EIOPA · 2444
Solvency Capital Requirement (SCR)
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 135 and Annex XII
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2022-05-30
- Answered
- 2023-06-01
Question
This question relates to Article 135 and Annex XII of Delegated Regulation (EU) 2015/35 and the risk factor of 40% applying to insurance and proportional reinsurance obligations in respect of miscellaneous financial loss insurance.
If an insurance undertaking using the standard formula amends its policy wording (which is a travel insurance policy, falling under the miscellaneus financial loss insurance) such that catastrophe risk events/accumulation of a large number of similar claims are now excluded (i.e. there is no longer an exposure to such events), would this still result in a non-life catastrophe risk capital requirement?
Answer
The described case would result in a capital requirement for the other non-life catastrophe risk sub-module.
As referred to in Article 135 of Delegated Regulation (EU) 2015/35, the capital requirement depends on the estimate gross premiums but not on the exclusions in the terms and conditions of the policies.
See also Q&A 2292 on the applicability of terms and conditions for the natural catastrophe risk submodule and man-made catastrophe risk submodules.
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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