Why is Solvency II not applicable to all companies irrespective of the following conditions - gross premium income exceeding €5 million or gross technical provisions in excess of €25 million? If not solvency II, then how do small companies report their results in EU and UK Market? What is the difference between UK Solvency II and EU Solvency II.
I'm not sure whether I have understood question 1 correctly, but small companies (ie falling below this threshold) do not have to report under Solvency II. They will therefore report under whatever rules their national regulator has in place for such companies. These will likely be more straightforward than complying with Solvency II, thereby avoiding putting an unnecessary burden (cost, resources) on these small companies.
The Core Reading (for 2024 exams) indicates that these UK reforms are 'not considered further' in the SA2 course, beyond mentioning that they might take place. Therefore you would not need to know details for the exam. If you are asking about this from a work perspective, then internet searches will find you what you need to know. For example, information on the regulations relating to risk margin and matching adjustment reforms can be found here: https://www.gov.uk/government/publi...ertakings-prudential-requirements-regulations And info on other proposals can be found here: https://www.bankofengland.co.uk/pru...lvency-ii-adapting-to-the-uk-insurance-market
