Source: https://service.betterregulation.com/document/187632
Timestamp: 2020-01-17 15:00:43
Document Index: 137432544

Matched Legal Cases: ['art. 13', 'art. 40', 'art. 72', 'art. 75', 'art. 158', 'art. 159', 'art. 178', 'art. 179', 'art. 180', 'art. 197', 'art. 206', 'art. 207', 'art. 212', 'art. 235', 'art. 246']

Article 77 Calculation of technical provisions | Directive 2009/138/EC - Insurance and Reinsurance Directive (recast) (Solvency II) | Better Regulation
Directive 2009/138/EC - Insurance and Reinsurance Directive (recast) (Solvency II)
Title I General Rules on the Taking-Up and Pursuit of Direct Insurance and Reinsurance Activities (arts. 1-177)
Chapter I Subject matter, scope and definitions (arts. 1-13)
Section 1 Subject matter and scope (arts. 1-2)
Section 2 Exclusions from scope (arts. 3-12)
Subsection 1 General (arts. 3-4)
Article 3 Statutory systems
Article 4 Exclusion from scope due to size
Subsection 2 Non-life (arts. 5-8)
Article 5 Operations
Article 6 Assistance
Article 7 Mutual undertakings
Article 8 Institutions
Subsection 3 Life (arts. 9-10)
Article 9 Operations and activities
Article 10 Organisations, undertakings and institutions
Subsection 4 Reinsurance (arts. 11-12)
Article 11 Reinsurance
Article 12 Reinsurance undertakings closing their activity
Section 3 Definitions (art. 13)
Article 13 Definitions
Chapter II Taking-up of business (arts. 14-26)
Article 14 Principle of authorisation
Article 15 Scope of authorisation
Article 16 Ancillary risks
Article 17 Legal form of the insurance or reinsurance undertaking
Article 18 Conditions for authorisation
Article 19 Close links
Article 20 Head office of insurance undertakings and reinsurance undertakings
Article 21 Policy conditions and scales of premiums
Article 22 Economic requirements of the market
Article 23 Scheme of operations
Article 24 Shareholders and members with qualifying holdings
Article 25 Refusal of authorisation
Article 25a Notification and publication of authorisations or withdrawals of authorisation
Article 26 Prior consultation of the authorities of other Member States
Chapter III Supervisory authorities and general rules (arts. 27-39)
Article 27 Main objective of supervision
Article 28 Financial stability and pro-cyclicality
Article 29 General principles of supervision
Article 30 Supervisory authorities and scope of supervision
Article 31 Transparency and accountability
Article 32 Prohibition of refusal of reinsurance contracts or retrocession contracts
Article 33 Supervision of branches established in another Member State
Article 34 General supervisory powers
Article 35 Information to be provided for supervisory purposes
Article 36 Supervisory review process
Article 37 Capital add-on
Article 38 Supervision of outsourced functions and activities
Article 39 Transfer of portfolio
Chapter IV Conditions governing business (arts. 40-72)
Section 1 Responsibility of the administrative, management or supervisory body (art. 40)
Article 40 Responsibility of the administrative, management or supervisory body
Section 2 System of governance (arts. 41-50)
Article 41 General governance requirements
Article 42 Fit and proper requirements for persons who effectively run the undertaking or have other key functions
Article 43 Proof of good repute
Article 44 Risk management
Article 45 Own risk and solvency assessment
Article 46 Internal control
Article 47 Internal audit
Article 48 Actuarial function
Article 49 Outsourcing
Article 50 Delegated acts and regulatory technical standards
Section 3 Public disclosure (arts. 51-56)
Article 51 Report on solvency and financial condition: contents
Article 52 Information for and reports by the European Insurance and Occupational Pensions Authority
Article 53 Report on solvency and financial condition: applicable principles
Article 54 Report on solvency and financial condition: updates and additional voluntary information
Article 55 Report on solvency and financial condition: policy and approval
Article 56 Solvency and financial condition report: delegated acts and implementing technical standards
Section 4 Qualifying holdings (arts. 57-63)
Article 57 Acquisitions
Article 58 Assessment period
Article 59 Assessment
Article 60 Acquisitions by regulated financial undertakings
Article 61 Information to the supervisory authority by the insurance or reinsurance undertaking
Article 62 Qualifying holdings, powers of the supervisory authority
Article 63 Voting rights
