Question ID: 2247
Regulation Reference: (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)
Topic: Solvency Capital Requirement (SCR)
Article: 174
Status: Final
Date of submission: 08 Feb 2021
Question
a) Does silvicultural properties cover all types of forest/timber investments? b) Is it necessary to differentiate between pure silvicultural investments and investments in silvicultural related infrastructure? E.g. that only silvicultural properties can be covered by the property risk sub-module and not silvicultural related investments as e.g. infrastructural premises which are used in connection with the production/administration of timber (saw mills, machines like harvesters and/or other related forestial equipment)?
EIOPA answer
Buildings and land, whether related to silviculture or otherwise, should be covered in the property risk sub-module.
Article 174 of the Delegated Regulations, which sets out the capital requirement for property risk, covers “immovable property” and does consequently not apply to machines like harvesters or other movable forestial equipment. They have to be included in the calculation of the capital requirement for type 2 equities as set out in Article 168 (3) of the Delegated Regulation.