Regulatory Alerts2019-11-19
Added · Updated
Q&A on Solvency II Treatment of National Mortgage Guarantee
Insurance companies are prohibited from reducing the Solvency II Standard Formula capital requirement for mortgage loans by accounting for the Dutch National Mortgage Guarantee (NHG). This restriction applies because the NHG fails to meet specific Solvency II Delegated Regulation requirements, notably Article 215(d), which mandates that guarantors pay without the insurer first pursuing the obligor. Consequently, mortgage loans including the NHG must be treated identically to those excluding it for solvency capital calculations.