Section 5 Professional secrecy, exchange of information and promotion of supervisory convergence (arts. 64-71)
Article 64 Professional secrecy
Article 65 Exchange of information between supervisory authorities of Member States
Article 65a Cooperation with EIOPA
Article 66 Cooperation agreements with third countries
Article 67 Use of confidential information
Article 67a European Parliament powers of investigation
Article 68 Exchange of information with other authorities
Article 69 Disclosure of information to government administrations responsible for financial legislation
Article 70 Transmission of information to central banks, monetary authorities, payment systems overseers and the European Systemic Risk Board
Article 71 Supervisory convergence
Section 6 Duties of auditors (art. 72)
Article 72 Duties of auditors
Chapter V Pursuit of life and non-life insurance activity (arts. 73-74)
Article 73 Pursuit of life and non-life insurance activity
Article 74 Separation of life and non-life insurance management
Chapter VI Rules relating to the valuation of assets and liabilities, technical provisions, own funds, Solvency Capital Requirement, Minimum Capital Requirement and investment rules (arts. 75-135)
Section 1 Valuation of assets and liabilities (art. 75)
Article 75 Valuation of assets and liabilities
Section 2 Rules relating to technical provisions (arts. 76-86)
Article 76 General provisions
Article 77 Calculation of technical provisions
Article 77a Extrapolation of the relevant risk-free interest rate term structure
Article 77b Matching adjustment to the relevant risk-free interest rate term structure
Article 77c Calculation of the matching adjustment
Article 77d Volatility adjustment to the relevant risk-free interest rate term structure
Article 77e Technical information produced by the European Insurance and Occupational Pensions Authority
Article 77f Review of long-term guarantees measures and measures on equity risk
Article 78 Other elements to be taken into account in the calculation of technical provisions
Article 79 Valuation of financial guarantees and contractual options included in insurance and reinsurance contracts
Article 80 Segmentation
Article 81 Recoverables from reinsurance contracts and special purpose vehicles
Article 82 Data quality and application of approximations, including case-by-case approaches, for technical provisions
Article 83 Comparison against experience
Article 84 Appropriateness of the level of technical provisions
Article 85 Increase of technical provisions
Article 86 Delegated acts and regulatory and implementing technical standards
Section 3 Own funds (arts. 87-99)
Subsection 1 Determination of own funds (arts. 87-92)
Article 87 Own funds
Article 88 Basic own funds
Article 89 Ancillary own funds
Article 90 Supervisory approval of ancillary own funds
Article 91 Surplus funds
Article 92 Delegated acts and regulatory and implementing technical standards
Subsection 2 Classification of own funds (arts. 93-97)
Article 93 Characteristics and features used to classify own funds into tiers
Article 94 Main criteria for the classification into tiers
Article 95 Classification of own funds into tiers
Article 96 Classification of specific insurance own-fund items
Article 97 Delegated acts and regulatory technical standards
Subsection 3 Eligibility of own funds (arts. 98-99)
Article 98 Eligibility and limits applicable to Tiers 1, 2 and 3
Article 99 Delegated acts on the eligibility of own funds
Section 4 Solvency capital requirement (arts. 100-127)
Subsection 1 General provisions for the solvency capital requirement using the standard formula or an internal model (arts. 100-102)
Article 100 General provisions
Article 101 Calculation of the Solvency Capital Requirement
Article 102 Frequency of calculation
Subsection 2 Solvency capital requirement standard formula (arts. 103-111)
Article 103 Structure of the standard formula
Article 104 Design of the Basic Solvency Capital Requirement
Article 105 Calculation of the Basic Solvency Capital Requirement
Article 106 Calculation of the equity risk sub-module: symmetric adjustment mechanism
Article 107 Capital requirement for operational risk
Article 108 Adjustment for the loss-absorbing capacity of technical provisions and deferred taxes
Article 109 Simplifications in the standard formula
Article 109a Harmonised technical inputs to standard formula
Article 110 Significant deviations from the assumptions underlying the standard formula calculation
