New rules for sensitivity analyses in insurance companies

• What changes:

  • The rules now refer to the act on insurance business instead of the act on financial business.
  • There are new definitions of own funds to cover the solvency capital requirement and of basic own funds to cover the minimum capital requirement, and minimum coverage is now calculated using basic own funds.
  • The company can now choose whether the solvency and minimum coverage (instead of the solvency and minimum capital requirement) after stress are found by full recalculation or by an approximation method.
  • The analyses must still follow the principle in Article 84, which is now called the look-through method (previously the transparency principle).
  • The words saying that the analysis must be carried out for each individual risk category have been removed from this provision, and the risk categories (interest rates, shares, property and credit spreads) are now listed with references to articles in the Commission Delegated Regulation to Solvency II.
• Who: The rules apply to group 1 insurance companies that must carry out sensitivity analyses.
• When: The executive order will enter into force on 1 January 2027.

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