Question ID: 3469
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: 120
Status: Final
Date of submission: 28 Nov 2025
Question
Offshore Windfarms often have an onshore component (parts of a cable and/or onshore substation). Damage to onshore components can cause Business Interruption (BI) claims from the farm. Should the BI insured value of the Windfarm and the value of the onshore components thus be included in the (onshore) NAT-CAT calculation? (and outside Europe: the BI premium)
Background of the question
Substance over form: The risk is of a offshore windfarm is probably not lower than the risk of a onshore windfarm
EIOPA answer
Yes, offshore business interruption contingent on onshore events should be included in the NATCAT SCR. A way to do so in the standard formula is to use the closest CRESTA zone factors.