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10 Gibraltar International www.gibraltarinternational.comIn an evolving regulatory landscape, insurance firms must be prepared not only for growth and resilience%u2026 but also for a %u2018final chapter%u2019 of a book of business, %u2018The Solvent Exit%u2019.A solvent exit in the industry doesn%u2019t always mean a full exit from the market. It can involve a structured withdrawal from a particular line of business, undertaken to release trapped capital and redeploy resources into more profitable or strategic areas. In either case, whether leaving the market entirely or streamlining operations, the regulator now expects insurers to demonstrate that the process can be carried out in an orderly, well governed, and policyholder focused manner.Thanks to the Gibraltar Financial Services Commission%u2019s (GFSC) a new Guidance Note on Solvent Exit Planning for Insurers, published on 13 June 2025, outlines the expectations for insurers to plan and execute an orderly wind-down while remaining financially solvent.From the PRA to the RockSolvent exit planning has its roots in UK regulatory policy. Back in 2021, the Prudential Regulation Authority (PRA) introduced requirements for solvent exit planning, with its final policy (PS20/24, SS11/24) being issued on 18 December 2024. The rationale was straightforward: if an insurer decides to leave the market while solvent, it should be able to do so orderly, responsibly, and without destabilising policyholder protection mechanisms. The PRA%u2019s framework placed exit risk on the same footing as entry and operational risks.Given Gibraltar%u2019s close regulatory ties to the UK through the Gibraltar InsuranceShutting the door safely, a regulatory push for exit plansBy Erika Pozo, Director, Kroll (Gibraltar) LimitedContinued p12