Question ID: 3149
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
Status: Rejected
Date of submission: 30 Aug 2024
Question
In the application of the mass lapse risk shock for year-end reporting, should the instantaneous shock be assumed to occur on the 31st of December or on the 1st of January?
Background of the question
The exact timing of the mass lapse shock can be relevant/material because of overnight changes in surrender value.
EIOPA answer
The question was rejected as it has already been addressed. According to Q&A 2967, “The instantaneous event occurs on the first day of the period.” Therefore, the shock should be applied on the 1st of January.