Question ID: 2352
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: 168(3)
Status: Final
Date of submission: 02 Nov 2021
Question
As the equity risk sub-module Type 2 equities shall comprise all assets other than those covered in the interest rate risk sub-module, the property risk sub-module or the spread risk sub-module - the question is whether fixed assets of insurance company should also be part of this "equities".
Background of the question
Logic dictates that fixed assets (used for your own purposes - valued at fair value) should not be subject to 49% stress. Their variability is lower - possibly closer to zero. Besides the organization that is extensively using cloud computing (SaaS, IaaS, PaaS) is in better capital situation (lower SCR) that the organisation having servers on premise.
EIOPA answer
Fixed assets of an insurance company, unless they fall within the scope of a different sub-module (for example property) should be included in the calculation of the capital requirement for type 2 equities as set out in Article 168 (3) of the Delegated Regulation.