Article 111 Delegated acts and regulatory and implementing technical standards concerning Articles 103 to 109
Subsection 3 Solvency capital requirement full and partial internal models (arts. 112-127)
Article 112 General provisions for the approval of full and partial internal models
Article 113 Specific provisions for the approval of partial internal models
Article 114 Delegated acts and implementing technical standards concerning the Solvency Capital Requirement internal models
Article 115 Policy for changing the full and partial internal models
Article 116 Responsibilities of the administrative, management or supervisory bodies
Article 117 Reversion to the standard formula
Article 118 Non-compliance of the internal model
Article 119 Significant deviations from the assumptions underlying the standard formula calculation
Article 120 Use test
Article 121 Statistical quality standards
Article 122 Calibration standards
Article 123 Profit and loss attribution
Article 124 Validation standards
Article 125 Documentation standards
Article 126 External models and data
Article 127 Delegated acts concerning Articles 120 to 126
Section 5 Minimum capital requirement (arts. 128-131)
Article 128 General provisions
Article 129 Calculation of the Minimum Capital Requirement
Article 130 Delegated acts
Article 131 Transitional arrangements regarding compliance with the Minimum Capital Requirement
Section 6 Investments (arts. 132-135)
Article 132 Prudent person principle
Article 133 Freedom of investment
Article 134 Localisation of assets and prohibition of pledging of assets
Article 135 Delegated acts and regulatory technical standards concerning qualitative requirements
Chapter VII Insurance and reinsurance undertakings in difficulty or in an irregular situation (arts. 136-144)
Article 136 Identification and notification of deteriorating financial conditions by the insurance and reinsurance undertaking
Article 137 Non-Compliance with technical provisions
Article 138 Non-Compliance with the Solvency Capital Requirement
Article 139 Non-Compliance with the Minimum Capital Requirement
Article 140 Prohibition of free disposal of assets located within the territory of a Member State
Article 141 Supervisory powers in deteriorating financial conditions
Article 142 Recovery plan and finance scheme
Article 143 Delegated acts and regulatory technical standards concerning Article 138(4)
Article 144 Withdrawal of authorisation
Chapter VIII Right of establishment and freedom to provide services (arts. 145-161)
Section 1 Establishment by insurance undertakings (arts. 145-146)
Article 145 Conditions for branch establishment
Article 146 Communication of information
Section 2 Freedom to provide services: by insurance undertakings (arts. 147-152)
Subsection 1 General provisions (arts. 147-149)
Article 147 Prior notification to the home Member State
Article 148 Notification by the home Member State
Article 149 Changes in the nature of the risks or commitments
Subsection 2 Third party motor vehicle liability (arts. 150-152)
Article 150 Compulsory insurance on third party motor vehicle liability
Article 151 Non-discrimination of persons pursuing claims
Article 152 Representative
Section 2A Notification and collaboration platforms (arts. 152a-152b)
Article 152a Notification
Article 152b Collaboration platforms
Section 3 Competencies of the supervisory authorities of the host member state (arts. 153-158)
Subsection 1 Insurance (arts. 153-157)
Article 153 Language
Article 154 Prior notification and prior approval
Article 155 Insurance undertakings not complying with the legal provisions
Article 156 Advertising
Article 157 Taxes on premiums
Subsection 2 Reinsurance (art. 158)
Article 158 Reinsurance undertakings not complying with the legal provisions
Section 4 Statistical information (art. 159)
Article 159 Statistical information on cross-border activities
Section 5 Treatment of contracts of branches in winding-up proceedings (arts. 160-161)
Article 160 Winding-up of insurance undertakings
Article 161 Winding-up of reinsurance undertakings
Chapter IX Branches established within the community and belonging to insurance or reinsurance undertakings with head offices situated outside the community (arts. 162-175)
Section 1 Taking-up of business (arts. 162-171)
Article 162 Principle of authorisation and conditions
Article 163 Scheme of operations of the branch
Article 164 Transfer of portfolio
Article 165 Technical provisions
Article 166 Solvency Capital Requirement and Minimum Capital Requirement
