The Insurer And Reinsurer Solvency Capital Requirements And The Calculation Of The Own Funds Regulations Rules

Original Language Title: Apdrošinātāju un pārapdrošinātāju maksātspējas kapitāla prasības un pašu kapitāla aprēķināšanas normatīvie noteikumi

Read the untranslated law here: https://www.vestnesis.lv/op/2015/158.4


Financial and capital market Commission, the provisions of regulations No 130 in Riga august 12, 2015 (financial and capital market Commission Council meeting Protocol No 28 4. p.) The insurer and reinsurer solvency capital requirements and the calculation of the own funds regulations Regulations Issued in accordance with the insurance and reinsurance law article 118 article 119 and the eighth part i. General questions 1. "insurer and reinsurer solvency capital requirements and the calculation of the own funds regulations" (hereinafter-the rules) determines the calculation of the solvency capital requirement the procedures in accordance with the standard formula and used for the calculation of own funds. 2. The rules are binding on the insurance companies and affiliates of the Member insurer (hereinafter insurer), as well as reinsurance companies (hereinafter-reinsurers). 3. the terms used in the rules: 3.1 the signature of risk (underwriting the risk), the loss or the value of insurance liabilities increase in risk caused by inadequate determination of insurance premiums and the assumptions in the calculation of technical provisions; 3.2. premium and reserve risk (premium and reserve risk)-the risk of loss or the value of insurance liabilities increase the risk arising from fluctuations in the insurance case, time frequency and severity, as well as claims handling time and costs; 3.3. risk of disaster (catastrophe risk)-the risk of loss or the value of insurance liabilities increase the risk arising from the significant uncertainty of pricing and assumptions of creating reserves for extreme or exceptional cases; 3.4 risk of mortality (mortality risk)-the risk of loss or the value of insurance liabilities increase the risk arising from changes in the mortality level, trend, or volatility, if the increase in mortality rates lead to insurance liabilities increase in value; 3.5. the longevity risk (longevity risk)-the risk of loss or the value of insurance liabilities increase the risk arising from changes in the mortality level, trend, or volatility, if the decline in mortality rates lead to insurance liabilities increase in value; 3.6. disability and morbidity risk (disability – morbidity risk)-the risk of loss or the value of insurance liabilities increase the risk arising from changes in disability, disease and incidence rate level, trend, or volatility; 3.7. the risk of costs (expense risk)-the risk of loss or the value of insurance liabilities increase the risk arising from changes in the level of expenditure, trend or volatility, from servicing insurance or reinsurance contracts; 3.8. risk of revision (revision risk)-the risk of loss or the value of insurance liabilities increase the risk arising from fluctuations in the level of review of indicators, trend, or volatility of the applied life annuities (annuit), in connection with the change in the legal environment or State of health of the insured person; 3.9. the suspension of the policy risk (lapse risk)-the risk of loss or the value of insurance liabilities increase the risk arising from changes in the non-continuation of the policy (including the non-continuation of the benefit option or continuing to use) of the event or from the policy of suspension of permanent growth indicators or reduction; 3.10. market risk (market risk)-the loss or negative financial situation changes the risks incurred, directly or indirectly, assets, liabilities and financial instruments market price level fluctuation and volatility; 3.11. interest rate risk (interest rate risk) – assets, liabilities and financial instruments to changes in the value of the sensitivity of the maturity composition of interest rates or interest rate volatility; 3.12. equity risk (equity risk) – assets, liabilities and financial instruments to changes in the sensitivity of equity market price level or volatility; 3.13. property (property risk) risk assets and financial instruments, the value of sensitivity to changes in the real estate market price level or volatility; 3.14. rate spread (spread risk) risk-assets, liabilities and financial instruments to changes in the sensitivity of the yield spreads in the level or volatility relative to the risk-free interest rate maturity composition; 3.15. foreign exchange risk (currency risk) – assets, liabilities and financial instruments to changes in the value of the sensitivity or fluctuations in the exchange rate level; 3.16. market risk concentration (market risk concentration) – the insurer or reinsurer additional risks arising from the lack of diversification of either asset portfolio, or from excessive risk of default by the issuer