Question ID: 1065
Regulation Reference: Guidelines on own risk and solvency assessment
Article: 41
Status: Final
Date of submission: 08 Dec 2016
Question
For the purposes of performing task suggested in Guideline 12, we need a document including the underlying assumptions for standard formula.
I know that it is available here:
https://eiopa.europa.eu/Publications/Standards/EIOPA-14-322_Underlying_Assumptions.pdf
But is it the latest version? I am not sure about that, because for instance in relation to pandemic risk (5.3.3 Calibration of Health Pandemic Catastrophe standardised scenario) document mentions only the "income protection" part of the calculation but not the "medical expense" part. It mentions that:
"The scope of insurance products affected by the pandemic scenario is assumed to be limited to Long Term Disability (lasting 10 years) products."
Which is obviously not true as the pandemic risk also takes into account the medical expenses resulting from an infectious dicease in case of event death, permanent disability, 10year disability, 12 month dosability and medical treatement.
Could you please comment on that?
EIOPA answer
The document, to which you have pointed out in your mail, is still the relevant EIOPA document for the ORSA assessment according to Article 45(1c).
Please note that this document is a background information, aiming to support the regulatory requirement mentioned above.
We would like to steer your focus to the disclaimer on its front page, meaning that its revision compared to the final Delegated Act is still foreseen by EIOPA.
Regarding the assessment of the risk profile, please take into account paragraph 1.4 and 1.6 of the introduction.