Cap 'too high' on Solvency II credit risk adjustment

European Commission proposals on the credit risk adjustment will fail to prevent balance sheet volatility, say experts

market volatility

A proposed 35-basis point cap on the Solvency II credit risk adjustment is set too high to prevent volatility in insurers' balance sheets, actuaries warn, saying the limit will only take effect in times of severe market stress.

The cap is part of an overhaul by the European Commission of how the adjustment is calculated, according to sources familiar with a draft version of the delegated acts sent to member states last week.

The commission also proposes to halve the size of the adjustment and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here