of the securities to the individual or group of related issuers; 3.17. counterparty default risk (counterparty default risk)-the loss or negative change in financial state risks arising from counterparty and customer kredītstāvokļ fluctuations, insurer or reinsurer; 3.18. intangible asset risk (asset risk of intangibl)-the loss or negative change in financial state risks arising from an intangible asset value fluctuation; 3.19. the operational risk (operational risk), the risk of loss resulting from inadequate or incomplete internal process, human error, progress or internal transactions are fraudulent, systems or external conditions; 3.20. risk mitigation techniques – all methods that insurers or reinsurers to put part or all of their risks, the risk to the other party; 3.21. the impact of diversification – insurers, reinsurers and groups the risk in the value of the transaction in connection with business diversification according to the possibility of a risk to offset negative results with other risk more favourable result if these risks are not fully interconnected; 3.22. the use of other terms in these regulations comply with the financial and capital market Commission (hereinafter the Commission) on 13 January 2006 the Regulation No 21 "insurance company, insurer of the Member not affiliate, reinsurance company and not of the Member reinsurers affiliate annual report and the consolidated annual report of the legislative provisions used terms ". II. structure of the solvency capital requirement and structure 4. Solvency capital requirement on the basis of the standard formula, as follows: = PamataMKP + MKPoperac + KOREKCTR MKP; ATLNOD which: – the solvency capital requirement of the MKP; PamataMKP – the basic solvency capital requirement determined in accordance with the provisions of paragraph 5 and 12; MKPoperac-operational risk capital requirements fixed in accordance with the provisions of paragraph 20-22; KOREKCTR; ATLNOD-the adjustment according to the technical provisions and deferred taxes the ability to cover losses, determined in accordance with the provisions of paragraph 23-25. 5. the basic solvency capital requirement calculation includes individual risk modules, collected, taking into account the correlation coefficients, in accordance with the provisions of paragraph 12. It consists of the following modules: the risk 5.1. non-life insurance underwriting risk; 5.2. life insurance underwriting risk; 5.3. health insurance underwriting risk; 5.4. market risk; 5.5. counterparty default risk; 5.6. intangible asset risk. 6. An insurance or reinsurance transactions to apply to it the rules 5.1 – 5.3. signing of the risks referred to in point module that best reflects the underlying transaction risk characteristics. 7. in determining the solvency capital requirement in accordance with insurance and reinsurance law article 119 the principles laid down in these rules referred to in point 4 for the production of risks are used correlation coefficients indicated in paragraph 12 of these rules. 8. Each of the provisions referred to in paragraph 5 of the risk modules are calibrated using a value at risk (VaR) measures the confidence level 99.5 percent within one year. Modular construction of risk takes into account the impact of diversification according to the Delegation of the European Commission Regulation (EU) 2015/35 (2014-10 October), complementary to the European Parliament and Council directive 2009/138/EC relating to the taking-up and pursuit of the business of insurance and reinsurance (Solvency II) (hereinafter – EU Regulation No 2015/35). 9. The insurer or reinsurer shall apply the requirements of this Regulation as regards the risk module design and specifications, and the calculation of the basic solvency capital requirement, and making any simplified calculation, pursuant to paragraph 26 of these regulations. 10. with regard to disaster risk life, non-life and health insurance underwriting risk modules, the calculation shall take into account the geographical specificities according to EU Regulation No 2015/35 requirements. 11. If the insurer or reinsurer is exposed to basis risk (basis risk) resulting from currency mismatch between the signing of the risks and risk mitigation technique, this risk is taken into account in the calculation of the solvency capital requirement of signing the risk module according to EU Regulation No 2015/35 requirements. III. The basic solvency capital requirement calculation 12. the basic solvency capital requirement shall be calculated as follows: where: represents the risk with MKP module "i" and the MKPj represents the risk module "j" and "i, j" means that the sum of the different indicators should cover all possible "i" and "j". The MKP and MKPj calculation shall be replaced by the following modules:-with the MKPnedzīvīb denotes the non-life underwriting risk module; with the MKPdzīvīb represents the life insurance underwriting risk module; with the MKPveselīb