Question ID: 1686
Regulation Reference: (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)
Status: Final
Date of submission: 22 Oct 2018
Question
“The weight for the parameter expressed in point (b) of the first subparagraph shall increase at least linearly at the end of each year from 0 % during the year starting on 1 January 2016 to 100 % on 1 January 2023.”
this can be read in different ways. If the initial stress is 22% on the transitional start date of 1/01/2016, should this 22% be increased to the next year’s stress on (or indeed before) the EOY valuation date, or is it okay to increase this on 01/01/2017?
EIOPA answer
In the case described in the question the weight for the parameter expressed in point (b) of the first subparagraph should be increased to at least 1/7 on 31 December 2016. The weight should be 7/7 on 31 December 2022.