In view of our continued support for a deeper and more integrated European Capital Markets Union (CMU), De Nederlandsche Bank (DNB) and the Dutch Authority for the Financial Markets (AFM) present next steps to shape the right policies and create a competitive European capital market.Read more
How to deal with NHG under Solvency II
Published: 19 November 2019
Under the current Solvency II regime, is an insurance company permitted to take the national mortgage guarantee (Nationale Hypotheek Garantie – NHG) into account in determining the solvency capital requirement (SCR) for mortgage loans using the Standard Formula (SF)?
No, a mortgage loan including NHG does not lead to a lower SCR compared to a similar mortgage loan excluding NHG. The amendments made in 2019 to article 192(4) of the Solvency II Delegated Regulation did indeed broaden the possibilities to recognize guarantees in relation to mortgage loans, however the NHG does not comply with all the relevant Solvency II requirements on guarantees in relation to mortgage loans. Article 215(d) of the Solvency II Delegated Regulation for instance requires that an insurance company does not first have to pursue the obligor before obtaining a payment by the guarantor. However, the NHG requires an insurance company to first pursue the obligor before the guaranteed amount is paid out.
Dutch institutional investors such as pension funds, investment funds and insurers kept their investments in risky bonds roughly the same over the past 12 months. This is a break from previous years: since 2019, large investors had expanded their exposure to what are termed high-yield bonds.Read more
Supervisory authority De Nederlandsche Bank (DNB) is submitting a new anti-money laundering approach to financial institutions and other stakeholders as part of a public consultation. In a policy document presented today [...]Read more
The Dataloop application for Solvency II insurers will go live in My DNB on 1 November. Dataloop offers you an improved user experience when interacting with DNB on supervisory reports, and DNB can use Dataloop to assess report data quality more efficiently.Read more