Featured Product

    BaFin Issues Decision Related to Article 56 of Solvency II Regulation

    November 15, 2018

    BaFin published an "interpretation decision" related to the Solvency II supervisory regime and this decision is addressed to all insurers subject to the Solvency II supervisory regime. The decision makes the clarifications about how insurance companies should examine the appropriateness of the valuation methodology for insurance reserves.

    The interpretation decision addresses, inter alia, the notion of "error" used in Article 56 (2) of Regulation (EU) 2015/35 on Solvency II, which plays a central role in assessing the adequacy of the method. It also highlights the consequences of applying Article 56 to other areas as well as specifics of application for life assurance obligations. Within the Solvency II framework, actuarial provisions must be formed for all insurance obligations to policyholders and beneficiaries. The methods used to calculate the provisions must be appropriate in relation to the nature, extent, and complexity of the risks underlying the insurance obligations. When determining an appropriate method of calculation, undertakings shall carry out an audit in accordance with Article 56 of Delegated Regulation (EU) 2015/35. In doing so, entities should examine risks of the underlying obligations and assess errors in the results of the method that may result from differences between the underlying assumptions of the method and the risks identified. 

     

    Related Links (in German)

    Keywords: Europe, Germany, Insurance, Solvency II, Interpretation Decision, Underwriting Provisions, BaFin

    Featured Experts
    Related Articles
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    News

    US Agencies Issue Statement on Additional COVID-19 Loan Accommodations

    FFIEC, on behalf of its members that include US Agencies such as CFPB, FDIC, FED, NCUA, and OCC, issued a joint statement that sets out prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers.

    August 03, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5622