Insurance Quarterly Legal And Regulatory Update, April - June 2020

• Published date: 15 July 2020
• Law Firm: Dillon Eustace
• Author: Mr Andrew Bates, Keith Waine and Karen Jennings

1. SOLVENCY II

1.1 Implementing Regulation on technical information for calculation of technical provisions and basic own funds for Q2 2020 published in the Official Journal of the European Union

On 13 May 2020, the Commission Implementing Regulation (EU) 2020/641 which lays down technical information for the calculation of technical provisions and basic own funds for reporting from 31 March 2020 until 29 June 2020 under the Solvency II Directive (2009/138/EC) (Solvency II Directive) was published in the Official Journal of the European Union.

The Implementing Regulation sets out the technical information to be used by reinsurers and insurers when calculating technical provisions and basic own funds for reporting with reference dates in Q2 2020.

To ensure uniform conditions for insurers and reinsurers calculating technical provisions and basic own funds, the Solvency II Directive requires that technical information on relevant risk-free interest rate term structures, fundamental spreads for the calculation of the matching adjustment and volatility adjustments must be laid down for every reference date. In each case, the technical information is based on market data related to the end of the last month preceding the first reporting reference date to which the relevant Implementing Regulation applies.

The European Commission adopted the Implementing Regulation on 12 May...