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.