Insurance Quarterly Legal And Regulatory Update - 1 January 2018 – 31 March 2018

Author:Dillon Eustace
Profession:Dillon Eustace
 
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INSURANCE QUARTERLY LEGAL AND REGULATORY UPDATE

Solvency II

(i) EIOPA publishes monthly technical information for Solvency II relevant risk free interest rate term structures

The European Insurance and Occupational Pensions Authority ("EIOPA") intends to publish the technical information in relation to risk free interest rate ("RFR") term structures on a monthly basis to ensure consistent calculation of technical provisions across the European Union.

In Quarter 1, EIOPA published the RFR as follows:

With reference to the end of December 2017 on 9 January 2018; With reference to the end of January 2018 on 6 February 2018; and With reference to the end of February 2018 on 6 March 2018. Undertakings should note that EIOPA has stated on their website that, in certain circumstances, it may be necessary for EIOPA to amend and/or republish the technical information after it has been published.

EIOPA's background material and the monthly technical information on the relevant risk-free interest rate term structures can be accessed here.

(ii) EIOPA publishes monthly symmetric adjustment of the equity capital charge for Solvency II

On a monthly basis, EIOPA updates information on the symmetric adjustment of the equity capital charge. The symmetric adjustment to the equity capital charge shall be included in the calculation of the equity risk sub-module in accordance with the Solvency Capital Requirements ("SCR") standard formula to cover the risk arising from changes in the level of equity prices. This adjustment is regulated mainly in Article 106 of the Solvency II Directive; Article 172 of the Solvency II Regulation as well as in the Implementing Technical Standards on the equity index for the symmetric adjustment of the equity capital charge (Commission Implementing Regulation 2015/2016/EU).

EIOPA published the technical information on the symmetric adjustment of the equity capital charge for Solvency II as follows:

With reference to the end of December 2017 on 9 January 2018; With reference to the end of January 2018 on 6 February 2018; and With reference to the end of February 2018 on 6 March 2018. The monthly symmetric adjustment of the equity capital charge can be accessed via the

following link.

(iii) EIOPA publishes report on the application of group supervision under Solvency II

On 25 January 2018, EIOPA published its report (dated 22 December 2017) to the European Commission under Article 242(1) of Directive 2009/138/EC (the...

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