Article 167 Advantages to undertakings authorised in more than one Member State
Article 168 Accounting, prudential and statistical information and undertakings in difficulty
Article 169 Separation of non-life and life business
Article 170 Withdrawal of authorisation for undertakings authorised in more than one Member State
Article 171 Agreements with third countries
Section 2 Reinsurance (arts. 172-175)
Article 172 Equivalence in relation to reinsurance undertakings
Article 173 Prohibition of pledging of assets
Article 174 Principle and conditions for conducting reinsurance activity
Article 175 Agreements with third countries
Chapter X Subsidiaries of insurance and reinsurance undertakings governed by the laws of a third country and acquisitions of holdings by such undertakings (arts. 176-177)
Article 176 Information from Member States to the Commission and EIOPA
Article 177 Third-country treatment of Community insurance and reinsurance undertakings
Title II Specific Provisions for Insurance and Reinsurance (arts. 178-211)
Chapter I Applicable law and conditions of direct insurance contracts (arts. 178-186)
Section 1 Applicable law (art. 178)
Article 178 Applicable Law
Section 2 Compulsory insurance (art. 179)
Article 179 Related obligations
Section 3 General good (art. 180)
Article 180 General good
Section 4 Conditions of insurance contracts and scales of premiums (arts. 181-182)
Article 181 Non-life insurance
Article 182 Life insurance
Section 5 Information for policy holders (arts. 183-186)
Subsection 1 Non-life insurance (arts. 183-184)
Article 183 General Information for policy holders
Article 184 Additional information in the case of non-life insurance offered under the right of establishment or the freedom to provide services
Subsection 2 Life insurance (arts. 185-186)
Article 185 Information for policy holders
Article 186 Cancellation period
Chapter II Provisions specific to non-life insurance (arts. 187-207)
Section 1 General provisions (arts. 187-189)
Article 187 Policy Conditions
Article 188 Abolition of monopolies
Article 189 Participation in national guarantee schemes
Section 2 Community co-insurance (arts. 190-196)
Article 190 Community co-insurance operations
Article 191 Participation in Community co-insurance
Article 192 Technical provisions
Article 193 Statistical data
Article 194 Treatment of co-insurance contracts in winding-up proceedings
Article 195 Exchange of information between supervisory authorities
Article 196 Cooperation on implementation
Section 3 Assistance (art. 197)
Article 197 Activities similar to tourist assistance
Section 4 Legal expenses insurance (arts. 198-205)
Article 198 Scope of this Section
Article 199 Separate contracts
Article 200 Management of claims
Article 201 Free choice of lawyer
Article 202 Exception to the free choice of lawyer
Article 203 Arbitration
Article 204 Conflict of interest
Article 205 Abolition of specialisation of legal expenses insurance
Section 5 Health insurance (art. 206)
Article 206 Health insurance as an alternative to social security
Section 6 Insurance against accidents at work (art. 207)
Article 207 Compulsory insurance against accidents at work
Chapter III Provisions specific to life insurance (arts. 208-209)
Article 208 Prohibition on compulsory ceding of part of underwriting
Article 209 Premiums for new business
Chapter IV Rules specific to reinsurance (arts. 210-211)
Article 210 Finite reinsurance
Article 211 Special purpose vehicles
Title III Supervision of Insurance and Reinsurance Undertakings in a Group (arts. 212-266)
Chapter I Group supervision: definitions, cases of application, scope and levels (arts. 212-217)
Section 1 Definitions (art. 212)
Article 212 Definitions
Section 2 Cases of application and scope (arts. 213-214)
Article 213 Cases of application of group supervision
Article 214 Scope of group supervision
Section 3 Levels (arts. 215-217)
Article 215 Ultimate parent undertaking at Community level
Article 216 Ultimate parent undertaking at national level
Article 217 Parent undertaking covering several Member States
Chapter II Financial position (arts. 218-246)
Section 1 Group solvency (arts. 218-243)
Subsection 1 General provisions (arts. 218-219)
Article 218 Supervision of group solvency
Article 219 Frequency of calculation
Subsection 2 Choice of calculation method and general principles (arts. 220-224)
Article 220 Choice of method
Article 221 Inclusion of proportional share
