EIOPA has updated its technical information on the relevant risk-free interest rate term structures to be applied by (re)insurance undertakings when calculating their technical provisions under Solvency 2. EIOPA has also published a set of Q&As to better explain the publication. The Association of British Insurers (ABI) has welcomed the changes made to the calculation of the Solvency 2 fundamental spread. It believes the update will improve firms’ solvency positions and encourage long-term investments. It also thinks that the changes will avoid a potential reduction in annuity incomes paid to new customers as firms will not need to hold an excess of capital for each customer. (Source: EIOPA Updates on Relevant Risk-free Interest Rate Term Structures)