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Scope
Mid node of solvency-ii-reconciliation-and-capital chain (art-180→181→182). Solvency II technical provisions = BEL + risk margin (cost-of-capital rate on non-hedgeable risk). IFRS 17 insurance contract liabilities = FCF + RA + CSM. Structural differences arise from: different discount curves (SII RFR + UFR vs IFRS 17 locked-in); CSM has no SII equivalent; BEL includes all cashflows while FCF is entity-specific. EIOPA benchmark: life RA typically 33–44% lower than SII risk margin (RA/RM ratio 56–67%).
Presets
Solvency II Technical Provisions
Best estimate liabilities — SII discounted at RFR+UFR.
Risk margin — cost-of-capital on non-hedgeable risk.