3.1 This chapter sets out the PRA's proposals to make changes to the PRA Rulebook and other policy material relating to aspects of liability eligibility within the MA portfolio. The proposed changes are consequential to the Government's anticipated reforms to the MA, as set out in the draft MA regulations.
3.2 The policy proposals in this chapter would:
• restate the existing MA liability eligibility conditions from The Solvency 2 Regulations 2015 into the PRA Rulebook (with certain changes as described in this chapter);
• expand the underwriting risks that are permitted in MA portfolios to include recovery time risk; and
• permit the inclusion of the guaranteed benefits component of with-profits annuities in MA portfolios, where that component is legally established and identifiable as guaranteed within an insurance contract and would otherwise meet the MA eligibility requirements. Under this proposal, the non-guaranteed element would be retained outside the MA portfolio.
3.3 Th
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