18.6.2019 |
EN |
Official Journal of the European Union |
L 161/1 |
COMMISSION DELEGATED REGULATION (EU) 2019/981
of 8 March 2019
amending Delegated Regulation (EU) 2015/35 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)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (1) and in particular Article 35(9), point (a) of Article 50(1), Article 56, points (a) and (b) of Article 86(1), Article 97(1), points (a), (b), (c), (e), (f), (fa), (i), (j), (k) and (l) of Article 111(1), Article 211(2) and Article 234 thereof,
Whereas:
(1) |
Experience gained by insurance and reinsurance undertakings during the first years of application of Directive 2009/138/EC should be used to review the methods, assumptions and standard parameters when calculating the Solvency Capital Requirement standard formula. |
(2) |
The Commission proposal for a new Regulation establishing the InvestEU Programme (2) focusses on addressing EU-wide market failures and sub-optimal investment situations. That proposal includes the establishment of the InvestEU Advisory Hub that should support the development of a robust pipeline of investment projects and the InvestEU Portal that should provide investors with an easily accessible and user-friendly database of investment projects. InvestEU will thereby support investments in finance for small and medium-sized businesses in the form of bonds, loans or private equity as well as other long-term investments in equity. The standard formula for the calculation of the Solvency Capital Requirement does not provide for specific rules for investments in privately placed debt, private equity and long-term investments in equity. In light of the expected improvement in the accessibility of such investments by means of the InvestEU portal, such specific rules should be introduced. In addition, in light of the Action Plan on Building a Capital Markets Union of 30 September 2015, more investments in Europe should be encouraged and access to equity and debt funding for European small and medium-sized enterprises should be facilitated. The prudential treatment of private equity and privately placed debt should therefore be amended to remove unjustified barriers to investments in those asset classes. |
(3) |
In order to ensure a level playing field between economic operators active in the insurance sector and economic operators active in other financial sectors, some of the provisions applicable to insurance and reinsurance undertakings should be aligned with the provisions applicable to credit and financial institutions, to the extent that such an alignment is commensurate with their different business models. |
(4) |
Trade exposures to qualifying central counterparties (CCPs) benefit from the multilateral netting and loss-sharing mechanism provided by qualifying CCPs. Those trade exposures have lowered counterparty credit risk and should therefore be subject to lower own funds requirement than exposures to counterparties not benefiting from CCP mechanisms. In accordance with Article 111(1)(fa) of Directive 2009/138/EC, the calculation of counterparty default risk with the standard formula should treat trade exposures to qualifying CCPs in a manner that is consistent with the capital requirements for such exposures applicable to credit institutions and financial institutions. |
(5) |
In order to contribute to the Union's objective of long-term sustainable growth, investments by insurers in privately placed debt should be facilitated. To that end, criteria should be established that allow for the assignment to credit quality steps 2 or 3 of bonds and loans for which a credit assessment by a nominated ECAI is not available, on the basis of the insurance or reinsurance undertaking's own internal credit assessment. |
(6) |
Substantial changes in the data used for the determination of the technical information on the relevant risk-free interest rate term structures may lead to a situation where data sources that were used in the past are no longer available. Furthermore, improved data availability may render obsolete the techniques used for the determination of the technical information on the relevant risk-free interest rate term structures. A substantial change in market conditions may also necessitate a re-assessment of parameters, including the ultimate forward rate, the starting point for the extrapolation of risk-free interest rates or the convergence period to the ultimate forward rate. Conditions should therefore be laid down to assess whether potential changes to data and techniques used for the determination of the technical information on the relevant risk-free interest rate term structure are commensurate with the objectives of transparency, prudence, reliability and consistency of the methods to determine the technical information on the relevant risk-free rate term structure over time. To this end, EIOPA should submit to the Commission an assessment of the impact of modified techniques, data specifications or parameters and the proportionality of the modification with respect to the substantial change in the data. |
(7) |
The objective of transparent, prudent, reliable and consistent methods to determine the technical information on the relevant risk-free interest rate term structures over time should also apply at the level of the components, and in particular, the volatility adjustment. In order to ensure transparency, prudence, reliability and consistency over time, the method to determine the technical information on the volatility adjustment applied by the European Insurance and Occupational Pensions Authority (EIOPA), in particular the activation of the country component as set out in Article 77d(4) of Directive 2009/138/EC, should be re-examined where evidence shows that the method fails to meet the objectives, and as part of the Commission review under Article 77f(3) of Directive 2009/138/EC. |
(8) |
Own–fund items in the form of paid-in subordinated mutual member accounts, paid-in preference shares and the related share premium account, and paid in subordinated liabilities, may provide for a partial principal loss absorbency mechanism for cases where the Solvency Capital Requirement is breached during three consecutive months. Criteria should be established that specify to what extent such items qualify as Tier 1 own funds. |
(9) |
Losses of basic own funds due to tax effects when the principal loss-absorbing mechanism is triggered should be avoided. Insurance and reinsurance undertakings should therefore be able to request a waiver of the application of that mechanism. Before granting the waiver however, supervisory authorities should assess whether there is a high and credible likelihood that the tax effects of the mechanism could significantly weaken the solvency position of an insurance or reinsurance undertaking. |
(10) |
A level playing field between economic operators in the insurance sector and in other financial sectors should be ensured. Insurance and reinsurance undertakings should therefore have the possibility, subject to prior supervisory approval, to repay or redeem an own-fund item within the first five years after the date of its issuance in case there is an unexpected change in the regulatory classification of the own-fund item which is likely to result in the exclusion of that item from the own funds, or in case there is an unexpected change in the applicable tax treatment of that item. |
(11) |
The look-through approach should ensure that the risks the insurance or reinsurance undertaking is exposed to are properly captured, irrespective of the undertaking's investment structures. That approach should therefore be applied to undertakings related to that insurance or reinsurance undertaking, that have as their main purpose the holding or management of assets on behalf of that insurance or reinsurance undertaking. |
(12) |
Where the look-through approach cannot be applied to a collective investment undertaking or investment packaged as funds, insurance or reinsurance undertakings should be allowed to use a simplified approach based on the last reported asset allocation of the collective investment undertaking or fund, provided that that simplified approach is proportionate to the nature, scale and complexity of the risks concerned. |
(13) |
The lapse risk sub-modules require complex calculations based on the level of single insurance policies. Where such complexity is not proportionate to the nature, scale and complexity of the risks falling under those sub-modules, it should be possible to base the calculations for those sub-modules on groupings of insurance policies, rather than on single insurance policies, unless such groupings would lead to a material error. |
(14) |