Article 222 Elimination of double use of eligible own funds
Article 223 Elimination of the intra-group creation of capital
Article 224 Valuation
Subsection 3 Application of the calculation methods (arts. 225-229)
Article 225 Related insurance and reinsurance undertakings
Article 226 Intermediate insurance holding companies
Article 227 Equivalence concerning related third-country insurance and re-insurance undertakings
Article 228 Related credit institutions, investment firms and financial institutions
Article 229 Non-availability of the necessary information
Subsection 4 Calculation methods (arts. 230-234)
Article 230 Method 1 (Default method): Accounting consolidation-based method
Article 231 Group internal model
Article 232 Group capital add-on
Article 233 Method 2 (Alternative method): Deduction and aggregation method
Article 234 Delegated acts concerning Articles 220 to 229 and 230 to 233
Subsection 5 Supervision of group solvency for insurance and reinsurance undertakings that are subsidiaries of an insurance holding company (art. 235)
Article 235 Group solvency of an insurance holding company or a mixed financial holding company
Subsection 6 Supervision of group solvency for groups with centralised risk management (arts. 236-243)
Article 236 Subsidiaries of an insurance or reinsurance undertaking: conditions
Article 237 Subsidiaries of an insurance or reinsurance undertaking: decision on the application
Article 238 Subsidiaries of an insurance or reinsurance undertaking: determination of the Solvency Capital Requirement
Article 239 Subsidiaries of an insurance or reinsurance undertaking: non-compliance with the Solvency and Minimum Capital Requirements
Article 240 Subsidiaries of an insurance or reinsurance undertaking: end of derogations for a subsidiary
Article 241 Subsidiaries of an insurance or reinsurance undertaking: delegated acts
Article 242 Review
Article 243 Subsidiaries of an insurance holding company and mixed financial holding company
Section 2 Risk concentration and intra-group transactions (arts. 244-245)
Article 244 Supervision of risk concentration
Article 245 Supervision of intra-group transactions
Section 3 Risk management and internal control (art. 246)
Article 246 Supervision of the system of governance
Chapter III Measures to facilitate group supervision (arts. 247-259)
Article 247 Group Supervisor
Article 248 Rights and duties of the group supervisor and the other supervisors College of supervisors
Article 249 Cooperation and exchange of information between supervisory authorities
Article 250 Consultation between supervisory authorities
Article 251 Requests from the group supervisor to other supervisory authorities
Article 252 Cooperation with authorities responsible for credit institutions and investment firms
Article 253 Professional secrecy and confidentiality
Article 254 Access to information
Article 255 Verification of information
Article 256 Group solvency and financial condition report
Article 256a Group structure
Article 257 Administrative, management or supervisory body of insurance holding companies and mixed financial holding companies
Article 258 Enforcement measures
Article 259 Reporting of EIOPA
Chapter IV Third countries (arts. 260-264)
Article 260 Parent undertakings outside the Union: verification of equivalence
Article 261 Parent undertakings outside the Community: equivalence
Article 262 Parent undertakings registered in a third country: absence of equivalence
Article 263 Parent undertakings outside the Community: levels
Article 264 Cooperation with third-country supervisory authorities
Chapter V Mixed-activity insurance holding companies (arts. 265-266)
Article 265 Intra-group transactions
Article 266 Cooperation with third countries
Title IV Reorganisation and Winding-up of Insurance Undertakings (arts. 267-296)
Chapter I Scope and definitions (arts. 267-268)
Article 267 Scope of this Title
Article 268 Definitions
Chapter II Reorganisation measures (arts. 269-272)
Article 269 Adoption of reorganisation measures applicable law
Article 270 Information to the supervisory authorities
Article 271 Publication of decisions on reorganisation measures
Article 272 Information to known creditors right to lodge claims
Chapter III Winding-up proceedings (arts. 273-284)
Article 273 Opening of winding-up proceedings information to the supervisory authorities
Article 274 Applicable law
Article 275 Treatment of insurance claims
Article 276 Special register
