Nematrian
/

Market Consistency and WMC [16]

Go to: Summary | Previous | Next   
Bullet points include: Article 75: “Member States shall ensure that, unless otherwise stated, insurance and reinsurance undertakings value assets and liabilities as follows: (a) assets shall be valued at the amount for which they could be exchanged between knowledgeable willing parties in an arm’s length transaction; (b) liabilities shall be valued at the amount for which they could be transferred, or settled, between knowledgeable willing parties in an arm’s length transaction.” Insurance liabilities split between best estimate and risk margin. Article 77: “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.” Article 79: “When calculating technical provisions, insurance and reinsurance undertakings shall take account of the value of financial guarantees and any contractual options included in insurance and reinsurance policies.”

NAVIGATION LINKS
Contents | Prev | Next | Library

Desktop view | Switch to Mobile