The calculation of natural catastrophe risk with the standard formula should account for the nature, scale and complexity of the exposure of the insurance or reinsurance undertakings to that risk. The calculation of natural catastrophe risk with the standard formula requires that insurance and reinsurance undertakings map their sum insured in risk zones. Not all insurance and reinsurance undertakings have the information on risk zone level required for that calculation in their internal systems, and for those undertakings it may be costly to produce this information. Those undertakings should therefore be able to base their calculation on groupings of risk zones where such grouping is well substantiated and proportionate to the exposure. |
(15) |
The calculation of the capital requirement for the fire risk sub-module of the standard formula requires that insurance and reinsurance undertakings identify the largest fire risk concentration. In order to limit the calculation burden, insurance or reinsurance undertakings should be able to restrict their identification process for the largest fire risk concentration to the surroundings of their largest fire risk exposures, provided that that approach is proportionate to the nature, scale and complexity of the exposure to fire risk of the insurance or reinsurance undertakings. |
(16) |
The simplified calculations of the capital requirement for life and health mortality risk sub-modules of the standard formula should be amended to reflect that the capital at risk of insurance policies may vary over time. |
(17) |
The cost for acquiring ratings for the calculation of the Solvency Capital Requirement using the standard formula should be proportionate to the nature, scale and complexity of the associated asset risk. Insurance and reinsurance undertakings that have nominated an external credit rating agency should therefore be able to use a simplified calculation for those parts of the debt portfolio for which external ratings are not provided by the that external credit rating agency. |
(18) |
The standard formula calculation of the Solvency Capital Requirement for counterparty default risk requires insurance and reinsurance undertakings to take into account the share of the counterparty's assets that are subject to collateral arrangements. A disproportionate burden in the calculation with the standard formula should be avoided. Insurance and reinsurance undertakings using the standard formula for the calculation of the Solvency Capital Requirement for counterparty default risk should therefore be able to calculate the Solvency Capital Requirement for counterparty default risk on the basis of the assumption that more than 60 % of the counterparty's assets are subject to collateral arrangements. |
(19) |
Insurance and reinsurance undertakings using the standard formula for the calculation of the Solvency Capital Requirement for counterparty default risk have to use a specific formula for the calculation of the capital requirement for counterparty default risk on type 1 exposures where the standard deviation of the loss distribution of type 1 exposures is lower than 7 %. Disproportionate burden when calculating that requirement should be avoided. Insurance and reinsurance undertakings should therefore be able to calculate the capital requirement for counterparty default risk on type 1 exposures using the same formula that is applied where the standard deviation of the loss distribution for type 1 exposures is between 7 % and 20 %. |
(20) |
The calculation of the risk mitigating effect on underwriting risk is complex and may be a disproportionate burden for insurance and reinsurance undertakings operating in non-life lines of business. It is therefore appropriate to enable insurance and reinsurance undertakings to use a simplified formula, provided that the use of that simplified formula is proportionate to the nature scale and complexity of the undertakings' counterparty risk profile. |
(21) |
The risk charge for premiums for future contracts should not unduly penalise contracts with an initial term of more than one year in order to take into account the lower risk associated to future premiums from contracts with longer terms. Therefore, for future contracts the term of which is more than one year, the volume measure for non-life and NSLT health premium and reserve risk should account for only 30 % of future premiums. |
(22) |
The actual risk exposure of the undertaking in the calculation of the Solvency Capital Requirement for natural catastrophe risk should be reflected in the calculation of the Solvency Capital Requirement with the standard formula. The calculation of the Solvency Capital Requirement for natural catastrophe risk with the standard formula should therefore take into account contractual limits for the compensation for natural catastrophes. |
(23) |
The calculation of the Solvency Capital Requirement for man-made catastrophe risk should reflect the risks that insurance and reinsurance undertakings are exposed to. The scenario-based calculations of that requirement for marine, aviation and fire risk should therefore be based on the largest exposures, after deduction of amounts recoverable from reinsurance or special purpose vehicles. |
(24) |
It is not appropriate to apply the tanker collision scenario of the marine risk submodule to pleasure craft or rigid inflatable boats. That scenario should therefore only be applicable to vessels with a minimum sum insured of at least EUR 250 000. |
(25) |
Direct investments by insurers in unlisted equity can contribute to the Union's objective of long-term sustainable growth. Those investments should therefore be facilitated. When calculating the capital requirement for equity risk with the standard formula, portfolios of high-quality unlisted equity investments should therefore be able to benefit from the same treatment as equities that are listed in regulated markets. Criteria should be established to ensure that a high-quality unlisted equity portfolio has a sufficiently small systematic risk. |
(26) |
Insurers have an important role as long-term investors and equity investments are important for the financing of the real economy. Long-term equity investments by insurance and reinsurance undertakings should therefore be encouraged by aligning the treatment of long-term equity investments and strategic equity investments when calculating the Solvency Capital Requirement with the standard formula including the correlation matrices. To ensure the long-term character of the investments, a portfolio of long-term equity investments and other assets matching a portfolio of clearly identified insurance or reinsurance obligations should be introduced within the equity risk sub-module. To avoid regulatory arbitrage, the portfolio of assets and the portfolio of obligations should have similar values, and each of them should not represent more than half of the total size of the balance sheet of the insurance or reinsurance undertaking. |
(27) |
Individual equities listed in the EEA and investments via certain types of funds should be treated in the same manner. Insurance and reinsurance undertakings should therefore be allowed to apply the rules applicable to long-term investments at the level of qualifying social entrepreneurship funds, qualifying venture capital funds, closed-ended and unleveraged alternative investment funds or European long-term investment funds, provided that the fund manager is authorised in the EEA. |
(28) |
The calculation of the capital requirement for the spread risk sub-module with the standard formula should not impede insurance or reinsurance undertakings from investing in high-quality private placements, which are often unrated. An insurance or reinsurance undertaking may have concluded an agreement with a credit institution or investment firm to co-invest in bonds and loans for which a credit assessment by a nominated ECAI is not available. In that case, the insurance or reinsurance undertaking should be allowed to use the results of the approved internal ratings based approach of that credit institution or investment firm to calculate the Solvency Capital Requirement, provided that that credit institution or investment firm has its head office in the European Economic Area. The same should apply where an insurance or reinsurance undertaking has concluded an agreement with another insurance or reinsurance undertaking that uses an approved internal model in accordance with Article 100 of Directive 2009/138/EC. |
(29) |
