EIOPA · 2620

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: 189
Topic: Solvency Capital Requirement (SCR)
Submitted: 2023-04-04
Answered: 2023-06-08

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Question

In relation to Q&A 1549 (europa.eu) can you clarify the following please: (i) As the tax amount is receivable from an Member State why does counterparty risk apply? In this respect we note that bonds and loans to Member States’ central government are assigned a risk factor of 0%. If the Type 2 risk is to apply, the 15% and 90% factors appear to be extremely high calibrations for amounts receivable from Member States. (ii) How do undertakings determine if a tax receivable is overdue?”

Background

We need to understand how the answer to the Q&A 1549 reflects what has been stipulated in the Solvency II Delegated Act.

Answer

This question has been rejected because it does not relate to the consistent and effective application of the legal framework covered by this Q&A process.

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