Hi, In case the company has a low free surplus- does it lead to a regulatory intervention? I understand it implies that the company has own funds almost equal to SCR which could be a risky position but if the company is not launching a new product or has a matched investment strategy- would a low free surplus be a reason for regulatory intervention? Thanks
If a company were getting close to breaching the SCR (ie being unable to cover it) then this would be identified as part of the regular supervisory monitoring process - and actions would (where possible) be taken to avoid it happening.
