EIOPA · 3469

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: 120
Topic: Solvency Capital Requirement (SCR)
Submitted: 2025-11-28
Answered: 2026-02-05

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Question

Offshore Windfarms often have an onshore component (parts of a cable and/or onshore substation). Damage to onshore components can cause Business Interruption (BI) claims from the farm. Should the BI insured value of the Windfarm and the value of the onshore components thus be included in the (onshore) NAT-CAT calculation? (and outside Europe: the BI premium)

Background

Substance over form: The risk is of a offshore windfarm is probably not lower than the risk of a onshore windfarm

Answer

Yes, offshore business interruption contingent on onshore events should be included in the NATCAT SCR. A way to do so in the standard formula is to use the closest CRESTA zone factors.

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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.