Commission Delegated Regulation (EU) 2015/35Show full title

Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (Text with EEA relevance)

Article 278U.K.Assessment of a significant deviation as regards adjustments to the relevant risk-free rate and transitional measures

1.[F1In] concluding that the risk profile of an insurance or reinsurance undertaking deviates significantly from the assumptions underlying the matching adjustment F2..., the volatility adjustment referred to in [F3Article 77d of Directive 2009/138/EC] or the transitional measures referred to in Article 308c and 308d of that Directive, supervisory authorities shall take into account all relevant factors including all of the following:

(a)the nature, type and size of the deviation;

(b)the likelihood and severity of any adverse impact on policyholders and beneficiaries;

(c)the level of sensitivity of the assumptions to which the deviation relates;

(d)the anticipated duration and volatility of the deviation over the duration of the deviation;

(e)the impact of the deviation on the Solvency Capital Requirement and own funds of the undertaking.

2.With respect to the matching adjustment and transitional measures and F4... the volatility adjustment, F5... where supervisory authorities have allowed an insurance or reinsurance undertaking to use one of these adjustments or transitional measures, they may impose a capital add-on F6... only in circumstances where the deviation from the assumptions underlying the adjustments or transitional measures is of a temporary nature and does not justify revoking the supervisory approval for the use of the adjustment or the transitional measure.

Textual Amendments