Regulatory Alerts2022-07-12
Added · Updated
Q&A on recognition of risk mitigation techniques using reinsurance contracts in the Solvency II Standard Formula
Insurance undertakings must ensure reinsurance contracts meet specific criteria under Articles 208 to 215 of the Solvency II Delegated Regulation to be recognized for Solvency Capital Requirement calculations. The document details requirements for clearly defined claims in default scenarios, the assessment of losses related to the risk margin, and the security of collateral arrangements under Article 214. It further mandates robust governance systems, including risk management policies for concentration risk and actuarial opinions on reinsurance adequacy, to monitor contract effectiveness.