(1)

Additional assessments of the appropriateness of the external credit assessments referred to in Article 44(4a) of Directive 2009/138/EC should constitute a critical and important activity as part of the risk-management system as they mitigate risks related to the calculation of the technical provisions and the Solvency Capital Requirement.

(2)

The procedural aspects of additional assessments are to be reflected in the policy on risk management of the insurance and reinsurance undertakings referred to in Article 41(3) of Directive 2009/138/EC as additional assessments are part of the risk-management system.

(3)

The nature, scale and complexity of the business of insurance and reinsurance undertakings should be taken into account when these undertakings include the procedural aspects of additional assessments into their policy on risk management and document the results of the additional assessments and the way in which those assessments are carried out.

(4)

This Regulation is based on the draft implementing technical standards submitted by the European Insurance and Occupational Pensions Authority to the Commission.

(5)

The European Insurance and Occupational Pensions Authority has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Insurance and Reinsurance Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council (2),

(a)

the scope and frequency of the additional assessments;

(b)

the manner in which the additional assessments are carried out, including the assumptions on which they are based;

(c)

the frequency of the regular review of the additional assessments and the conditions requiring an ad hoc review of the additional assessments.

(a)

the manner in which the additional assessments are carried out and the results of those assessments;

(b)

the extent to which the results of the additional assessments are taken into account in the calculation of technical provisions and the Solvency Capital Requirement.