stands for the health insurance of the risk of signing module; — MKPtirg to denote market risk module; — MKPsaistīb of stands of counterparty default risk module. With the factor Corr, j represents the "i" and "j" column in the row contains the unit this correlation matrix: j market default life health non-life 1 0.25 0.25 0.25 i market default 0.25 0.25 1 0.25 0.25 0.5 0.25 0.25 1 0.25 0 life health 0.25 0.25 0.25 0.25 1 0 0.5 0 0 1 non-life With MKPnemater aka the represents an intangible asset risk. 13. Non-life insurance underwriting risk module shall reflect the risk arising from the non-life insurance's commitment to cover risks and used in the operation of insurers underwriting methods. This module of the insurer or reinsurer taken into account of the uncertainty in relation to the existing insurance and reinsurance obligations, as well as with new insurance and reinsurance obligations planned to take a further 12 months. It is calculated according to the EU Regulation No 2015/35 requirements as a combination of the capital requirements for non-life insurance premium and reserve risk, non-life insurance policies of disaster risk and the risk of suspension subitems. 14. Life insurance underwriting risk module shall reflect the risk arising from life assurance commitment to cover risks and used in the operation of insurers underwriting methods. It is calculated according to the EU Regulation No 2015/35 requirements as a combination of the capital requirements for risk of mortality, longevity risk, disability and morbidity risk, life insurance risk, the review of the expenditure risk, risk suspension of coverage and life insurance disaster risk subitems. 15. Health insurance underwriting risk module shall reflect the risk arising from health insurance contracts signed, considering both risks and segto underwriting methods used by the insurer, whether or not the signature or not apply to life insurance technical principles. It is calculated according to the EU Regulation No 2015/35 requirements as a combination of the capital requirements for the following subitems: 15.1 the health insurance who do not have adequate life insurance technical principles, risk of signing apakšmodul; 15.2. the health insurance with adequate life insurance technical principles, risk of signing apakšmodul; 15.3. the health insurance disaster risk apakšmodul. 16. the market risk module shall reflect the risk arising from financial instruments market or volatility in the level of prices, which the insurer or reinsurer will affect the value of assets and liabilities. The market risk module shall reflect the assets and liabilities of the structural inconsistencies, especially taking into account the duration of assets and liabilities (duration). It is calculated according to the EU Regulation No 2015/35 requirements as a combination of the capital requirements for interest rate risk, equity securities risk, property risk, spreads risk, foreign currency risk and market risk concentration of the subitems. 17. market risk equity risk apakšmodul, which was calculated in accordance with the standard formula, is included in a symmetrical adjustment (symetric adjustment) the capital requirements laid down to cover the stock price changes in the level of risk. The insurer or reinsurer shall apply the symmetrical adjustment, which according to EU Regulation No 2015/35 requirements, the European insurance and occupational pensions authority and which are periodically posted on its website. 18. the counterparty default risk module shall reflect the insurer's or reinsurer's potential losses in connection with a business partner and the customer kredītstāvokļ an unexpected deterioration or default cases in the next 12 months. It is calculated according to the EU Regulation No 2015/35:18.1. the counterparty default risk module takes into account the risk mitigation contracts, such as contracts of reinsurance, securitisation transactions and derivatives, broker receivables as well as other forms of credit that are not covered by spreads the risk apakšmodul. This module takes into account the insurer's or reinsurer's good looking or security or other guarantee and associated risks; 18.2. for each counterparty in this module takes into account the relevant insurer or reinsurer's counterparties total exposure value in relation to the counterparty, irrespective of legal form for contractual obligations in relation to the insurer or reinsurer. 19. The insurer or reinsurer calculates the risk of intangible assets according to EU Regulation No 2015/35 requirements. IV. operational risk capital requirements 20. operational risk capital charge is calculated according to the EU Regulation No 2015/35 requirements. 21. If a life insurance contract investment risk policyholders, capital requirements for operational risk shall take into account in the calculation of the amount of expenditure in the year of the insurance liabilities. 