Claim: Pillar 1 of Solvency II (a Directive in European Union law that codifies and harmonizes the EU insurance regulation) sets out technical provisions, which are intended to represent the current amount the (re)insurance company would have to pay, compromise two components: the best estimate of the liabilities plus a risk margin.
Evidence: Solvency II is a Directive in European Union law that codifies and harmonises the EU insurance regulation. Technical provisions are intended to represent the current amount the (re)insurance company would have to pay for an immediate transfer of its obligations to a third party. Technical provisions comprise two components: the best estimate of the liabilities (i.e. the central actuarial estimate) plus a risk margin.