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European Insurance and Occupational Pensions Authority

2186

Q&A

Question ID: 2186

Regulation Reference: (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)

Topic: Risk Free Rate (RFR)

Article: 77

Status: Final

Date of submission: 03 Sep 2020

Question

In relation to the aforementioned regulations, it is established that:
- the contracts on which the portfolio of insurance or reinsurance obligations is based do not give rise to the payment of future premiums;

For a product that has a future premium and payment cash flows:
Would it be possible to apply matching adjustment to the obligations cash flow  and the RFR to the flow of premiums? (split cash flows).

EIOPA answer

According to art. 77b sub (d) (https://www.eiopa.europa.eu/rulebook/article-2292_en)  products that give rise to future premium payments are explicitely excluded from applying the MA.