22. with regard to insurance and reinsurance transactions, which do not have this provision paragraph 21 contains transactions, capital requirements for operational risk shall take into account in the calculation of the amount of the transactions referred to in earned premiums and technical provisions. In this case, the capital requirement for operational risk shall not exceed 30 percent of the basic solvency capital requirement in respect of those insurance and reinsurance transactions. V. correction of technical provisions and deferred tax loss of ability to cover 23. Adjustment according to the technical provisions and deferred tax loss relief capacity (adjustment for the loss-absorbing capacity of technical provision and deferred taxes), determined in accordance with the EU Regulation No 2015/35 requirements, reflects the unexpected loss of potential compensation, while decreasing the technical provisions or deferred taxes, or both. 24. in determining the adjustment according to the technical provisions of the ability to cover losses, take into account the risk mitigation effect provided by the insurance contract future discretionary benefits (future discretionary benefits) if the insurer or reinsurer can detect that such benefit reductions can be used to cover unexpected losses when they occur. Risk mitigation effect provided by future discretionary benefits, is not greater than technical provisions and deferred taxes relating to these future discretionary possessions. 25. The application of this provision of paragraph 24, diskrecionāro of the future benefits under adverse conditions compared with the value of such benefits in accordance with the technical provisions best estimate (best estimate) calculates the underlying assumptions. Vi. Standard formulas simplifications 26. According to the EU Regulation No 2015/35 insurers or reinsurers conditions is authorized to use the simplified calculation, which set EU Regulation No 2015/35 individual apakšmodul or risk module where the nature, the amount of risk and complexity justify it and where it would be disproportionate to require the insurer or reinsurer for a standardized method of calculation. VII. The insurer or reinsurer for the special use of the parameters, 27. If you have received permission from the Commission, the insurer or reinsurer, using a standard formula, you can replace the standard formula parameter subgroup with the insurer or reinsurer special parameters (undertaking specific parameters), calculation of the life, non-life and health insurance underwriting risk modules. 28. the insurer or reinsurer special parameters to be calibrated on the basis of the insurer's or reinsurer's internal data or data which relates directly to the insurer or reinsurer that transactions using standardized methods. 29. If there are grounds to believe that the solvency capital requirement calculated in accordance with the standard formula, not appropriate, because the insurer or reinsurer's risk profile significantly different from the standard formula for the calculation of the underlying assumptions, the Commission is entitled to request the insurer or reinsurer shall replace the standard formula used in the calculation of the parameters of subgroups with this insurer or reinsurer has special characteristics, calculation of the life, non-life and health insurance underwriting risk modules. The insurer or reinsurer special parameters are calculated pursuant to the insurance and reinsurance law article 119 of the third and fourth subparagraphs. VIII. detection of 30 equity. Equity capital consists of these provisions referred to in paragraph 31 the basic equity (basic own funds) and referred to in paragraph 32 additional own funds (ancillary own funds). 31. the basic kinds of equity assets and liabilities measured under the insurance and reinsurance law 98-115, difference and subordinated liabilities. The basic equity is reduced by the insurer or reinsurer in the same amount of shares held. The basic equity items is determined according to EU Regulation No 2015/35 requirements. 32. additional own capital consists of EU Regulation No 2015/35 established off-balance-sheet items which are not basic own funds and the payment of which can be claimed to cover the insurer's or reinsurer's operating losses. 32.1. If additional equity item (instrument) is paid or a payment is requested, it is recognised as an asset in the accounts and excluded from the additional own funds items. 32.2. The amount that applies to each additional equity item, this item reflects the existing loss relief potential, and its assessment is based on a prudent and realistic assumptions. If additional equity item (instrument) is a fixed nominal value, this item (instrument) must be equal to its nominal value, if it reflects this item as appropriate (instrument) to cover potential losses. 33. additional equity items amounts included in equity, if you have received permission from the Commission, either on the cash amount for each additional item of equity, or the method of determining the additional equity each item amount. 