Article 277 Subrogation to a guarantee scheme
Article 278 Representation of preferential claims by assets
Article 279 Withdrawal of the authorisation
Article 280 Publication of decisions on winding-up proceedings
Article 281 Information to known creditors
Article 282 Right to lodge claims
Article 283 Languages and form
Article 284 Regular information to the creditors
Chapter IV Common provisions (arts. 285-296)
Article 285 Effects on certain contracts and rights
Article 286 Rights in rem of third parties
Article 287 Reservation of title
Article 288 Set-off
Article 289 Regulated markets
Article 290 Detrimental acts
Article 291 Protection of third-party purchasers
Article 292 Lawsuits pending
Article 293 Administrators and liquidators
Article 294 Registration in a public register
Article 295 Professional secrecy
Article 296 Treatment of branches of third-country insurance undertakings
Title V Other Provisions (arts. 297-304)
Article 297 Right to apply to the courts
Article 298 Cooperation between the Member States and the Commission
Article 299 Euro
Article 300 Revision of amounts expressed in euro
Article 301 Committee procedure
Article 301a Exercise of the delegation
Article 301b Sunrise provision for regulatory technical standards
Article 302 Notifications submitted prior to entry into force of the laws, regulations and administrative provisions necessary to comply with Articles 57 to 63
Article 303 Amendments to Directive 2003/41/EC
Article 304 Duration-based equity risk sub-module
Title VI Transitional and final provisions (arts. 305-312)
Chapter I Transitional provisions (arts. 305-308e)
Section 1 Insurance (arts. 305-306)
Article 305 Derogations and abolition of restrictive measures
Article 306 Rights acquired by existing branches and insurance undertakings
Section 2 Reinsurance (arts. 307-308)
Article 307 Transitional period for Articles 57(3) and 60(6) of Directive 2005/68/EC
Article 308 Right acquired by existing reinsurance undertakings
Section 3 Insurance and reinsurance (arts. 308a-308e)
Article 308a Phasing-in
Article 308b Transitional measures
Article 308c Transitional measure on the risk-free interest rates
Article 308d Transitional measure on technical provisions
Article 308e Phasing-in plan on the transitional measures on risk-free interest rates and on technical provisions
Chapter II Final provisions (arts. 309-312)
Article 309 Transposition
Article 310 Repeal
Article 310a Staff and resources of EIOPA
Article 311 Entry into force
Article 312 Addressees
Annex I Classes of Non-Life Insurance
Annex I, Part A Classification of risks according to classes of insurance
Annex I, Part B Description of authorisations granted for more than one class of insurance
Annex II Classes of Life Insurance
Annex III Legal Forms of Undertakings
Annex III, Part A Forms of non-life insurance undertaking:
Annex III, Part B Forms of life insurance undertaking:
Annex III, Part C Forms of reinsurance undertaking:
Annex IV Solvency Capital Requirement (SCR) Standard Formula
Annex V Groups of Non-Life Insurance Classes for the Purposes of Article 159
Annex VI, Part A Repealed Directives with list of their successive amendments
Annex VI, Part B List of time-limits for transposition into national law (referred to in Article 310)
Annex VII Correlation Table
Version status: Entered into force | Document consolidation status: Updated to reflect all known changes
Version date: 6 January 2010 - onwards
1. The value of technical provisions shall be equal to the sum of a best estimate and a risk margin as set out in paragraphs 2 and 3.
2. The best estimate shall correspond to the probability-weighted average of future cash-flows, taking account of the time value of money (expected present value of future cash-flows), using the relevant risk-free interest rate term structure.
The calculation of the best estimate shall be based upon up-to-date and credible information and realistic assumptions and be performed using adequate, applicable and relevant actuarial and statistical methods.
The cash-flow projection used in the calculation of the best estimate shall take account of all the cash inand out-flows required to settle the insurance and reinsurance obligations over the lifetime thereof.
The best estimate shall be calculated gross, without deduction of the amounts recoverable from reinsurance contracts and special purpose vehicles. Those amounts shall be calculated separately, in accord
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