On 10 November, the European Commission adopted Implementing Regulation 2016/1976 laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 30 September until 30 December 2016 in accordance with Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance.

The most recent technical information provided by EIOPA to the European Commission which was published related to end of September 2016 market data. The recitals of the Implementing Regulation explain that there is a need for the technical information to be available immediately and so there is a requirement that it enter into force as a matter of urgency.

The Annexes set out the technical information insurance and reinsurance undertakings will use when calculating technical provisions and basic own funds for reporting with reference dates from 30 September to 30 December 2016. Annex I deals with the relevant risk-free rate term structures. Annex II concerns the fundamental spreads for the calculation of the matching adjustment and Annex III lays out the volatility adjustments for each relevant national market.

The Implementing Regulation came into force on 17 November and shall apply from 30 September 2016. The technical information provided in the Implementing Regulation must be used by both insurance and reinsurance undertakings. This is to ensure that that the conditions for calculation are uniform across all undertakings.

A link to the Implementing Regulation is here.