Standard formula’s treatment of long-term investments 'flawed'


The European Insurance and Occupational Pensions Authority (Eiopa) is facing calls to adjust the capital charges imposed on certain long-term investments under Solvency II.

Insurers and asset managers say the standard formula's capital charges on securitised products and secured investments need to be adjusted as they are calculated with reference to inappropriate data sets and methodologies.

Eiopa carried out a review of the calibrations of certain long-term asset classes at the request of the