The Bank of England’s Prudential Regulation Authority (PRA) has launched a consultation on proposals to reform the Matching Adjustment (MA) application process by introducing a Matching Adjustment Investment Accelerator (MAIA) permission. The proposed framework would allow insurers to obtain immediate recognition of the MA benefit ahead of receiving full permission, aiming to reduce barriers to rapid investment. Under the proposals, firms with an MAIA permission would have 24 months to submit a formal MA application for eligible assets with new features, reducing the risk of missing time-sensitive investment opportunities. The consultation is relevant to insurers that currently have an MA permission or may seek one in future, and restates that the MA allows firms to discount liability cash flows at a higher rate than the basic risk-free rate, resulting in a lower liability value. The consultation closes on Wednesday 4 June 2025.
Bank of England 2025-04-08
Bank of England consults on new Matching Adjustment Investment Accelerator permission giving insurers 24 months to file full MA applications
The Bank of England's Prudential Regulation Authority is consulting on reforms to the Matching Adjustment (MA) application process by introducing a Matching Adjustment Investment Accelerator (MAIA) permission. This framework would enable insurers to gain immediate MA benefit recognition before full permission, facilitating quicker investments. Insurers with MAIA permission would have 24 months to submit a formal MA application for assets with new features.