The European Insurance and Occupational Pensions Authority (EIOPA) has published the Underlying Assumptions in the standard formula for the Solvency Capital Requirement (SCR) calculation.
The paper aims to support supervisors and undertakings in application of the Solvency II Preparatory Guidelines on forward looking assessment of own risks (FLAOR).
EIOPA committed to develop this paper as a follow-up to its public consultation on Solvency II Preparatory Guidelines in 2013. Several stakeholders asked for a transparent and comprehensive guidance on how to fulfil the requirement to assess the deviation of their risk profile from the underlying assumptions in the FLAOR process, and EIOPA has acknowledged the need for such clarifications. Undertakings are requested to fulfil this assessment in their FLAOR from 2015 onwards.
The legal status of the document is similar to the Technical Specifications issued by EIOPA in April 2014. It reflects the content of the Solvency II and Omnibus II Directives as well as the available draft of the (Level 2) Delegated Acts.
Click here to access the relevant page at EIOPA website.