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

CHAPTER IIIRULES RELATING TO TECHNICAL PROVISIONS

SECTION 6 Proportionality and simplifications

Article 58Simplified calculation of the risk margin

Without prejudice to Article 56, insurance and reinsurance undertakings may use simplified methods when they calculate the risk margin, including one or more of the following:

  1. (a)

    methods which use approximations of the amounts denoted by the terms SCR(t) referred to in Article 37(1);

  2. (b)

    methods which approximate the discounted sum of the amounts denoted by the terms SCR(t) as referred to in Article 37(1) without calculating each of those amounts separately.