34. additional funds (surpl funds): the insurer or reinsurer's 34.1. Basic own funds are included in the Supplementary Fund, that is, the accumulated profit that has not been available for distribution to policyholders and beneficiaries. This equity item reflects the amount that the Commission 13 January 2006 no. 21 "provisions of the insurance companies, not insurers of member affiliates, reinsurance and the reinsurers Member affiliate annual report and the consolidated annual report of the legislative provisions" contained in the balance sheet item "reserve estimates for profit participation"; 21.3. the reserve estimates for participation in the profits is not considered an insurance or reinsurance undertaking, but considered the basic equity item only if it meets the criteria laid down in paragraph 37.1 of these rules. 35. Capital according to EU Regulation No 2015/35 requirements is included in the reduction of the presence of the insurer or pārapdrošinātaj (participation), financial institutions and credit institutions. Participation in financial institutions and credit institutions include: 21.8. the insurer or reinsurer's investments in credit institutions, financial institutions (European Parliament and Council Regulation (EC) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (hereinafter the EU Regulation No. 575/2013) sense) and investment brokerage company (financial instruments market law) share capital where, directly or by way of control for 20 or more percent of the voting rights or direct or by way of control for participation, which covers 20 percent of the share capital and over or voting shares; 35.2. the insurer or reinsurer's investment in this provision under section 35.1 of the credit institutions, financial institutions and investment brokerage company subordinated capital and tier two capital instruments referred to in the EU Regulation No. 575/2013. IX. Equity items 36. breakdown of equity items are classified into three levels. Classification of these items depends on whether they have a core capital or additional capital items and the extent to which they possess the following characteristics: 36.1. item is available or you can use it on demand to completely cover the insurer's or reinsurer's operating losses while continuing the action, as well as in the case of winding-up (permanent availability); 36.2. in the event of liquidation items (instruments) total is available to cover losses, and items (instruments) released its holder refuses to comply with all other obligations, including insurance and reinsurance obligations to policyholders and insurance and reinsurance contract beneficiaries (subordination). 37. In assessing the extent to which the own funds items (Tools) have these rules 36.1 and 36.2 signs specified in paragraph (both at the time of the assessment, and in the future), take into account the following: 37.1. items (instruments) duration (duration), in particular whether the item (instrument) is refundable or it is open-ended. If the equity item (instrument) is repayable within a specified period, takes into account items (instruments) the relative duration compared to the insurer or reinsurer of the insurance or reinsurance undertaking duration; 37.2. items (instruments) or contract terms do not provide for requirements or incentive to repay the nominal amount (in the absence of incentives for repayment); 37.3. items (instruments) or contract terms do not provide for mandatory fixed charges (minimum service in the absence of costs); 37.4. or item (instrument) is a burden (the burden of non-existence). 38. The main criteria for classification levels: level 1, 38.1. Basic own funds classified items, if the EU Regulation No 2015/35 requirements largely possess features specified in rules 36.1 and 36.2 of this., taking into account this provision in paragraph 37; 38.2. level 2:38.2.1. basis are classified in equity items if they are in line with EU Regulation No 2015/35 requirements largely possess features specified in this rule 36.2, taking into account this provision in paragraph 37; 38.2.2. additional items of own funds, if those in the EU Regulation No 2015/35 requirements largely possess features specified in rules 36.1 and 36.2 of this., taking into account this provision in paragraph 37; 23.8. level 3 according to EU Regulation No 2015/35 requirements are classified in any of the basic and additional items of own funds, which do not comply with this provision and in paragraph 23.7 38.2 the said criteria. 39. Equity classification levels: 24.3. equity items for the purpose of classifying the insurer or reinsurer shall comply with the EU Regulation No 2015/35 equity laid down a list of items; 39.2. If equity item not included this provision in the list referred to in paragraph 39.1, insurer or reinsurer to be evaluated and classified in accordance with the provisions of paragraph 38. The insurer or reinsurers is allowed to classify the item equity at their level, if the Commission's authorisation. X. use of own capital 40. use capital amount, which ensure the solvency capital requirement, is equal to the amount of level 1, level 2 and use level 3 total amount used according to EU Regulation No 2015/35 the quantitative limits specified. 