EIOPA · 3149

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: 142
Topic: Solvency Capital Requirement (SCR)
Submitted: 2024-08-30
Answered: 2024-10-11

Browse EIOPA Insurance Register → More Q&As on this regulation →

Question

In the application of the mass lapse risk shock for year-end reporting, should the instantaneous shock be assumed to occur on the 31st of December or on the 1st of January?

Background

The exact timing of the mass lapse shock can be relevant/material because of overnight changes in surrender value.

Answer

The question was rejected as it has already been addressed. According to Q&A 2967, “The instantaneous event occurs on the first day of the period.” Therefore, the shock should be applied on the 1st of January.

View original on European Insurance and Occupational Pensions Authority ↗

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.