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
Featured Experts

Cassandra Hannibal
Life insurance actuary; risk management and economic capital specialist

Paul McCarney
Insurance product strategist; insurance domain expert; extensive experience developing risk assessment frameworks for insurers

Brian Robinson
Actuary; risk management specialist; corporate and capital modelling expert
Previous Article
FINMA Identifies Key Risks, Issues Update on Climate Risk WorkRelated Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.