Royal Decree 128/2015, 27 February, Amending The Regulation Of Management And Supervision Of Private Insurances, Approved By Royal Decree 2486 / 1998, 20 November, In Terms Of Interest Rate Applicable For The Calculation Of...

Original Language Title: Real Decreto 128/2015, de 27 de febrero, por el que se modifica el Reglamento de Ordenación y Supervisión de los Seguros Privados, aprobado por Real Decreto 2486/1998, de 20 de noviembre, en materia de tipo de interés aplicable para el cálculo de ...

Read the untranslated law here: http://www.boe.es/buscar/doc.php?id=BOE-A-2015-2119

By this Royal decree amending the regulation of management and Supervision of private insurances, approved by Royal Decree 2486 / 1998, 20 November, in order to adjust the interest rate for the calculation of the life assurance provision contained in article 33 paragraphs 1.a). 1st and 1.b). 1st, to obtain a closer types who would be applying the new Solvency II regime regulated in the Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009, on the life insurance, access to insurance and reinsurance activity and exercise. At the same time, it is to avoid the fall of types in the market to suppose for insurance entities a demand for greater amounts of technical provisions that could move to the insured via increase in premiums, and therefore assume them a higher cost. It must be borne in mind that the regime of Solvency II, which will come into force January 1, 2016, foresees a transitional period of sixteen years, so adaptation is progressive. This progressive adaptation that enables the directive would be undermined for Spanish banks in 2015 having to apply the resulting types of the existing wording of article 33.1 of the rules of management and Supervision of private insurances.

This mode increases the original maximum rate at 50 per cent of the difference between the interest rate published by the General Directorate of insurance and pension funds for the financial year preceding the financial year in which results from application and type of interest resulting from the curve euroswap at the point on the curve 11 years at 31 December of the year preceding the financial year in which it is of application. The reference of the curve 11 years being the average duration of the portfolio of life was chosen. From the year 2016, the new methodology for calculating provisions of Solvency II and to implement into our legal system shall apply.

This Royal Decree is run by making use of the authorisation contained in the second final disposition of the consolidated text of the law of management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October.

By virtue, on the proposal of the Minister of economy and competitiveness, according to the Council of State and after deliberation by the Council of Ministers at its meeting of February 27, 2015, have: single article. Modification of the rules of management and Supervision of private insurances, approved by Royal Decree 2486 / 1998, dated 20 November.

Amending paragraph 1, paragraphs a) and b) of article 33.1 of the rules of management and Supervision of private insurances, approved by Royal Decree 2486 / 1998, 20 November, which are written as follows: ' 1. the interest rate applicable for the calculation of the life assurance provision shall not exceed the following limits» (: to) insurance expressed in euros you can choose between: 1 the 60 by 100 of interest average rates in the last quarter of the year preceding the financial year in which obtained by application of his loans into bonds and obligations of the State, increased by 50 per cent of the difference between the interest rate published by the General Directorate of insurance and pension funds for the financial year preceding the year in which result of application and the type of interest resulting from the curve euroswap at the point on the curve 11 years at 31 December of the year preceding the financial year in which result from application. The previous calculus may not exceed 60 per 100 of interest average rates in the last quarter of the financial year preceding the result of application of borrowing materialized in bonds and obligations of the State to twenty or more years.

The General Directorate of insurance and pension funds will publish on its website the type of interest resulting from the application of the above criteria.

(b) on insurance expressed in a currency other than the euro can choose between: 1 the 60 by 100 of interest average rates in the last quarter of the year preceding the financial year in which obtained by application of his loans into bonds and obligations of the respective State, increased by 50 per cent of the difference between the interest rate published by the General Directorate of insurance and pension funds for the preceding financial year to the exercise in which results from application and type of interest resulting from the curve euroswap at the point on the curve 11 years at 31 December of the year preceding the financial year in which result from application. The previous calculus may not exceed 60 per 100 of interest average rates in the last quarter of the financial year preceding the result of application of borrowing materialized in bonds and obligations of the respective State to twenty or more years.

The General Directorate of insurance and pension funds will publish on its website the type of interest resulting from the application of the above criteria.»

First final provision. Skill-related title.

This Royal Decree is issued under cover of the provisions of article 149.1.11. 2nd and 13th of the Constitution, which attributes to the State competition on the basis of the management of credit, banking and insurance, and on the bases and coordination of the general planning of economic activity.

Second final provision. Entry into force.

This Royal Decree shall enter into force on January 1, 2015.

Given in Madrid, on 27 February 2015.

PHILIP R.

The Minister of economy and competitiveness, LUIS DE GUINDOS jury