Undertaking Specific Parameters per il settore Danni nel contesto Solvency II: specifiche tecniche e informazioni regolamentari

Following the publication of Commission's Delegated Act containing implementing rules for Solvency II and the publication of EIOPA's Guidelines on Pillar I, the purpose of this paper is to underline the main aspects of the new insurance regulatory framework. EIOPA calibration of the premium and reserve risk factors in the Non-Life and health non-SLT underwriting risk module of the SCR standard formula may not be representative of the specific business and risk profile of different undertakings. In order to tackle this problem, Undertaking Specific Parameters (USP) can be calibrated by each company and submitted to the regulator's approval. In this paper, we go through the process of USP calibration and validation, with a high emphasis on the tests that undertakings should apply in order to show that data requirements are satisfied.