Q&A

Question

Does the risk-free rate referenced for discounting the cashflows in the formula in paragraph 1 of article 37 include the use of UFR?

EIOPA answer

Consistent with the Answer to Q&A2010 , the risk free rate used to calculate the denominator of the risk margin should come from the data published monthly by EIOPA. This Risk-Free Interest Rate Term Structures  can be found here : https://www.eiopa.europa.eu/tools-and-data/risk-free-interest-rate-term-structures-0_en

Those curves are built upon a methodology that relies on the definition of an Ultimate Forward Rate.