Question ID: 1872
Regulation Reference: Guidelines on application of life underwriting risk module
Topic: Solvency Capital Requirement (SCR)
Article: Articles 142 and 159: COMMISSION DELEGATED REGULATION (EU) 2015/35 of 10 October 2014
Status: Final
Date of submission: 01 Mar 2019
Question
For the purpose of caluclating the lapse SCR, should the SCR be assessed at an individual policy level or homogeneous group level? If assessed at a homogenous group level, are offsetting movements between positive and negative SCR amounts allowed within the same homogeneous group?
EIOPA answer
Please note the COMMISSION DELEGATED REGULATION (EU) 2019/981 of 8 March 2019 amending Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) entered into force on 8 July 2019.
This amended Delegated Regulation explicitly allows, under certain conditions, lapse risk SCR calculation at the level of homogeneous group of policies: please see recital (13) in general and new articles 95a and 102a in particular for life and SLT health lapse risks, respectively.