- Publication date
- 22 November 2021
The objective of the capital add-on measure is to ensure that the regulatory capital requirements reflect the risk profile of the solo undertaking or of the insurance group. Therefore, it is important that national competent authorities (NCAs) use it when needed, with the aim to ensure a high degree of supervisory convergence in its application. It is also important to maintain a level playing field regarding the setting of capital add-ons.
The analysis included in the report is based on 2020 year-end data collected under Directive 2009/138/EC (Solvency II) as reported by the solo undertakings or insurance groups from the European Economic Area, and complemented by a dedicated survey for NCAs that entailed both qualitative and quantitative questions.