Changes to fundamental spread help UK insurers, not others

Recalibration of part of Solvency II makes little difference to euro volatility adjustment

Eiopa flags
Eiopa: has changed the calculation of the fundamental spread

Changes to a key element of liability discounting under Solvency II will benefit UK insurers but will make little difference to their continental peers, experts say.

The European Insurance and Occupational Pensions Authority (Eiopa) has changed how it calculates the fundamental spread, a component of two adjustments insurers apply under the directive to improve their discounting rate for liabilities – the matching adjustment and volatility adjustment (VA).

On December 7, Eiopa published an

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