Question ID: 2620
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: 189
Status: Rejected
Date of submission: 04 Apr 2023
Question
In relation to Q&A 1549 (europa.eu) can you clarify the following please:
(i) As the tax amount is receivable from an Member State why does counterparty risk apply? In this respect we note that bonds and loans to Member States’ central government are assigned a risk factor of 0%. If the Type 2 risk is to apply, the 15% and 90% factors appear to be extremely high calibrations for amounts receivable from Member States.
(ii) How do undertakings determine if a tax receivable is overdue?”
Background of the question
We need to understand how the answer to the Q&A 1549 reflects what has been stipulated in the Solvency II Delegated Act.
EIOPA answer
This question has been rejected because it does not relate to the consistent and effective application of the legal framework covered by this Q&A process.