Following a query from the secretariat of Insurance Europe, the EC has confirmed that the revised 85 basis point threshold for the activation of the VA country component is already operational. While member states have an obligation to transpose Directive (EU) 2019/2177 within the agreed timelines, the transposition by member states is not necessary for undertakings to benefit from the lower activation threshold.
Concretely, this means;
- All RFR curves published by EIOPA reflect the 85 basis point threshold.
- The upcoming EC implementing acts, from which undertakings must source Q1 2020 technical information, will also be based on the 85 bps threshold.