The legislation covering the financial sector should be consistent, while taking into account differences in the business model of the sectors, diverging elements in the determination of capital requirements, or other factors. Therefore, the rules for insurance and reinsurance undertakings for the recognition of guarantees that are issued by regional governments and local authorities should be aligned with the rules for credit institutions and investment firms. |
(30) |
Derivatives expose insurance and reinsurance undertakings to counterparty default risk, irrespective of whether those derivatives are held for hedging or speculation. All derivatives should therefore be treated as type 1 exposures in the counterparty default risk module of the standard formula. |
(31) |
Discrepancies in the sequence of the calculations for the capital requirement for market risk concentrations with the standard formula should be avoided. Individual exposures should therefore first be mapped to credit quality steps and relative excess exposure thresholds, and risk factors should subsequently be applied at the level of single name exposures. |
(32) |
Insurance and reinsurance undertakings should not use overly optimistic assumptions when projecting future taxable profits after an exceptional loss scenario. Therefore, when calculating with the standard formula the loss-absorbing capacity of deferred taxes, insurance and reinsurance undertakings should take into account their financial and solvency position after the instantaneous loss, and the increased uncertainty regarding the projection of future taxable profits. Furthermore, the assumptions for projecting future taxable profits following the instantaneous loss, including the assumed rates of return on the insurance or reinsurance undertaking's investments, should not be more favourable than the assumptions applied to the valuation of deferred taxes on the balance sheet, and the projected total amount of new business should not exceed that of the business planning. Insurance and reinsurance undertakings should only be allowed to assume higher returns than those implied in the relevant interest rate term structure where they can demonstrate that those returns will be realised after the instantaneous loss. |
(33) |
The calculation of the Solvency Capital Requirement with the standard formula should reflect developments in risk management practices, in particular on the use of risk mitigation techniques. Insurance and reinsurance undertakings should therefore be able to take into account the effect of risk-mitigation techniques, including where those techniques are replaced with a similar arrangement when they expire or where those techniques are adjusted to reflect changes in the exposures covered, provided that such replacement or adjustment is limited to once per week. The standard formula should also allow for netting arrangements between derivatives and hedging strategies where several contractual arrangements together have the effect of a risk mitigation technique. Possible deviations between the risk mitigating effect reflected in the standard formula on the one hand and the actual risk mitigation effect on the other, and an assessment of basis risk, should be included in the undertakings own risk and solvency assessment. |
(34) |
Insurance or reinsurance undertakings should not be disproportionately penalised where a reinsurance counterparty ceases to comply with its Solvency Capital Requirement while still complying with the Minimum Capital Requirement. Insurance and reinsurance undertakings should therefore be allowed, for a period of up to six months, to partially take into account the risk-mitigating effect of reinsurance arrangements entered into with that reinsurance counterparty. Where a reinsurance counterparty ceases to comply with its Minimum Capital Requirement, the insurance or reinsurance undertaking should no longer take into account any risk-mitigating effect from reinsurance arrangements entered into with that reinsurance counterparty. |
(35) |
Stop loss reinsurance contracts should receive a similar treatment as excess of loss reinsurance contracts in the calculation of the Solvency Capital Requirement with the standard formula. Insurance and reinsurance undertakings should therefore be able to take into account the risk mitigation provided by stop loss reinsurance contracts in the Solvency Capital Requirement standard formula calculation with undertaking-specific parameters by laying down a standardised method to calculate an undertaking-specific parameter to replace the standard parameter for non-proportional reinsurance. |
(36) |
The loss-absorbing capacity of deferred taxes has a significant impact on the solvency position of insurance and reinsurance undertakings. The administrative, management or supervisory body of insurance or reinsurance undertakings should therefore adopt a risk-management policy related to deferred taxes, which takes into account the loss-absorbing capacity of those deferred taxes. In particular, that policy should set out the responsibilities for assessing the underlying assumptions applied to the projection of future taxable profits. |
(37) |
The calculation of the Solvency Capital Requirement at solo and group level should be consistent. Where the look-through approach is applied at solo level to collective investment undertakings, or to investments packaged as funds which are related undertakings of a participating insurance or reinsurance undertaking, the look-through approach should also be applied at group level. Where those collective investment undertakings or funds are subsidiaries of insurance or reinsurance groups, the calculation of the Solvency Capital Requirement should be based on the assumption of full diversification with other consolidated assets and liabilities. |
(38) |
The calculation of the capital requirement for currency risk for a group should reflect the specific economic situation of that group, in particular in cases where the insurance or reinsurance activities are denominated in different currencies. For that reason, participating insurance and reinsurance undertakings, insurance holding companies or mixed financial holding companies should be able to select a reference currency other than the one used for the preparation of the consolidated accounts where the currency risk in the consolidated group Solvency Capital Requirement is calculated on the basis of the standard formula. That choice should be based on objective criteria, such as the currency in which a material amount of the group's technical provisions or own funds are denominated. |
(39) |
The standard formula calculation for the non-life premium and reserve risk sub-modules, the health premium and reserve risk sub-modules, and for the natural catastrophe risk sub-module, should be modified to reflect the recent empirical evidence on premium provisions and provisions for claims outstanding. |
(40) |
The complexity of the calculation of the capital requirement for mass accident and accident concentration should be proportionate to the nature, scale and complexity of the risk undertakings offering health insurance are exposed to. The event type referring to disability that lasts 10 years caused by an accident should therefore be removed from that calculation. |
(41) |
Commission Delegated Regulation (EU) 2015/35 (3) contains a number of typographical errors, such as wrong internal cross-references, which should be corrected. |
(42) |
In order to avoid disruptions in the non-life and health insurance market, in particular for insurance and reinsurance undertakings operating only in one line of business, sufficient time should be given to enable insurance and reinsurance undertakings to prepare for the changes in the calculation of the non-life and health premium and reserve risk. Those changes should therefore not apply before 1 January 2020. |
(43) |
Delegated Regulation (EU) 2015/35 should therefore be amended accordingly, |
HAS ADOPTED THIS REGULATION:
Article 1
Amendments to Delegated Regulation (EU) 2015/35
Delegated Regulation (EU) 2015/35 is amended as follows:
(1) |
in Article 1, the following points 59 to 63 are added:
(*1) Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1).’;" |
(2) |
Article 18 is amended as follows:
|
(3) |
Article 43 is replaced by the following: ‘Article 43 General provisions 1. The rates of the basic risk-free interest rate term structure shall meet all of the following criteria:
