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) (c. 35)

TITLE I VALUATION AND RISK-BASED CAPTAL REQUIREMENTS (PILLAR I), ENHANCED GOVERNANCE (PILLAR II) AND INCREASED TRANPARENCY (PILLAR III)

CHAPTER III RULES RELATING TO TECHNICAL PROVISIONS

SECTION 3 Methodologies to calculate technical provisions

Subsection 3 Cash flow projections for the calculation of the best estimate

Article 32 Contractual options and financial guarantees

When calculating the best estimate, insurance and reinsurance undertakings shall take into account all of the following:

(a)

all financial guarantees and contractual options included in their insurance and reinsurance policies;

(b)

all factors which may affect the likelihood that policy holders will exercise contractual options or realise the value of financial guarantees.