Question ID: 1604
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 142
Status: Final
Date of submission: 09 Oct 2018
Question
According to Article 142 of the delegated act 2015_35 the capital requirement for the lapse risk refer to all options in pragraphs 4 & 5. Could you please confirm that the option of annuity payments offered at maturity instead of lump sum should be considered in the options of paragraph 4 b for the calculation of the lapse risk capital requirement ?
EIOPA answer
A contractual option for the policyholder to convert at maturity a lump-sum benefit at a predefined conversion base into an annuity falls under point (b) of the options referred to in Article 142(4) of Commission Delegated Regulation (EU) 2015/35.