EIOPA · 2314

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: 168, 174
Topic: Solvency Capital Requirement (SCR)
Submitted: 2021-07-13
Answered: 2022-06-24

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Question

We are unsure on how to treat assets from CIC category 93 (own plant and equipment) in the solvency II standard formula. What is the correct shock for assets such as own furnitures, own cars, etc?

Background

In Q&A 1948 it is stated that "For instance real estate assets with CIC 93 and 95 (property for own use and plant and equipment for own use, respectively – see attached) should be shocked under the property risk sub-module of the market risk module." But this does not seem in line with article 174, which states that the module only relates to "immovable property".

Answer

As per the answer to question 2247, only immovable property should be included within the property risk sub-module. Other assets such as furniture and cars should be included in the calculation of the capital requirement for type 2 equities as set out in Article 168 (3) of the Delegated Regulation.

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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.