On 6 November 2017, a consultation paper (CP) was issued by the European Insurance and Occupational Pensions Authority (EIOPA) with respect to the second set of Advice to the European Commission, concerning specific items in the Solvency II Delegated Regulation1 . This CP discusses possible future changes in the technical specifications of the Standard Formula and follows a previous discussion paper published in early 2017 which started a dialogue with the industry concerning EIOPA’s review of the Delegated Regulation relative to the Standard Formula.
In this article we summarise the advice and suggestions put forward by EIOPA with regards to changes for the premium risk capital requirement calculation and in particular with regards to the definition of the volume measure, which has always been a controversial aspect of the Standard Formula and could impact the capital requirements of non-life companies.