EC Rule Updates Data for Calculations Under Solvency II Reporting
EC published the Implementing Regulation 2020/193, which lays down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from December 31, 2019 to March 30, 2020, in accordance with the Solvency II Directive (2009/138/EC). This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. It shall apply from December 31, 2019, as stated in Article 2 of the regulation.
Under this regulation, insurance and reinsurance undertakings shall use the provided technical information when calculating technical provisions and basic own funds for reporting with the above-mentioned reference dates. For each relevant currency, the technical information used to calculate the best estimate in accordance with Article 77 of Solvency II Directive, the matching adjustment in accordance with Article 77c of that Directive and the volatility adjustment in accordance with Article 77d of that Directive shall be the following:
- The relevant risk-free rate term structures set out in Annex I
- The fundamental spreads for the calculation of the matching adjustment set out in Annex II
- For each relevant national insurance market, the volatility adjustments set out in Annex III
Related Link: Regulation 2020/193
Effective Date: February 14, 2020
Keywords: Europe, EU, Insurance, Solvency II, Own Funds, Reporting, Matching Adjustment, Volatility Adjustment, Regulation 2020/193, EC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Adam Koursaris
Asset and liability management expert; capable modeler; risk and capital specialist
Dieter Van der Stock
IFRS subject matter expert; accounting authority; risk management specialist
Related Articles
|
News
APRA Plans to Assess Climate Risks and Develop Prudential GuidanceAPRA published a letter that outlines its plans to undertake a climate change vulnerability assessment and develop a prudential practice guide focused on climate-related financial risks.
February 24, 2020
WebPage
Regulatory News
|
|
News
FDIC Publishes Guide to Help with Third-Party Risk ManagementThe technology lab of FDIC (FDiTech) published a new guide to help financial technology, or fintech, companies and others partner with banks.
February 24, 2020
WebPage
Regulatory News
|
|
News
APRA to Transition to Annual Stress Testing of Large Banks in 2020APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.
February 21, 2020
WebPage
Regulatory News
|
|
News
IAIS Statement on Monitoring Period of Insurance Capital StandardIAIS published a statement from its Secretary General Jonathan Dixon on the Insurance Capital Standard (ICS) monitoring period.
February 21, 2020
WebPage
Regulatory News
|
|
News
EC Consults on Review of Non-Financial Reporting DirectiveEC is launched a consultation on the review of the Non-Financial Reporting Directive or NFRD (Directive 2014/95/EU, as part of its strategy to strengthen sustainable investment in Europe.
February 20, 2020
WebPage
Regulatory News
|
|
News
EIOPA Consults on Standards for Supervisory Reporting Under PEPP RuleEIOPA is consulting on the implementing technical standards for supervisory reporting and cooperation, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation (Regulation 2019/1238).
February 20, 2020
WebPage
Regulatory News
|
|
News
EIOPA Publishes Statement on Adverse Interest Rate EnvironmentEIOPA published a supervisory statement on the impact of the ultra-low or negative interest rate environment on the insurance sector in EU.
February 20, 2020
WebPage
Regulatory News
|
|
News
ECB Report on Transfer of Liquidity from EONIA Products to €STRECB published a report on the transfer of liquidity from the cash and derivatives products of the Euro Overnight Index Average (EONIA) to the Euro Short-Term Rate (€STR).
February 19, 2020
WebPage
Regulatory News
|
|
News
ESRB Publishes Report on Systemic CyberattacksESRB published a report that explores systemic implications of cyber incidents, such as cyberattacks.
February 19, 2020
WebPage
Regulatory News
|
|
News
FSB Chair Sets Out Key Deliverables for G20 Presidency of Saudi ArabiaFSB published a letter from the Chair Randal K. Quarles to the G20 finance ministers and Central Bank governors ahead of the meetings in Riyadh on February 22-23.
February 19, 2020
WebPage
Regulatory News
|
