EIOPA published a consultation paper on the second set of advice for review of the Solvency Capital Requirement (SCR) of Solvency II, as foreseen in the Directive and its Delegated Acts. The consultation focuses on the remaining elements (which the first set of advice did not cover) in the review of the SCR standard formula. Comments are to be submitted by January 05, 2018.
SCR standard formula is a key requirement of Solvency II and it aims to capture the material quantifiable risks faced by most undertakings. EIOPA is consulting on overarching aspects of the SCR standard formula and soliciting stakeholder feedback on key sub-modules such as the loss-absorbing capacity of deferred taxes calculation, the calculation of non-life and life underwriting risks, catastrophe risks, unrated debt and unlisted equity, and other topics such as cost of capital in the calculation of the risk margin. Stakeholder responses are important for taking informed decisions on technically sound advice and achieving the SCR review’s objectives.
EIOPA aims to propose possible simplifications and to ensure a proportionate and technically robust, risk-sensitive and consistent supervisory regime for the insurance sector. The outcome of this consultation will result in the second set of Advice to be submitted to the EC by the end of February 2018. The first set of advice was submitted to the EC on October 30, 2017.
Comment Due Date: January 05, 2018
Keywords: Europe, EU, Insurance, Solvency II, SCR, Advice, Consultation, EC, EIOPA
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