Technical Provisions Comparison Against Experience

Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) in accordance with Insurance General Application 3, the Society, as modified by 16; and
  3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 16.

13.1

01/01/2016

  1. (1) Firms must ensure that the best estimate, and the assumptions underlying the calculation of the best estimate, are regularly compared against experience.
  2. (2) Where the comparison in (1) identifies that a systematic deviation exists between the firm’s best estimate calculations and experience, the firm must make appropriate adjustments to the actuarial methods being used and/or the assumptions being made to ensure that the best estimate is calculated in accordance with 2 to 12.

[Note: Art. 83 of the Solvency II Directive]