Regulatory Alerts2016-10-05 | NBB_2016_39Added · Updated
Circulaire NBB_2016_39 / Dispensation from the obligation to set up supplementary provisions
Insurance companies subject to the law of 13 March 2016 active in life and work accident branches are granted a dispensation from the obligation to set up supplementary provisions, commonly known as 'flashing provisions', provided they satisfy Solvency II regulatory capital requirements without relying on transitional measures under Articles 668 and 669 of the Control Law. For entities that have conducted low-yield interest rate risk stress tests under Article 322, the dispensation is further conditional upon achieving sufficient results in those tests. The National Bank of Belgium reserves the right to impose additional conditions or refuse the dispensation based on the company's specific situation and market conditions. This circular replaces and repeals previous circulars D.252 (2004), 2006-2 (2006), and 2013-13 (2013) regarding the constitution of flashing provisions.