Solvency II: Recalculation of the Transitional Measure on Technical Provisions

The Transitional Measure on Technical Provisions (TMTP relief) permits (re)insurers to gradually phase in any increase in technical provisions that must be held for business written prior to 1 January 2016 arising from the introduction of Solvency II at that date. This update summarises findings on TMTP relief and looks at different approaches to recalculating the TMTP relief and the associated key issues and challenges.