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European Insurance and Occupational Pensions Authority

2290

Q&A

Question ID: 2290

Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)

Topic: Solvency Capital Requirement (SCR)

Article: Article 142 of the Commission Delegated Regulation (EU) 2015/35(6)(b)

Status: Final

Date of submission: 12 May 2021

Question

In mass lapse risk calculation of the standard formula for life underwriting risk, are there any requirements how to determine 40% of insurance policies for which discontinuance would result in increase of the technical provisions without the risk margin?

EIOPA answer

The event covered in Article 142(6)(b) of the Commission Delegated Regulation (EU) 2015/35 is the discontinuance of 40 % of all the insurance policies other than those falling within point (a) for which discontinuance would result in an increase of technical provisions without the risk margin.