Regulatory Alerts2016-04-25 | NBB_2016_25Added · Updated
Circular NBB_2016_25 on long-term guarantee measures application
The National Bank of Belgium issues guidelines for Belgian insurance and reinsurance undertakings on applying long-term guarantee measures, including the volatility adjustment, equalisation reserve, and transitional measures for risk-free interest rates and technical provisions. The document mandates that these adjustments remain unchanged when applying interest rate and spread shocks to the Solvency Capital Requirement (SCR) and specifies how to calculate the Minimum Capital Requirement (MCR) and operational capital requirements using technical provisions before the application of transitional deductions. These orientations ensure consistent application of Solvency II principles and become effective from 23 March 2016.