breaches in solvency

Hi,

1) In the notes it says that for a breach of the GICR\RMS the insurer must notify the FSA, submit a scheme of operations and a plan for restoration within 28 days.

For a breach of the Guarantee Fund do the same within 14 days.

For a breach of the CRR it must notify the FSA and submit a plan for restoration within 28 days. i.e. no scheme of operations

There seems to be an inconsistency here for the CRR since it doesn't seem possible to breach it without first breaching the RMS or the Guarantee fund and both of them requiring a scheme of operations to be submitted.

2) Also for the GICR calculation the SA3 upgrade does not mention the 1/3 weighting given to accident and health classes. Have the rules changed?

 

you are right, I think

I think you are right in both cases.
1) bear in mind some of these apply to long-term business as well (it is probably the same core reading for the Life SA too) in GI CRR and RMM are identical.
2) no it has not changed. I thought the 1/3 upgrade was for certain classes of actuarially priced health insurance (in eg Germany). However, as there is a separate health insurance.

PS I'd like to qualify too