The rates of the relevant risk-free interest rate term structure shall be calculated separately for each currency and maturity, based on all information and data relevant for that currency and that maturity. 2. The techniques, data specifications and parameters used for determining the technical information on the relevant risk-free interest rate term structure referred to in Article 77e(1) of Directive 2009/138/EC, including the ultimate forward rate, the last maturity for which the relevant risk-free interest rate term structure is not being extrapolated and the duration of its convergence towards the ultimate forward rate, shall be transparent, prudent, reliable, objective and consistent over time. 3. EIOPA shall inform the Commission of any substantial change in the data used for determining the technical information on the relevant risk-free interest term structure. A substantial change shall mean any change which renders the techniques, data specifications or parameters invalid, including the ultimate forward rate, the last maturity for which the basic risk-free interest rate term structure is not being extrapolated and the duration of its convergence towards the ultimate forward rate. 4. In the event of a substantial change in the data as referred to in paragraph 3, EIOPA may submit to the Commission a proposal containing such modifications to the techniques, data specifications or parameters as are needed to address the invalidity and are proportionate to the substantial change in question. That proposal shall be accompanied by an assessment of the appropriateness and impact of those proposed modifications. 5. A technique, data specification or parameter, including the ultimate forward rate, the last maturity for which the basic risk-free interest rate term structure is not being extrapolated and the duration of its convergence towards the ultimate forward rate, shall be modified by EIOPA at the request of the Commission to ensure that the rates of the relevant risk-free interest rate term structure are determined in a transparent, prudent, reliable and objective manner that is consistent over time.’; |
(4) |
Article 71 is amended as follows:
|
(5) |
in Article 73, the following paragraph 5 is added: ‘5. Notwithstanding the requirement in point (c) of paragraph 1, the basic own-fund item may allow for repayment or redemption before 5 years where all of the following conditions are met:
|
(6) |
in Article 77, the following paragraph 5 is added: ‘5. Notwithstanding the requirement in point (c) of paragraph 1, the basic own-fund item may allow for repayment or redemption sooner than 5 years after the date of issuance where all of the following conditions are met:
|
(7) |
Article 84 is amended as follows:
|
(8) |
Article 88 is amended as follows:
|
(9) |
the following Articles 90a, 90b and 90c are inserted: ‘Article 90a Simplified calculation for discontinuance of insurance policies in the non-life lapse risk sub-module For the purposes of point (a) of Article 118(1), where Article 88 is complied with, insurance and reinsurance undertakings may determine the insurance policies for which discontinuance would result in an increase of technical provisions without the risk margin on the basis of groups of policies, provided that the grouping complies with the requirements laid down in points (a), (b) and (c) of Article 35. Article 90b Simplified calculation of the sum insured for natural catastrophe risks 1. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the sum insured for windstorm risk referred to in point (b) of paragraph 6, and in paragraph 7, of Article 121 on the basis of groups of risk zones. Each of the risk zones within a group shall be situated within one and the same particular region set out in Annex V. Where the sum insured for windstorm risk referred to in point (b) of Article 121(6) is calculated on the basis of a group of risk zones, the risk weight for windstorm risk referred to in point (a) of Article 121(6) shall be the risk weight for windstorm risk in the risk zone within that group with the highest risk weight for windstorm risk set out in Annex X. 2. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the sum insured for earthquake risk referred to in point (b) of paragraph 3, and in paragraph 4, of Article 122 on the basis of groups of risk zones. Each of the risk zones within a group shall be situated within one and the same particular region set out in Annex VI. Where the sum insured for earthquake risk referred to in point (b) of Article 122(3) is calculated on the basis of a group of risk zones, the risk weight for earthquake risk referred to in point (a) of Article 122(3) shall be the risk weight for earthquake risk in the risk zone within that group with the highest risk weight for earthquake risk as set out in Annex X. 3. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the sum insured for flood risk referred to in point (b) of paragraph 6, and in paragraph 7, of Article 123 on the basis of groups of risk zones. Each of the risk zones within a group shall be situated within one and the same particular region set out in Annex VII. Where the sum insured for flood risk referred to in point (b) of Article 123(6) is calculated on the basis of a group of risk zones, the risk weight for flood risk referred to in point (a) of Article 123(6) shall be the risk weight for flood risk in the risk zone within that group with the highest risk weight for flood risk as set out in Annex X. 4. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the sum insured for hail risk referred to in point (b) of paragraph 6, and in paragraph 7, of Article 124 on the basis of groups of risk zones. Each of the risk zones within a group shall be situated within one and the same particular region set out in Annex VIII. Where the sum insured for hail risk referred to in point (b) of Article 124(6) is calculated on the basis of a group of risk zones, the risk weight for hail risk referred to in point (a) of Article 124(6) shall be the risk weight for hail risk in the risk zone within that group with the highest risk weight for hail risk as set out in Annex X. 5. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the weighted sum insured for subsidence risk referred to in Article 125(2) on the basis of groups of risk zones. Where the weighted sum insured referred to in Article 125(2) is calculated on the basis of a group of risk zones, the risk weight for subsidence risk referred to in point (a) of Article 125(2) shall be the risk weight for subsidence risk in the risk zone within that group with the highest risk weight for subsidence risk as set out in Annex X. Article 90c Simplified calculation of the capital requirement for fire risk 1. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the capital requirement for fire risk referred to in Article 132(1) as follows:
where:
2. The largest industrial fire risk concentration of an insurance or reinsurance undertaking shall be equal to the following:
where Ek,i denotes the total exposure within the perimeter of the k-th largest industrial fire risk exposure. 3. The largest commercial fire risk concentration of an insurance or reinsurance undertaking shall be equal to the following:
where Ek,c denotes the total exposure within the perimeter of the k-th largest commercial fire risk exposure. 4. The largest residential fire risk concentration of an insurance or reinsurance undertaking shall be equal to the following:
where:
5. For the purpose of paragraphs 2, 3 and 4, the total exposure within the perimeter of the k-th largest industrial, commercial or residential fire risk exposure of an insurance or reinsurance undertaking is the sum insured by the insurance or reinsurance undertaking with respect to a set of buildings that meets all of the following conditions:
For the purposes of determining the sum insured with respect to a building, insurance and reinsurance undertakings shall take into account all reinsurance contracts and special purpose vehicles that would pay out in case of insurance claims related to that building. Reinsurance contracts and special purpose vehicles that are subject to conditions not related to that building shall not be taken into account. 6. The market share based residential fire risk exposure shall be equal to the following:
where:
|
(10) |
Article 91 is amended as follows:
|
(11) |
the following Article 95a is inserted: ‘Article 95a Simplified calculation of the capital requirement for risks in the life lapse risk sub-module Where Article 88 is complied with, insurance and reinsurance undertakings may calculate each of the following capital requirements on the basis of groups of policies, provided that the grouping complies with the requirements laid down in points (a), (b) and (c) of Article 35:
|
(12) |
the following Article 96a is inserted: ‘Article 96a Simplified calculation for discontinuance of insurance policies in the NSLT health lapse risk sub-module For the purposes of point (a) of Article 150(1), where Article 88 is complied with, insurance and reinsurance undertakings may determine the insurance policies for which discontinuance would result in an increase of technical provisions without the risk margin on the basis of groups of policies, provided that the grouping complies with the requirements laid down in points (a), (b) and (c) of Article 35.’; |
