EC Rule Sets Out Technical Information for Solvency II Calculations
The European Commission (EC) published the Implementing Regulation 2021/1964 setting out technical information for calculation of technical provisions and basic own funds for reporting with reference dates from September 30, 2021 to December 30, 2021. This Regulation, which is in accordance with the Solvency II Directive, shall enter into force on the day following that of its publication in the Official Journal of the European Union. It shall apply from September 30, 2021.
Under this regulation, insurance and reinsurance undertakings shall use the provided technical information when calculating technical provisions and basic own funds for reporting with reference dates from September 30, 2021 to December 30, 2021. 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:
- Relevant risk-free rate term structures, as set out in Annex I
- Fundamental spreads for the calculation of the matching adjustment, as set out in Annex II
- Volatility adjustments for each relevant national insurance market, as set out in Annex III
Related Link: Regulation 2021/1964
Effective Date: November 13, 2021
Keywords: Europe, EU, Insurance, Reinsurance, Solvency II, Technical Provisions, Reporting, Volatility Adjustment, Matching Adjustment, Own Funds, EC
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