Solvency Capital Requirement (SCR)

1. According to Article 116(6) of the Commission Delegated Regulation (EU) 2015/35 (DR), the volume measure for reserve risk of a particular segment shall be equal to the best estimate of provisions for claims outstanding for the segment. The volume measure shall not be negative. In the example, the volume measure should therefore be 0. 2. As explained in Q&A 1683, unpaid premiums should be considered within insurance receivables only after their due date and should then be treated as type 2 exposures in the counterparty default risk module 3. In accordance with Article 306 DR, the ORSA supervisory report shall present information on the extent to which quantifiable risks of the undertakings are not reflected in the SCR. In accordance with Article 37 of Directive 2009/138/EC supervisory authorities may exceptionally set a capital add-on for an insurance undertaking in case the risk profile of the insurance undertaking deviates significantly from the assumptions underlying the SCR.