{
  "url": "https://openlegislation.uk/insurance-companies-regulations-1994/regulation-61",
  "json_url": "https://openlegislation.uk/insurance-companies-regulations-1994/regulation-61.json",
  "legislation": "uksi/1994/1516",
  "legislation_title": "The Insurance Companies Regulations 1994",
  "legislation_url": "https://openlegislation.uk/insurance-companies-regulations-1994",
  "path": "regulation/61",
  "kind": "regulation",
  "number": "61",
  "heading": "Provision for adverse changes",
  "text": "(1) An insurance company which has or may have (following the exercise of any right by a third party) an obligation under a derivative contract or a contract to which regulation 48(8) applies shall make such provision as shall be sufficient, on prudent assumptions, to allow for the effect of possible adverse changes in—\n(a) the current value of the assets or indices of assets to which that contract relates; and\n(b) the current value of any assets held by the company,\non the ability of the company to meet its obligations under that contract.\n(2) For the purposes of paragraph (1) above, the company shall have regard to—\n(a) past volatility in the value of such assets or indices of assets (and in the value of assets or indices of a similar nature); and\n(b) the possibility of adverse changes in the volatility of the value of such assets or indices in the future.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [
    {
      "type": "amended",
      "affecting": "uksi/1996/942",
      "affecting_title": "The Insurance Companies (Amendment) Regulations 1996"
    },
    {
      "type": "substituted",
      "affecting": "uksi/1996/942",
      "affecting_title": "The Insurance Companies (Amendment) Regulations 1996"
    },
    {
      "type": "added",
      "affecting": "uksi/1996/942",
      "affecting_title": "The Insurance Companies (Amendment) Regulations 1996"
    },
    {
      "type": "substituted",
      "affecting": "uksi/1995/3248",
      "affecting_title": "The Insurance Companies (Amendment) Regulations 1995"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1994/1516/regulation/61",
    "retrieved_at": "2026-10-29T13:31:36.830993+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}