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September 14, 2017

EC published Commission Delegated Regulation (EU) 2017/1542, which amends the Delegated Regulation (EU) 2015/35 on calculation of regulatory capital requirements for certain categories of assets held by insurance and reinsurance undertakings (infrastructure corporates). This regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

EC requested and received further technical advice from EIOPA regarding the criteria and calibration of a new asset class for infrastructure corporates. Based on EIOPA's technical advice to amend the existing treatment of qualifying infrastructure project investments, the existing provisions for infrastructure projects are being amended. EIOPA's technical advice as well as complementary evidence confirms that qualifying infrastructure corporate investments can be safer than non-infrastructure investments. Delegated Regulation (EU) 2015/35 should be amended to include the new risk calibrations for debt investment in qualifying infrastructure corporates to distinguish these investments from non-infrastructure investments. Following the introduction of the new qualifying infrastructure corporate asset class, other provisions of Delegated Regulation (EU) 2015/35 should be aligned accordingly, such as the formula for the solvency capital requirement and the due diligence requirements which are essential for prudent investment decisions by insurance companies. Therefore, the Delegated Regulation (EU) 2015/35 is amended as follows: 

Points 55a and 55b in Article 1 have been replaced.

Paragraph 1 in Article 164a have been replaced.

Article 164b specifying qualifying infrastructure corporate investments has been inserted.

Paragraphs 1, 4, and 6 of Article 168 have been replaced. Paragraph 3b of Article 168 has been inserted.

Paragraph 4 of Article 169 has been added.

Paragraph 4 of Article 170 has been added.

The introductory sentence in Article 171 has been replaced

Paragraphs 14, 15, and 16 in Article 180 have been added

The second paragraph of point (b) in Article 181 has been replaced.

Article 261a specifying risk management for qualifying infrastructure investments or qualifying infrastructure corporate investments has been replaced.

 

Related Links

CDR 2017/1542 (PDF)

CDR 2015/35 (PDF)

Effective Date: September 15, 2017

Keywords: Europe, EU, Insurance, Solvency II, Regulatory Capital Requirements, CDR 2017/1542, CDR 2015/35, EC

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