preamble_17

WHERE IT IS NECESSARY THAT , OVER AND ABOVE TECHNICAL RESERVES , INCLUDING MATHEMATICAL RESERVES , OF SUFFICIENT AMOUNT TO MEET THEIR UNDERWRITING LIABILITES , INSURANCE UNDERTAKINGS SHOULD POSSESS A SUPPLEMENTARY RESERVE , KNOWN AS THE SOLVENCY MARGIN , REPRESENTED BY FREE ASSETS AND , WITH THE AGREEMENT OF THE SUPERVISORY AUTHORITY , BY OTHER IMPLICIT ASSETS , IN ORDER TO PROVIDE AGAINST BUSINESS FLUCTUATIONS ; WHEREAS , IN ORDER TO ENSURE THAT THE REQUREMENTS IMPOSED FOR SUCH PURPOSES ARE DETERMINED ACCORDING TO OBJECTIVE CRITERIA WHEREBY UNDERTAKINGS OF THE SAME SIZE WILL BE PLACED ON AN EQUAL FOOTING AS REGARDS COMPETITION , IT IS DESIRABLE TO PROVIDE THAT THIS MARGIN SHALL BE RELATED TO ALL THE COMMITMENTS OF THE UNDERTAKING AND TO THE NATURE AND GRAVITY OF THE RISKS PRESENTED BY THE VARIOUS ACTIVITIES FALLING WITHIN THE SCOPE OF THE DIRECTIVE ; WHEREAS THIS MARGIN SHOULD THEREFORE VARY ACCORDING TO WHETHER THE RISKS ARE OF INVESTMENT , DEATH OR MANAGEMENT ONLY ; WHEREAS IT SHOULD ACCORDINGLY BE DETERMINED IN TERMS OF MATHEMATICAL RESERVES AND CAPITAL AT RISK UNDERWRITTEN BY AN UNDERTAKING , OF PREMIUMS OR CONTRIBUTIONS RECEIVED , OF RESERVES ONLY OR OF THE ASSETS OF TONTINES ;

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Source: EUR-Lex (Cellar) · retrieved 2026-10-29 · Text as adopted (Official Journal); later amendments are not incorporated in this text.