Solvency II proposals cause confusion on non-euro extrapolation

Draft delegated acts suggest the last liquid point for non-euro currencies could shift


Inconsistencies in the latest draft of the Solvency II delegated acts threaten to undermine how insurers value their long-term liabilities in currencies other than the euro.

Proposed changes by the European Commission could make it harder for insurers to hedge against movements in the risk-free rate curve used to discount non-euro liabilities.

T he latest draft of the delegated acts, which set some of the detail for Europe's Solvency II insurance regulation and were circulated informally to insu