41. use the basic equity in sum, which ensure minimum capital requirements, is equal to the amount of level 1 and level 2 Basic equity items amounts used under EU regulation total no 2015/35 the quantitative limits specified. XI. the life and non-life insurance activities in the separation of 42. If the EU Regulation No 2015/35 particular imputed life insurance minimum capital requirements (the notional life minimum Capital requirement), and EU Regulation No 2015/35 given the notional non-life minimum capital requirement (notional non-life minimum Capital requirement), the insurer who made life and non-life insurance, use the remaining equity items used to comply with the solvency capital requirement in respect of life or non-life insurance business as a whole. 43. the use of accounts prepared by the separation of life and non-life insurance business, the insurer shall prepare a report stating the applicable basic own funds items that bear the imputed life insurance minimum capital requirements and the notional non-life minimum capital requirement in accordance with the provisions of paragraph 41. XII. Authorisation procedure 44. for this provision, the Commission referred to in paragraph 27 of the insurer or reinsurer of permission for use of specific parameters, insurer or reinsurer shall submit to the Commission a reasoned application and documents according to the European Commission's implementing Regulation (EU) No 2015/498 (24 March 2015), establishing implementing technical standards regarding the approval of the supervisory authorities of the insurer or reinsurer procedure specific parameters for use in accordance with European Parliament and Council directive 2009/138/EC , requirements. 45. for the provisions referred to in paragraph 33 of the Commission's additional equity items for inclusion in the equity, the insurer or reinsurer shall submit to the Commission a reasoned application and all necessary information to the European Commission's implementing Regulation (EU) No 2015/499 (24 March 2015), establishing implementing technical standards concerning the procedures to be used for the granting of the approval of the supervisory authority additional equity items for use in accordance with European Parliament and Council directive 2009/138/EC , requirements. If the Commission is authorized to use the method, which specifies the additional equity each item amount, the amount determined by these methods be included in the own funds are granted for a fixed period of time. 46. for this rule 24.4. The Commission referred to in the authorization of the equity items of the respective classification level, insurer or reinsurer shall submit to the Commission a reasoned application and documents proving: 46.1. equity items compliance with this provision in paragraph 38 criteria for classifying a given level; 46.2. the fact that the equity items (instruments) contractual provisions are legally enforceable in all relevant jurisdictions; 46.3. the fact that the equity item (instrument) is fully paid. 47. In approving the equity items of the evaluation and classification of the level Commission based on criteria set by the EU Regulation No 2015/35. Xiii. Closing questions. The insurer or reinsurer 48 shall submit to the Commission information on the solvency calculation, which includes the solvency capital requirement, minimum capital requirements and own funds calculated according to EU Regulation No 2015/35 report of the given content and form the following periods of time: 29.9. annual solvency calculation 48.1.1. for the reporting period: ending in 2016, on 31 December, no later than 20 weeks after the end of the reporting period; 48.1.2. for the reporting period that ends December 31, 2017, not later than 18 weeks after the end of the reporting period; 48.1.3. for the reporting period that ends December 31, 2018, no later than 16 weeks after the end of the reporting period; 48.1.4. for the reporting period that ends December 31, 2019, not later than 14 weeks after the end of the reporting period; 48.2. the solvency calculation: quarterly 48.2.1. for each quarter of 2016, no later than eight weeks after the end of the reporting period; 48.2.2. for each quarter of 2017. not later than seven weeks after the end of the reporting period; 48.2.3.2018 quarter not later than six weeks after the end of the reporting period; 2019.48.2.4. for each quarter, not later than five weeks after the end of the reporting period; 48.3. the reference periods, beginning with the January 1, 2020, according to the EU Regulation No 2015/35 particular recurrence and deadlines. 