(13) |
Article 97 is amended as follows:
|
(14) |
the following Article 102a is inserted: ‘Article 102a Simplified calculation of the capital requirement for risks in the SLT health lapse risk sub-module Where Article 88 is complied with, insurance and reinsurance undertakings may calculate each of the following capital requirements on the basis of groups of policies, provided that the grouping complies with the requirements laid down in points (a), (b) and (c) of Article 35:
|
(15) |
the following Article 105a is inserted: ‘Article 105a Simplified calculation for the risk factor in the spread risk sub-module and the market risk concentration sub-module Where Article 88 is complied with, insurance and reinsurance undertakings may assign a bond other than those to be included in the calculations under paragraphs (2) to (16) of Article 180 a risk factor stressi equivalent to credit quality step 3 for the purposes of Articles 176(3) and assign the bond to credit quality step 3 for the purpose of calculating the weighted average credit quality step in accordance with 182(4), provided that all of the following conditions are met:
(*2) Commission Implementing Regulation (EU) No 2015/2450 of 2 December 2015 laying down implementing technical standards with regard to the templates for the submission of information to the supervisory authorities according to Directive 2009/138/EC of the European Parliament and of the Council (OJ L 347/1, 2.12.2015, p. 1214).’;" |
(16) |
in Article 107(1), the introductory wording is replaced by the following: ‘Where both Article 88 is complied with and the best estimate of amounts recoverable from a reinsurance arrangement or securitisation and the corresponding debtors is not negative, insurance and reinsurance undertakings may calculate the risk-mitigating effect on underwriting risk of that reinsurance arrangement or securitisation referred to in Article 196 as follows:’; |
(17) |
in Article 108(1), the introductory wording is replaced by the following: ‘Where both Article 88 is complied with and the best estimate of amounts recoverable from a proportional reinsurance arrangement and the corresponding debtors for a counterparty i is not negative, insurance and reinsurance undertakings may calculate the risk-mitigating effect on underwriting risk j of the proportional reinsurance arrangement for counterparty i referred to Article 196 as follows:’; |
(18) |
Article 110 is replaced by the following: ‘Article 110 Simplified calculation — grouping of single name exposures Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the loss-given-default set out in Article 192, including the risk-mitigating effect on underwriting and market risks and the risk-adjusted value of collateral, for a group of single name exposures. In that case, the group of single name exposures shall be assigned the highest probability of default assigned to single name exposures included in the group in accordance with Article 199.’; |
(19) |
in Article 111, point (a) is replaced by the following:
|
(20) |
the following Article 111a is inserted: ‘Article 111a Simplified calculation of the risk-mitigating effect on underwriting risk For the purposes of Article 196, where Article 88 is complied with and the reinsurance arrangement, securitisation or derivative covers obligations from only one of the segments (segment s) set out in Annex II or, as applicable, Annex XIV, insurance and reinsurance undertakings may calculate the risk-mitigating effect of that reinsurance arrangement, securitisation or derivative on their underwriting risk as follows:
where:
|
(21) |
the following Articles 112a and 112b are inserted: ‘Article 112a Simplified calculation of the loss-given-default for reinsurance Where Article 88 is complied with, insurance or reinsurance undertakings may calculate the loss-given-default on a reinsurance arrangement or insurance securitisation referred to in the first subparagraph of Article 192(2) as follows:
where:
Article 112b Simplified calculation of the capital requirement for counterparty default risk on type 1 exposures Where Article 88 is complied with and the standard deviation of the loss distribution of type 1 exposures, as determined in accordance with Article 200(4), is lower than or equal to 20 % of the total losses-given default on all type 1 exposures, insurance and reinsurance undertakings may calculate the capital requirement for counterparty default risk referred to in Article 200(1) as follows:
where σ denotes the standard deviation of the loss distribution of type 1 exposures as determined in accordance with Article 200(4).’; |
(22) |
in Article 116(3), point (d) is replaced by the following:
|
(23) |
Article 121 is amended as follows:
|
(24) |
Article 122 is amended as follows:
|
(25) |
Article 123 is amended as follows:
|
(26) |
Article 124 is amended as follows:
|
(27) |
Article 125 is amended as follows:
|
(28) |
Article 130 is replaced by the following: ‘Article 130 Marine risk sub-module 1. The capital requirement for marine risk shall be equal to the following:
where:
2. The capital requirement for the risk of a vessel collision shall be equal to the loss in basic own funds of insurance and reinsurance undertakings that would result from an instantaneous loss of an amount equal to the following:
where:
For the purposes of determining SI(hull,v) , SI(liab,v) and SI(pollution,v) , insurance and reinsurance undertakings shall only take into account reinsurance contracts and special purpose vehicles that would pay out in the event of insurance claims related to vessel v. Reinsurance contracts and special purpose vehicles where payout is dependent on insurance claims not related to vessel v shall not be taken into account. Where the deduction of amounts recoverable would lead to a capital requirement for the risk of a vessel collision that captures insufficiently the risk of a vessel collision that the insurance or reinsurance undertaking is exposed to, the insurance or reinsurance undertaking shall calculate SI(hull,v) , SI(liab,v) or SI(pollution,v) without deduction of amounts recoverable. 3. The capital requirement for the risk of a platform explosion shall be equal to the loss in basic own funds of insurance and reinsurance undertakings that would result from an instantaneous loss of an amount equal to the following:
where:
For the purposes of determining SIp , insurance and reinsurance undertakings shall only take into account reinsurance contracts and special purpose vehicles that would pay out in the event of insurance claims related to platform p. Reinsurance contracts and special purpose vehicles where payout is dependent on insurance claims that are not related to platform p shall not be taken into account. Where the deduction of amounts recoverable would lead to a capital requirement for the risk of a platform explosion that captures insufficiently the risk of a platform explosion that the insurance or reinsurance undertaking is exposed to, the insurance or reinsurance undertaking shall calculate SIp without the deduction of amounts recoverable.’; |
(29) |
Article 131 is amended as follows:
|
(30) |
in Article 132, paragraphs 1 and 2 are replaced by the following: ‘1. The capital requirement for fire risk shall be equal to the loss in basic own funds of insurance and reinsurance undertakings that would result from an instantaneous loss of an amount equal to the sum insured by the insurance or reinsurance undertaking with respect to the largest fire risk concentration. 2. The largest fire risk concentration of an insurance or reinsurance undertaking is the set of buildings with the largest sum insured, after deduction of the amounts that the insurance or reinsurance undertaking can recover from reinsurance contracts and special purpose vehicles, that meets all of the following conditions:
In determining the sum insured for a set of buildings, insurance and reinsurance undertakings shall only take into account reinsurance contracts and special purpose vehicles that would pay out in the event of insurance claims related to that set of buildings. Reinsurance contracts and special purpose vehicles where payout is dependent on insurance claims that are not related to that set of buildings shall not be taken into account. Where the deduction of amounts recoverable would lead to a capital requirement for fire risk that captures insufficiently the fire risk that the insurance or reinsurance undertaking is exposed to, the insurance or reinsurance undertaking shall calculate the sum insured for a set of buildings without the deduction of amounts recoverable.’; |
(31) |
