This technical specification is a working document proposed by EIOPA to be used by insurance and reinsurance undertakings participating in any quantitative assessment to be undertaken until new update is available. As there are essential parts of the valuation framework still under political discussions, i.e. the discount rates for the technical provisions calculations, this document is not intended to be a complete set of technical specifications for the Solvency II balance sheet valuation, nor for the Solvency Capital Requirements calculations. These essential parts are not included at this stage but will follow in due course.
Not even when the specification of discount rates for TP calculations are finally added, should the resulting technical specifications be seen as a complete implementation of the Solvency II framework, since for the purpose of feasibility of testing exercises, shortcuts and ad hoc simplifications have been included. In particular, relevant parts of the SCR calculation such as internal models section, undertaking specific parameters section and within the group section: the combination method, the treatment of Participations, Ring Fenced funds and internal model for group calculation have been deliberately not included in the current technical specifications, as these were not considered by EIOPA as providing key information for the purposes of the quantitative tests that may be launched in the coming months. However, this should not be interpreted as speculation by EIOPA on its inclusion in the final Solvency II framework.
This technical specification is inspired by the knowledge that EIOPA has on the current status of the negotiations on Omnibus II Directive, the working documents on implementing measures, and its own work in the development of Technical Standards and Guidelines. EIOPA plans to incorporate the relevant elements of the technical provisions valuation, once the outcome of the OMD II negotiations is stabilised.
Press release
Full technical specification
Annexes to the Technical Specification for the Solvency II valuation and Solvency Capital Requirements calculations (Part I)
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