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European Insurance and Occupational Pensions Authority

148

Q&A

Question ID: 148

Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)

Article: 129, 73, 35

Template: S.28.01

Status: Final

Date of submission: 02 Feb 2015

Question

Could you please confirm what the absolute floor is as the technical specifications recently issued differ to the guidelines. 

The LOG for S.28.01 (included within the guidelines) states for cell A29 that the absolute floor "is as defined in Art 129(1)d of the Solvency II Directive" i.e. 
"(i) EUR 2 200 000 for non-life insurance undertakings, including captive insurance undertakings, save in the case where all or some of the risks included in one of the classes 10 to 15 listed in Part A of Annex 1 are covered, in which case it shall be no less than EUR 3 200 000,
(ii) EUR 3 200 000 for life insurance undertakings, including captive insurance undertakings,
(iii) EUR 3 200 000 for reinsurance undertakings, except in the case of captive reinsurance undertakings, in which case the Minimum Capital Requirement shall be no less than EUR 1 000 000,
(iv) the sum of the amounts set out in points (i) and (ii) for insurance undertakings as referred to in Article 73(5)." 

However, the technical specification for Preparatory Phase have the absolute floor as 
" (i) EUR 2 500 000 for non-life insurance undertakings, including captive insurance undertakings, save in the case where all or some of the risks included in one of the classes 10 to 15 listed in Part A of Annex K28 are covered, in which case it should be no less than EUR 3 700 000,
(ii) EUR 3 700 000 for life insurance undertakings, including captive insurance
undertakings,
(iii) EUR 3 600 000 for reinsurance undertakings, except in the case of captive
reinsurance undertakings, in which case the Minimum Capital Requirement should be no less than EUR 1 200 000, 
(iv) the sum of the amounts set out in points (i) and (ii) for insurance undertakings
as referred to in Article 73(5) of the Solvency II Framework Directive (Directive 2009/138/EC also known as “old composite” undertakings).
(v) the sum of amounts set out in points (i) and (ii) for insurance undertakings as
referred to in Article 73(2) of the Solvency II Framework Directive (Directive
2009/138/EC also known as “new composite” undertakings).

Please confirm which absolute floor should be used, and if it is that contained in the Technical Specification for the Preparatory Phase whether this is a temporary change for the Preparatory Phase or will continue to apply for full reporting?

EIOPA answer

The absolute floor to be considered should be the one defined by article 129(1) d of Directive 2009/138/EC as amended by Omnibus II (Directive 2014/51/EU).