The core reading states that a rfr is used. Would the rate always be the same as used for BEL, as both components form technical provisions? Swap rate with credit adjustments. With va?
I came to a conclusion that RM would be discounted by RFR based on EIOPA term-dependent rates based on LIBOR swap rates adjusted by the credit risk - generic assumption for BEL. I would assume that VA or MA would never apply to discounting RM because these adjustments are allocated per contract type whereas RM is divided by risk type. I hope I am right?
You should not use the VA or the MA when calculating the risk margin. See guideline 2 (paragraph 1.10) from the guidelines on implementing the long term guarantee measures: https://eiopa.europa.eu/Publication...5-111_Final report_GL_Long_Term_Guarantee.pdf