49. Notwithstanding the provisions of paragraph 38 requirements basic own funds items (instruments) from January 1, 2016. the period to 2026 January 1 are classified as level 1 Basic own funds provided that such instruments: 30.5. issued before 18 January 2015; 30.6.2015 December 31 can be included in the assets of up to 50 percent of the amount of the solvency margin or own funds pursuant to Commission September 15, 2006 regulations No 148 ' non-life insurance solvency requirements and own funds calculation rules ", Commission September 15, 2006 regulations No 149" life insurer solvency requirements and own funds calculation rules "and the Commission of 5 September 2008. Regulations No 128 reinsurers solvency requirements and the calculation of the own funds regulations"; 30.6. otherwise be classified at level 1 or level 2 according to paragraph 38 of these rules. 50. Notwithstanding the provisions of paragraph 38 requirements basic own funds items (instruments) from 1 January 2016 for the period up to 1 January 2026 will be classified as level 2 Basic own funds provided that such instruments: 50.1. issued before 18 January 2015; 50.2.2015 December 31 can be included in the assets of up to 25 percent of the amount of the solvency margin or own funds pursuant to Commission September 15, 2006 regulations No 148 ' non-life insurance solvency requirements and own funds calculation rules ", Commission September 15, 2006 regulations No 149" life insurer solvency requirements and own funds calculation rules "and the Commission of 5 September 2008. Regulations No 128 reinsurers solvency requirements and the calculation of the own funds regulations rules". 51. The calculation of the market risk concentration apakšmodul and spreads the risk apakšmodul in accordance with the standard formula, the following transitional provisions: 51.1. until 2017 31 December exposures to Member States ' central Governments or central banks denominated and funded in the currency of any Member State, uses the same standard parameters which apply to such exposures denominated and funded in the currency of the Member State concerned; 51.2. from 2018 2018 1 January to 31 December of the standard parameters for exposures to Member States ' central Governments or central banks denominated and funded in the currency of any other Member State, be reduced by 80 percent; 51.3. from 1 January 2019 till 2019. December 31, standard parameters to be used for exposures to Member States ' central Governments or central banks denominated and funded in the currency of any other Member State shall be reduced by 50 percent; 51.4. starting with January 1, 2020 and future exposures to Member States ' central Governments or central banks denominated and funded in the currency of any other Member State, do not reduce the standard parameters. 52. when calculating the equity risk apakšmodul in accordance with the standard formula, the standard parameters applicable to equity securities, insurer or reinsurer which bought 2016 January 1 or up to this day, calculated as a weighted average of the following parameters: 52.1.22 percent; 52.2. the standard parameters to be used when calculating the equity risk apakšmodul in accordance with the standard formula in accordance with EU Regulation No 2015/35 requirements of article 169. 53. The rules referred to in paragraph 52.2 parameter weighting at least linear growing at the end of each year, ranging from 0 percent in the year beginning 1 January 2016, up to 100 percent on January 1, 2023. The criteria to be observed and the capital securities, which may set a transitional period is determined according to EU Regulation No 2015/35 requirements of article 173. 54. This provision, paragraph 4-26, 29-32, 34-24.3, 40 to 43 and 48 to 53 shall enter into force on January 1, 2016. 55. the decisions adopted by the Commission for the approval of additional own funds according to point 33 of these rules, the classification of equity instruments of approval under this provision the requirements of paragraph 24.4 and insurers or reinsurers special approval for the parameters under this provision the requirements of paragraph 27 shall enter into force not earlier than 1 January 2016. 56. By January 1, 2016, the Commission shall lapse on 15 September 2006 the Regulation No 148 ' non-life insurer solvency requirements and own funds calculation rules ", Commission of 15 September 2006 rules no 149" life insurer solvency requirements and own funds calculation rules "and the Commission of 5 September 2008 No. 128 of the rules of the solvency requirements of reinsurers and the calculation of the own funds regulations rules". Informative reference to European Union directive rules included provisions arising from the directive of the European Parliament and of the Council in 2009/138/EC relating to the taking-up and pursuit of the business of insurance and reinsurance (Solvency II). Financial and capital market Commission President k. Zakuli States