Details of matching premium and treatment of EPIFP emerge in Commission paper
ABI says proposals are disappointing and the European Commission has ignored many of the industry's calls for change to Solvency II rules
Insurers will be able to use a ‘matching premium' when calculating the discount rate and treat expected profits in future premiums (EPIFP) as Tier I capital under Solvency II, according to a new working paper from the European Commission (EC).
However, the commission's proposals, set out in a private paper, have been criticised for being too restrictive in their application and for ignoring many of the concerns raised by the insurance industry.
The internal staff working document contains the
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