EIOPA · 2691
Technical Provisions (TPs), Solvency Capital Requirement (SCR)
- Regulation
- Revised Guidelines on valuation of technical provisions, (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 36 of DR 2015/35
- Topic
- Technical Provisions (TPs), Solvency Capital Requirement (SCR)
- Submitted
- 2024-04-26
- Answered
- 2024-08-29
Question
For personal accident riders attached to life insurance contracts, can claims reserves be valued using non-life techniques and stressed under the health NSLT module, while premium reserves are valued using life techniques under the SLT Health or Life UW modules?
Answer
Guidance on Segmentation and unbundling can be found in Section 2 of the Guidelines on Valuation of Technical Provisions. If it is possible to unbundle the contract, unbundling should be performed, given than more than one of the risks are material. Otherwise, care should be taken to classify the Technical Provisions in a way that best reflect the observed risk profile. Article 36 of the Delegated Acts outlines the principles for calculating the best estimate of non-life insurance obligations (premium provision and provision for claims outstanding). The choice of relevant underwriting risk submodule is determined by the classification of the Technical Provisions.
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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