EIOPA · 1872
Solvency Capital Requirement (SCR)
- Regulation
- Guidelines on application of life underwriting risk module
- Article
- Articles 142 and 159: COMMISSION DELEGATED REGULATION (EU) 2015/35 of 10 October 2014
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2019-03-01
- Answered
- 2019-11-13
Question
For the purpose of caluclating the lapse SCR, should the SCR be assessed at an individual policy level or homogeneous group level? If assessed at a homogenous group level, are offsetting movements between positive and negative SCR amounts allowed within the same homogeneous group?
Answer
Please note the COMMISSION DELEGATED REGULATION (EU) 2019/981 of 8 March 2019 amending Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) entered into force on 8 July 2019.
This amended Delegated Regulation explicitly allows, under certain conditions, lapse risk SCR calculation at the level of homogeneous group of policies: please see recital (13) in general and new articles 95a and 102a in particular for life and SLT health lapse risks, respectively.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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