Question ID: 1719
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 251
Status: Final
Date of submission: 05 Apr 2019
Question
How should a non-life undertaking calculate the linear MCR for its occupational disability insurance?
What extent of disability do the non-life undertakings assume when calculating the Capital At Risk (CAR) as part of their linear MCR calculation?
EIOPA answer
Provided that the technical basis is consistent with the nature of the risks relating to the obligation, obligations of occupational disability insurance pursued on a similar technical basis to that of life insurance should be included in the calculation of the linear formula component for life insurance and reinsurance obligations as set out in Article 251 of the Delegated Regulation.
For the calculation set out in Article 251(1)(e)(i) of the Delegated Regulation the extent of disability should be used that produces the highest capital at risk.