Skip to main content
European Insurance and Occupational Pensions Authority

2325

Q&A

Question ID: 2325

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 189

Status: Final

Date of submission: 11 Aug 2021

Question

A non-life guarantee fund owes a fixed amount of money to an insurance undertaking for services the insurer provided. Hence the non-life guarantee fund poses a counterparty default risk to the insurance undertaking in question. 

Shall the exposure to the guarantee fund be treated as a “Type 1” or “Type 2” exposure to determine the correct solvency requirement of the receivables?

EIOPA answer

The exposure should be covered in the calculation of the capital requirement for counterparty default risk on type 2 exposures.