How is the volume measure for the SCR for current premium risk determined for health insurers under Solvency II?
The volume measure for the SCR for current premium risk has been laid down in Article 147 of the Solvency II Commission Delegated Regulation. For one-year health insurances the volume measure is equal to the premiums to be earned during the following 12 months from the existing portfolio and the expected renewals in the coming calendar year. Premiums yet to be earned from new production are also included in this. These comprise all premium payments related to the insurance contracts covering the following 12 months, irrespective of the timing of their receipt.
If the estimate of premiums to be earned in the next 12 months is lower than the observed premiums earned in the past 12 months, the premiums earned in the past 12 months will serve as the volume measure.
Liability-Driven Investment funds (LDI funds) mainly invest in long-term government bonds and long-term interest rate derivatives. The use of these interest rate derivatives exposes LDI funds to liquidity risks in case of large interest rate fluctuations.
Read more Limited liquidity risks in Euro LDI funds
This week, the European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published their final reports on greenwashing in the financial sector.
Read more European Supervisory Authorities publish reports on greenwashing in the financial sector
On Tuesday 28th May from 3:00-4:45 PM CET DNB will organize an online information session about fit and proper assessments.
Read more Information session about fit and proper assessments DNB
The rapid development of artificial intelligence (AI) poses challenges for the supervisory work of the AFM and DNB. The supervisory authorities have published a report with criteria and areas of attention for shaping the supervision of AI.
Read more AFM and DNB publish report on the impact of AI on the financial sector and supervision
