EIOPA · 2125

Solvency Capital Requirement (SCR)

Name: Solvency Capital Requirement (SCR): EIOPA Q&A — EU Financial Regulatory Q&A
Creator: European Insurance and Occupational Pensions Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 116
Topic: Solvency Capital Requirement (SCR)
Submitted: 2020-03-26
Answered: 2022-02-11

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Question

We have noticed different treatment of insurance premium tax related to volume measure for premium risk. In some instances/countries the tax is included in the total premium amount and consequently in the volume measure, while in other it is not.

Background

Observed different practices across Europe.

Answer

Following article 35 of the Directive 91/674/EEC (reference to be found in the EIOPA QRT LOG file on page 456) stating that "The above amounts [incl. gross written premiums] shall not include the amounts of taxes or charges levied with premiums.", we confirm the proposed answer is correct: the insurance premium tax (IPT) is excluded from the volume measure of premium risk.

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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.