New Swedish discount curve rejects Solvency II methodology
Extrapolation method changed following concerns Smith-Wilson method impractical
The Swedish financial regulator will introduce a temporary risk-free discount curve for insurers using an extrapolation methodology that contradicts Solvency II proposals, amid concerns that the latter is unworkable.
Finansinspektionen (FI) announced at the end of September a second consultation on its proposed changes to the extrapolation of the discount curve for valuing long-term liabilities. The new methodology is intended to ease the capital burden on Swedish insurers up until the
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