There are geographical areas that are not assigned to any of the regions set out in Delegated Regulation (EU) 2015/35, Annex III, paragraph 8, e.g. the Åland Islands or the Faroe Islands.

How should such geographical areas be treated in the calculation of the factor for geographical diversification as set out in Annex III of that Regulation?

EIOPA answer

The answer to this question is provided by the European Commission.

For the purpose of the calculation of the factor for geographical diversification in the non-life or the health premium and reserve risk, a reference to a country in paragraph 8 of Annex III of Delegated Regulation (EU) 2015/35 should contain all of that country’s territories, irrespective of their legal or administrative status, unless otherwise specified in that paragraph.

Therefore, the Åland Islands as part of Finland and the Faroe Islands as part of Denmark should be assigned to the region “Northern Europe” in the calculation of the factor for geographical diversification.

In accordance with point (a) of paragraph 1 of that Annex, any geographical area that is not a territory or part of a territory listed in paragraph 8 of that annex should not be taken into account in the calculation of the factor for geographical diversification of a particular segment.

Disclaimer provided by the European Commission:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies, in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.