in Article 147(3), point (d) is replaced by the following:
|
(32) |
in Article 168, paragraph 6 is amended as follows:
|
(33) |
the following Article 168a is inserted: ‘Article 168a Qualifying unlisted equity portfolios 1. For the purposes of point (e) of Article 168(6), a qualifying unlisted equity portfolio is a set of equity investments that meets all of the following requirements:
2. For the purposes of paragraph 1(i), the beta of a set of investments is the average of the betas for each of the investments in that set of investments, weighted by the book values of those investments. The beta of an investment in a company shall be determined as follows:
where:
(*4) Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).’;" |
(34) |
Article 169 is replaced by the following: ‘Article 169 Standard equity risk sub-module 1. The capital requirement for type 1 equities referred to in Article 168 of this Regulation shall be equal to the loss in the basic own funds that would result from the following instantaneous decreases:
2. The capital requirement for type 2 equities referred to in Article 168 of this Regulation shall be equal to the loss in the basic own funds that would result from the following instantaneous decreases:
3. The capital requirement for qualifying infrastructure equities referred to in Article 168 of this Regulation shall be equal to the loss in the basic own funds that would result from the following instantaneous decreases:
4. The capital requirement for qualifying infrastructure corporate equities referred to in Article 168 of this Regulation shall be equal to the loss in the basic own funds that would result from the following instantaneous decreases:
|
(35) |
the following Article 171a is inserted: ‘Article 171a Long-term equity investments 1. For the purpose of this Regulation, a sub-set of equity investments may be treated as long-term equity investments if the insurance or reinsurance undertaking demonstrates, to the satisfaction of the supervisory authority, that all of the following conditions are met:
2. Where equities are held within collective investment undertakings or within alternative investment funds referred to in points (a) to (d) of Article 168(6), the conditions set out in paragraph 1 of this Article may be assessed at the level of the funds and not of the underlying assets held within those funds. 3. Insurance or reinsurance undertakings that treat a sub-set of equity investments as long-term equity investments in accordance with paragraph 1 shall not revert back to an approach that does not include long-term equity investments. Where an insurance or reinsurance undertaking that treats a sub-set of equity investments as long-term equity investments is no longer able to comply with the conditions set out in paragraph 1, it shall immediately inform the supervisory authority and shall cease to apply Article 169(1)(b), (2)(b), (3)(b) and (4)(b) to any of its equity investments for a period of 36 months.’; |
(36) |
in Article 176, the following paragraph 4a is inserted: ‘4a. Notwithstanding paragraph 4, bonds and loans that are assigned to a credit quality step in accordance with paragraph 1 or 2 of Article 176a or paragraph 1 of Article 176c shall be assigned a risk factor stressi depending on the credit quality step and the modified duration duri of the bond or loan i assigned in accordance with the table set out in paragraph 3 of this Article.’; |
(37) |
the following Articles 176a to 176c are inserted: ‘Article 176a Internal assessment of credit quality steps of bonds and loans 1. A bond or loan for which a credit assessment by a nominated ECAI is not available and for which debtors have not posted collateral that meets the criteria set out in Article 214 may be assigned to credit quality step 2 if all of the criteria set out in paragraphs 3 and 4 are met with respect to the bond or loan. 2. A bond or loan for which a credit assessment by a nominated ECAI is not available and for which debtors have not posted collateral that meets the criteria set out in Article 214, other than a bond or loan assigned to credit quality step 2 under paragraph 1, may be assigned to credit quality step 3 if all of the criteria set out in paragraphs 3 and 5 are met with respect to the bond or loan. 3. The criteria in this paragraph are as follows:
4. The yield on the bond or loan, and the yield on any bonds and loans with similar contractual terms and conditions issued by the same company in the previous three financial years, is no higher than the higher of the following values:
5. The yield on the bond or loan, and the yield on bonds and loans with similar contractual terms and conditions issued by the same company in the previous three financial years, is no higher than the higher of the following values:
6. For the purposes of paragraph 4, the insurance or reinsurance undertaking shall determine, for the bond or loan referred to in paragraph 1, the yield, as at the time of issuance of that bond or loan, on two indices that meet all of the following requirements:
7. For the purposes of paragraph 5, the insurance or reinsurance undertaking shall determine, for the bond or loan referred to in paragraph 2, the yield, as at the time of issuance of that bond or loan, on two indices that meet all of the following requirements:
8. For the purposes of paragraph 4, where the bond or loan referred to in paragraph 1 has features, other than those related to credit risk or illiquidity, which materially differ from the features of the constituent traded bonds in the two indices determined in accordance with paragraph 6, the insurance or reinsurance undertaking shall adjust the yield on the bond or loan to reflect those differences. 9. For the purposes of paragraph 5, where the bond or loan referred to in paragraph 2 has features, other than those related to credit risk or illiquidity, which materially differ from the features of the constituent traded bonds in the two indices determined in accordance with paragraph 7, the insurance or reinsurance undertaking shall adjust the yield on the bond or loan to reflect those differences. Article 176b Requirements for an undertaking's own internal credit assessment of bonds and loans The requirements to be met for the purposes of point (a) of Article 176a(3) by an insurance or reinsurance undertaking's own internal credit assessment of a bond or loan shall be as follows:
Article 176c Assessment of credit quality steps of bonds and loans based on an approved internal model 1. This Article shall apply in the following circumstances:
2. If all of the criteria set out in paragraphs 3 to 6 are met, the bonds and loans referred to in point (c) of paragraph 1 shall be assigned to credit quality steps determined as follows:
3. The criteria in this paragraph are as follows:
4. The criteria in this paragraph are as follows:
5. In a case where the co-investor falls within point (i) of paragraph 1(b):
6. In a case where the co-investor falls within point (ii) of paragraph 1(b), the internal model ensures that, for the bond or loan in question, the resulting level of capital requirement for the spread risk sub-module referred to in point (d) of the second subparagraph of Article 105(5) of Directive 2009/138/EC is appropriate. (*5) Commission Implementing Regulation (EU) 2016/1799 of 7 October 2016 laying down implementing technical standards with regard to the mapping of credit assessments of external credit assessment institutions for credit risk in accordance with Articles 136(1) and 136(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (OJ L 275, 12.10.2016, p. 3)’;" |
(38) |
Article 180 is amended as follows:
|
(39) |
Article 182 is amended as follows:
|
(40) |
in Article 184, paragraph 3 is replaced by the following: ‘3. The exposure at default on a single name exposure i shall be reduced by the amount of the exposure at default to counterparties belonging to that single name exposure and for which the risk factor for market risk concentration referred to in Articles 186 and 187 is 0 %.’; |
(41) |
in Article 186, paragraphs 2 to 6 are deleted; |
(42) |
Article 187 is amended as follows:
|
(43) |
Article 189 is amended as follows:
|
(44) |
Article 192 is amended as follows:
|
(45) |
the following Article 192a is inserted: ‘Article 192a Exposure to clearing members 1. For the purposes of Article 192(3), a derivative falls within this paragraph if the following requirements are met:
2. For the purposes of Article 192(3a), a derivative falls within this paragraph if the requirements set out in paragraph 1 are met, with the exception that the insurance or reinsurance undertaking is not required to be protected from losses in the event that the clearing member and another client of the clearing member jointly default.’; |
