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European Insurance and Occupational Pensions Authority
 

2968

Q&A

Question ID: 2968

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: 142(6)

Status: Under Review

Date of submission: 30 Jan 2024

Question

Article 142(6) includes three mass-lapse instantaneous events, one for policies falling within the scope of operations referred to with Article 2(3)(b)(iii) and (iv) of Directive 2009/138/EC (letter a)), on for any other life insurance policies (letter b)) and one for future business within the boundary of an accepted reinsurance contract (letter c). The second subparagraph of article 142(6) clarifies that for reinsurance contracts, the scenarios should be applied at the level of the underlying contract. However, the subparagraph only refers to letter a). Does this mean that for life reinsurance accepted covering policies falling under letter b) (i.e., most life insurance contracts) the mass-lapse capital requirement should be based only on lapses of future policies as per letter c), but exclude lapses from current policies?