EIOPA · 564

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: 2016-01-15
Answered: 2016-05-19

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Question

Do total receivables (amount from IFRS balance sheet) or receivables from SII balance sheet (diminished amount), which is result of excluding from assets the part of receivables which is taken as a cash inflow during creating cash flows for calculation of premium reserves as a part of Best Estimate, entry in counterparty default risk on type 2 exposures?

Answer

When calculating the capital requirement for counterparty default risk on type 2 exposures the value of receivables from the Solvency II balance sheet and not from the IFRS balance sheet should be taken into account.

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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.