Consultation on the revision of the Guidelines on Valuation of Technical Provisions

The Guidelines on valuation of technical provisions aim to increase consistency and convergence of professional practice for all types and sizes of undertakings across the EU Member States and to support undertakings in calculating their technical provisions under Solvency II.

In the new and amended guidelines, EIOPA clarifies that where contracts with material options and guarantees exist, undertakings are expected to use a valuation method that captures the time value of these contracts. Guidelines addressing expert judgement, a key component of the calculation of technical provisions, are proposed based on the existing Guidelines on the use of internal models, which were already applicable for technical provision valuation purposes.

EIOPA invites stakeholders to respond to the survey until 12 November by responding to the questions in the survey below.