EIOPA · 2186
Risk Free Rate (RFR)
- Regulation
- (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)
- Article
- 77
- Topic
- Risk Free Rate (RFR)
- Submitted
- 2020-09-03
- Answered
- 2020-09-11
Question
In relation to the aforementioned regulations, it is established that:- the contracts on which the portfolio of insurance or reinsurance obligations is based do not give rise to the payment of future premiums;
For a product that has a future premium and payment cash flows:Would it be possible to apply matching adjustment to the obligations cash flow and the RFR to the flow of premiums? (split cash flows).
Answer
According to art. 77b sub (d) (https://www.eiopa.europa.eu/rulebook/article-2292_en) products that give rise to future premium payments are explicitely excluded from applying the MA.
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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