EIOPA has informed the secretariat of Insurance Europe of the following developments regarding the risk-free interest rate term structures:
- UFR for 2019: EIOPA published a preliminary derivation of the UFRs for 2019 in in line with the updated UFR methodology
Risk-free interest rate term structures – Preliminary calculation of the UFR for 2019.pdf
This would bring UFR for the Euro to 3.90% in 2019. EIOPA will announce the UFRs for 2019 at the end of March 2018.
- VA for Danish krone: EIOPA is currently reviewing the calculation of the VA for the Danish krone and it believes that changes are necessary, in particular regarding the yields of the Nykredit index. To keep the number of changes to the VA calculation limited, EIOPA intends to combine the implementation of the result from the VA review and the update of the representative portfolios for the Danish Krone. These changes will be applicable as from end-June 2018. The representative portfolios for all other currencies and countries will be applied as initially planned from end of March 2018 onwards.