AI Summary of Article 111 Delegated acts and regulatory and implementing technical standards concerning Articles 103 to 109
The Commission is required, under Article 301a, to adopt delegated acts establishing a standard formula and any necessary sub‑modules, methods, assumptions and standard parameters for calculating the Solvency Capital Requirement (SCR). The delegated acts must cover correlation parameters and update procedures; risk‑mitigation methods and qualitative transfer criteria; CCP treatment; operational risk parameters; adjustments for ring‑fenced funds; the loss‑absorbing capacity of technical provisions and deferred taxes; undertaking‑specific parameter replacement and supervisory approval procedures; simplifications and eligibility criteria; treatment of qualifying holdings; use of ECAI assessments; equity index criteria; currency peg adjustments; and regional government categorisation.
Interest rate parameters must reflect further decreases even at low or negative levels and align with extrapolation under Article 77a, except where a negative floor makes lower rates sufficiently unlikely. Ring‑fencing adjustments exclude non‑ring‑fenced portfolios assigned to best estimates per Article 77b(1)(a). EIOPA must draft implementing technical standards on supervisory approval by 31 October 2014 and draft regulatory technical standards on quantitative limits and asset eligibility where sub‑modules are inadequate; the Commission may adopt those standards under Regulation (EU) No 1094/2010. Interest‑rate amendments may be phased in up to five years, mandatory for all undertakings; those applying the phasing‑in must disclose that fact and quantify the impact of not applying it. From 29 January 2030 and every five years EIOPA shall assess appropriateness of methods, assumptions and parameters and the Commission shall propose amendments where appropriate.
Article 111 Delegated acts and regulatory and implementing technical standards concerning Articles 103 to 109
1. The Commission shall adopt delegated acts in accordance with Article 301a providing for the following:
(a) a standard formula in accordance with Articles 101 and 103 to 109;
(b) any sub-modules necessary or covering more precisely the risks which fall under the respective risk modules referred to in Article 104 as well as any subsequent updates;
(c) the methods, assumptions and standard parameters to be calibrated to the confidence level referred to in Article 101(3) and to be used when calculating each of the risk modules or sub-modules of the basic Solvency Capital Requirement laid down in Articles 104, 105 and 304, the symmetric adjustment mechanism and the appropriate period of time, expressed in the number of months, as referred to in Article 106, and the appropriate approach for integrating the method referred to in Article 304 in the Solvency Capital Requirement as calculated in accordance with the standard formula;
(d) the correlation parameters, including, where necessary, those set out in Annex IV, and the procedures for updating those parameters;