(46) |
Article 196 is replaced by the following: ‘Article 196 Risk-mitigating effect The risk-mitigating effect on underwriting or market risks of a reinsurance arrangement, securitisation or derivative shall be the larger of zero and the difference between the following capital requirements:
|
(47) |
Article 197 is amended as follows:
|
(48) |
in Article 199, the following paragraphs 12 and 13 are added: ‘12. Notwithstanding paragraphs 2 to 11, exposures referred to Article 192(3) shall be assigned a probability of default equal to 0,002 %. 13. Notwithstanding paragraphs 2 to 12, exposures referred to Article 192(3a) shall be assigned a probability of default equal to 0,001 %.’; |
(49) |
in Article 201(2), point (a) is replaced by the following:
|
(50) |
Article 207 is amended as follows:
|
(51) |
in Article 208, paragraph 2 is replaced by the following: ‘2. Where insurance or reinsurance undertakings transfer underwriting risks using finite reinsurance contracts, as defined in Article 210(3) of Directive 2009/138/EC, that meet the requirements set out in Articles 209, 211 and 213 of this Regulation, those contracts shall be recognised in the scenario based calculations set out in Title I, Chapter V, Sections 2, 3 and 4 of this Regulation only to the extent underwriting risk is transferred to the counterparty of the contract. Notwithstanding the previous sentence, finite reinsurance, or similar arrangements where the effective risk transfer is comparable to that of finite reinsurance, shall not be taken into account for the purposes of determining the volume measures for premium and reserve risk in accordance with in Articles 116 and 147 of this Regulation, or for the purposes of calculating undertaking-specific parameters in accordance with Section 13 of this Chapter.’; |
(52) |
in Article 209, paragraph 3 is replaced by the following: ‘3. Where contractual arrangements governing the risk-mitigation techniques will be in force for a period shorter than the next 12 months and the insurance or reinsurance undertaking intends to replace that risk-mitigation technique at the time of its expiry with a similar arrangement or where that risk-mitigation technique is subject to an adjustment to reflect changes in the exposure that it covers, the risk-mitigation technique shall be fully taken into account in the Basic Solvency Capital Requirement provided all of the following qualitative criteria are met:
|
(53) |
in Article 210, the following paragraph 5 is added: ‘5. Where an insurance or reinsurance undertaking combines several contractual arrangements to transfer risk, each of the contractual arrangements shall meet the requirements set out in paragraphs 1 and 4 and the contractual arrangements in combination shall meet the requirements set out in paragraphs 2 and 3.’; |
(54) |
Article 211 is amended as follows:
|
(55) |
in Article 212, paragraph 1 is replaced by the following: ‘1. Where insurance or reinsurance undertakings transfer risk, in order for the risk-mitigation technique to be taken into account in the Basic Solvency Capital Requirement, in other cases than in the cases referred to in Article 211(1), including transfers through the purchase or issuance of financial instruments, the qualitative criteria provided in paragraphs 2 to 5 shall be met, in addition to the qualitative criteria set out in Articles 209 and 210.’; |
(56) |
in Article 213, paragraph 1 is replaced by the following: ‘1. In the event that the qualitative criteria in Article 211(1), or Article 212(4) or (5) are not met, insurance and reinsurance undertakings shall only take into account the risk-mitigation techniques when calculating the Basic Solvency Capital Requirement where one of the following criteria is met:
|
(57) |
Article 218 is amended as follows:
|
(58) |
in Article 220(1), point (c) is replaced by the following:
|
(59) |
in Article 260(1), the following point (h) is added:
|
(60) |
Article 297 is amended as follows:
|
(61) |
Article 311 is amended as follows:
|
(62) |
in Article 326(4), point (d) is replaced by the following:
|
(63) |
Article 335(1) is amended as follows:
|
(64) |
Article 336 is amended as follows:
|
(65) |
Article 337 is replaced by the following: ‘Article 337 Method 1: determination of the local currency for the purposes of the currency risk calculation 1. Where the consolidated group Solvency Capital Requirement is calculated, wholly or in part, on the basis of the standard formula, the local currency referred to in the first paragraph of Article 188 shall be the currency used for the preparation of the consolidated accounts. 2. Notwithstanding paragraph 1, where a material amount of the consolidated technical provisions or the consolidated group own funds is denominated in a currency other than the one used for the preparation of the consolidated accounts, that currency may be considered as the local currency referred to in the first paragraph of Article 188.’; |
(66) |
Annex II is replaced by the text in Annex I to this Regulation; |
(67) |
Annex III is amended in accordance with Annex II to this Regulation; |
(68) |
Annex V is replaced by the text in Annex III to this Regulation; |
(69) |
Annex VI amended in accordance with Annex IV to this Regulation; |
(70) |
Annex VII is amended in accordance with Annex V to this Regulation; |
(71) |
Annex VIII is replaced by the text in Annex VI to this Regulation; |
(72) |
Annex IX is amended in accordance with Annex VII to this Regulation; |
(73) |
Annex X is amended in accordance with Annex VIII to this Regulation; |
(74) |
Annex XIV is replaced by the text in Annex IX to this Regulation; |
(75) |
Annex XVI is amended in accordance with Annex X of this Regulation; |
(76) |
Annex XVII is amended in accordance with Annex XI to this Regulation; |
(77) |
Annex XXI is amended in accordance with Annex XII to this Regulation; |
(78) |
Annex XXII is amended in accordance with Annex XIII to this Regulation; |
(79) |
Annex XXIII is amended in accordance with Annex XIV to this Regulation; |
(80) |
Annex XXIV is amended in accordance with Annex XV to this Regulation; |
(81) |
Annex XXV is amended in accordance with Annex XVI to this Regulation. |
Article 2
Entry into force and application
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Points (50), (59) to (61), (66) and (74) of Article 1 shall apply from 1 January 2020.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 8 March 2019.
For the Commission
The President
Jean-Claude JUNCKER
(1) OJ L 335, 17.12.2009, p. 1.
(2) COM(2018) 439 final.
(3) 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) (OJ L 12, 17.1.2015, p. 1).
ANNEX I
‘ANNEX II
SEGMENTATION OF NON-LIFE INSURANCE AND REINSURANCE OBLIGATIONS AND STANDARD DEVIATIONS FOR THE NON-LIFE PREMIUM AND RESERVE RISK SUB-MODULE
|
Segment |
Lines of business, as set out in Annex I, that the segment consists of |
Standard deviation for gross premium risk of the segment |
Standard deviation for reserve risk of the segment |
1 |
Motor vehicle liability insurance and proportional reinsurance |
4 and 16 |
10 % |
9 % |
2 |
Other motor insurance and proportional reinsurance |
5 and 17 |
8 % |
8 % |
3 |
Marine, aviation and transport insurance and proportional reinsurance |
6 and 18 |
15 % |
11 % |
4 |
Fire and other damage to property insurance and proportional reinsurance |
7 and 19 |
8 % |
10 % |
5 |
General liability insurance and proportional reinsurance |
8 and 20 |
14 % |
11 % |
6 |
Credit and suretyship insurance and proportional reinsurance |
9 and 21 |
19 % |
17,2 % |
7 |
Legal expenses insurance and proportional reinsurance |
10 and 22 |
8,3 % |
5,5 % |
8 |
Assistance and its proportional reinsurance |
11 and 23 |
6,4 % |
22 % |
9 |
Miscellaneous financial loss insurance and proportional reinsurance |
12 and 24 |
13 % |
20 % |
10 |
Non-proportional casualty reinsurance |
26 |
17 % |
20 % |
11 |
Non-proportional marine, aviation and transport reinsurance |
27 |
17 % |
20 % |
12 |
Non-proportional property reinsurance |
28 |
17 % |
20 % |
ANNEX II
Point 8 of Annex III is amended as follows:
(1) |
‘Puerto Rico’ is deleted from the list of territories that region 16 (South-east United States of America) consists of; |
(2) |
in the list of territories that region 16 (South-east United States of America) consists of, ‘Georgia’ is replaced by ‘Georgia (US)’. |
ANNEX III
‘ANNEX V
PARAMETERS FOR THE WINDSTORM RISK SUB-MODULE
Regions and windstorm risk factors
Abbreviation of region r |
Region r |
Windstorm risk factor Q(windstorm,r) |
AT |
Republic of Austria |
0,06 % |
BE |
Kingdom of Belgium |
0,16 % |
CZ |
Czech Republic |
0,04 % |
CH |
Swiss Confederation; Principality of Lichtenstein |
0,09 % |
DK |
Kingdom of Denmark |
0,25 % |
FI |
Republic of Finland |
0,04 % |
