Prudent Person Principle: Assets Covering Technical Provisions


In addition to meeting the requirements set out in 2.1, a firm must ensure that assets held to cover its technical provisions are invested in a manner appropriate to the nature and duration of the firm’s insurance and reinsurance liabilities and in the best interests of all policyholders, taking into account any disclosed policy objectives.

[Note: Art. 132(2) of the Solvency II Directive]