According to Article 52 of Solvency II Directive, EIOPA is requested to publicly disclose capital add-ons, set by insurance or reinsurance undertakings following request from NCAs, and to report them annually to EU institutions (European Parliament, the Council and the Commission).

Capital add-ons reported are those imposed pursuant to the Article 37 of Solvency II Directive and Articles 276-287 of Delegated Regulation (EU) 2015/35.

Until 2021 EIOPA published a full qualitative report on the use of capital add-ons in the European Economic Area (EEA). Since 2022, EIOPA has been publishing a statistical update, considering the low use of capital add-ons. The statistical update is based on Solvency II data (incl. historical data without the UK) and consists of this dashboard as well as an Excel file containing all the available data.

Capital add-ons imposed at solo level

Figure 1 - Capital add-ons at solo level in the EEA

Source: EIOPA Annual reporting solo

Figure 2 - Capital add-ons at solo level by NCA country and undertaking type

Note:
- Only countries that had at least one capital add-on imposed during the reference period are shown.
- The Irish undertaking was in liquidation from 2020 to 2022.
Source: EIOPA Annual reporting solo

Figure 3 - Capital add-ons at solo level by undertaking type and type of capital add-on

Note:
- Only countries that had at least one capital add-on imposed during the reference period are shown.
- For 2021, one capital add-on of a non-life undertaking has been imposed under both Article 37(1)(a) and 37(1)(c). EIOPA, however, does not double-count this capital add-on.
- Articles 37(1)(a) - (d) refer respectively to i) standard formula significant risk profile deviation, ii) internal model significant risk profile deviation, iii) significant system of governance deviation, and iv) significant risk profile deviation following the application of the matching adjustment, volatility adjustment or transitional measure
Source: EIOPA Annual reporting solo

Figure 4 - Capital add-ons measured as a percentage of the SCR

Source: EIOPA Annual reporting solo

Table 1 - Capital add-ons measured as a percentage of total SCR for undertakings with capital add-ons

Note: The Irish undertaking was in liquidation from 2020 to 2022.
Source: EIOPA Annual reporting solo

Capital add-ons imposed at group level

Figure 5 - Capital add-ons at group level by NCA country and type of capital add-on

Note:
- Only countries that had at least one capital add-on imposed during the reference period are shown.
- Capital add-ons reported at group level as a consequence of a capital add-on imposed at solo level are excluded.
- Articles 37(1)(a) - (d) refer respectively to i) standard formula significant risk profile deviation, ii) internal model significant risk profile deviation, iii) significant system of governance deviation, and iv) significant risk profile deviation following the application of the matching adjustment, volatility adjustment or transitional measure
Source: EIOPA Annual reporting group

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Statistical update on the use of capital add-ons

September 2024