FR |
French Republic (1); Principality of Monaco; Principality of Andorra |
0,12 % |
DE |
Federal Republic of Germany |
0,07 % |
HU |
Republic of Hungary |
0,02 % |
IS |
Republic of Iceland |
0,03 % |
IE |
Ireland |
0,22 % |
LU |
Grand Duchy of Luxembourg |
0,12 % |
NL |
Kingdom of the Netherlands |
0,18 % |
NO |
Kingdom of Norway |
0,08 % |
PL |
Republic of Poland |
0,04 % |
SI |
Republic of Slovenia |
0,04 % |
ES |
Kingdom of Spain |
0,01 % |
SE |
Kingdom of Sweden |
0,085 % |
UK |
United Kingdom of Great Britain and Northern Ireland |
0,17 % |
GU |
Guadeloupe |
2,74 % |
MA |
Martinique |
3,19 % |
SM |
Collectivity of Saint Martin |
5,16 % |
RE |
Réunion |
2,50 % |
WINDSTORM RISK CORRELATION COEFFICIENTS FOR REGIONS
|
AT |
BE |
CH |
CZ |
DE |
DK |
ES |
FI |
FR |
UK |
HU |
IE |
IS |
LU |
NL |
NO |
PL |
SE |
SI |
GU |
MA |
SM |
RE |
AT |
1,00 |
0,25 |
0,50 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,25 |
0,00 |
0,50 |
0,00 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,50 |
0,00 |
0,00 |
0,00 |
0,00 |
BE |
0,25 |
1,00 |
0,25 |
0,25 |
0,50 |
0,25 |
0,00 |
0,00 |
0,50 |
0,50 |
0,00 |
0,25 |
0,00 |
0,75 |
0,75 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
CH |
0,50 |
0,25 |
1,00 |
0,25 |
0,25 |
0,00 |
0,25 |
0,00 |
0,50 |
0,00 |
0,25 |
0,00 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
CZ |
0,25 |
0,25 |
0,25 |
1,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,25 |
0,00 |
0,25 |
0,00 |
0,00 |
0,25 |
0,25 |
0,00 |
0,25 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
DE |
0,25 |
0,50 |
0,25 |
0,25 |
1,00 |
0,50 |
0,00 |
0,00 |
0,50 |
0,25 |
0,00 |
0,25 |
0,00 |
0,50 |
0,50 |
0,25 |
0,50 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
DK |
0,00 |
0,25 |
0,00 |
0,00 |
0,50 |
1,00 |
0,00 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,25 |
0,50 |
0,50 |
0,25 |
0,50 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
ES |
0,00 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
FI |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,25 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
FR |
0,25 |
0,50 |
0,50 |
0,25 |
0,50 |
0,25 |
0,25 |
0,00 |
1,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,50 |
0,50 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
UK |
0,00 |
0,50 |
0,00 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,25 |
1,00 |
0,00 |
0,50 |
0,00 |
0,25 |
0,50 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
HU |
0,50 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,50 |
0,00 |
0,00 |
0,00 |
0,00 |
IE |
0,00 |
0,25 |
0,00 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,50 |
0,00 |
1,00 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
IS |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
LU |
0,25 |
0,75 |
0,25 |
0,25 |
0,50 |
0,25 |
0,00 |
0,00 |
0,50 |
0,25 |
0,00 |
0,25 |
0,00 |
1,00 |
0,50 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
NL |
0,25 |
0,75 |
0,25 |
0,25 |
0,50 |
0,50 |
0,00 |
0,00 |
0,50 |
0,50 |
0,00 |
0,25 |
0,00 |
0,50 |
1,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
NO |
0,00 |
0,00 |
0,00 |
0,00 |
0,25 |
0,50 |
0,00 |
0,25 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,25 |
0,25 |
1,00 |
0,00 |
0,50 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
PL |
0,00 |
0,25 |
0,00 |
0,25 |
0,50 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,25 |
0,25 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
SE |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,50 |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,50 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
SI |
0,50 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,50 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
GU |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
1,00 |
1,00 |
0,00 |
MA |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
1,00 |
1,00 |
0,00 |
SM |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
1,00 |
1,00 |
0,00 |
RE |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
(1) Except Guadeloupe, Martinique, the Collectivity of Saint Martin and Réunion
ANNEX IV
In Annex VI, the section ‘Regions and earthquake risk factors’ is replaced by the following:
‘ Regions and earthquake risk factors
Abbreviation of region r |
Region r |
Earthquake risk factor Q ( earthquake , r ) |
AT |
Republic of Austria |
0,10 % |
BE |
Kingdom of Belgium |
0,02 % |
BG |
Republic of Bulgaria |
1,60 % |
CR |
Republic of Croatia |
1,60 % |
CY |
Republic of Cyprus |
2,12 % |
CZ |
Czech Republic |
0,10 % |
CH |
Swiss Confederation; Principality of Lichtenstein |
0,25 % |
FR |
French Republic (1); Principality of Monaco; Principality of Andorra |
0,06 % |
DE |
Federal Republic of Germany |
0,10 % |
HE |
Hellenic Republic |
1,75 % |
HU |
Republic of Hungary |
0,20 % |
IT |
Italian Republic; Republic of San Marino; Vatican City State |
0,77 % |
MT |
Republic of Malta |
1,00 % |
PT |
Portuguese Republic |
1,20 % |
RO |
Romania |
1,70 % |
SK |
Slovak Republic |
0,16 % |
SI |
Republic of Slovenia |
1,00 % |
GU |
Guadeloupe |
4,09 % |
MA |
Martinique |
4,71 % |
SM |
Collectivity of Saint Martin |
5,00 % |
(1) Except Guadeloupe, Martinique, the Collectivity of Saint Martin and Réunion’.
ANNEX V
In Annex VII, the section ‘Regions and flood risk factors’ is replaced by the following:
‘ Regions and flood risk factors
Abbreviation of region r |
Region r |
Flood risk factor Q ( flood , r ) |
AT |
Republic of Austria |
0,13 % |
BE |
Kingdom of Belgium |
0,10 % |
BG |
Republic of Bulgaria |
0,15 % |
CZ |
Czech Republic |
0,30 % |
CH |
Swiss Confederation; Principality of Lichtenstein |
0,30 % |
FR |
French Republic (1); Principality of Monaco; Principality of Andorra |
0,12 % |
DE |
Federal Republic of Germany |
0,20 % |
HU |
Republic of Hungary |
0,25 % |
IT |
Italian Republic; Republic of San Marino; Vatican City State |
0,15 % |
PL |
Republic of Poland |
0,16 % |
RO |
Romania |
0,30 % |
SK |
Slovak Republic |
0,35 % |
SI |
Republic of Slovenia |
0,30 % |
UK |
United Kingdom of Great Britain and Northern Ireland |
0,12 % |
(1) Except Guadeloupe, Martinique, the Collectivity of Saint Martin and Réunion’.
ANNEX VI
‘ANNEX VIII
PARAMETERS FOR THE HAIL RISK SUB-MODULE
Regions and hail risk factors
Abbreviation of region r |
Region r |
Hail risk factor Q ( hail , r ) |
AT |
Republic of Austria |
0,08 % |
BE |
Kingdom of Belgium |
0,03 % |
CZ |
Czech Republic |
0,045 % |
CH |
Swiss Confederation; Principality of Lichtenstein |
0,06 % |
FR |
French Republic (1); Principality of Monaco; Principality of Andorra |
0,01 % |
DE |
Federal Republic of Germany |
0,02 % |
IT |
Italian Republic; Republic of San Marino; Vatican City State |
0,05 % |
LU |
Grand Duchy of Luxembourg |
0,03 % |
NL |
Kingdom of the Netherlands |
0,02 % |
ES |
Kingdom of Spain |
0,01 % |
SI |
Republic of Slovenia |
0,08 % |
Hail risk correlation coefficients for regions
|
AT |
BE |
CZ |
FR |
DE |
IT |
LU |
NL |
CH |
SI |
ES |
AT |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
BE |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,25 |
0,25 |
0,00 |
0,00 |
0,00 |
CZ |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
FR |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
DE |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
IT |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
LU |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,25 |
0,00 |
0,00 |
0,00 |
NL |
0,00 |
0,25 |
0,00 |
0,00 |
0,00 |
0,00 |
0,25 |
1,00 |
0,00 |
0,00 |
0,00 |
CH |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
0,00 |
SI |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
0,00 |
ES |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
0,00 |
1,00 |
(1) Except Guadeloupe, Martinique, the Collectivity of Saint Martin and Réunion
ANNEX VII
Annex IX is amended as follows:
(1) |
the title is replaced by the following: ‘THE GEOGRAPHICAL DIVISION OF REGIONS SET OUT IN ANNEXES V-VIII INTO RISK ZONES’; |
(2) |
the first sentence is replaced by the following: ‘The risk zones of regions set out in annexes V-VIII as referred to in annexes X-XIII shall be equal to the postal code areas or administrative units in the following tables.’; |
(3) |
point 1 in the section ‘Mappings of risk zones for regions where the zonation is based on postal codes’ is replaced by the following: ‘The mapping of risk zones for the regions AT, CZ, CH, DE, HE, IT, NL, NO, PL, PT, ES and SK shall be based on the first 2 digits of the postal code;’; |
(4) |
the section ‘Mappings of risk zones for regions where the zonation is based on administrative units — part 2’ is replaced by the following: ‘ Mappings of risk zones for regions where the zonation is based on administrative units — part 2 The mapping of risk zones for the region SE shall be based on the numbers assigned to counties.
|