Finansinspektionen plans to implement the discount rate of the Solvency 2 regulations. The new discount rate will be in place by the turn of the year. Until then, the floor on discount rate will remain in effect.
In the summer of 2012, FI implemented a temporary floor on the discount rate for life insurance companies and occupational pension funds to use when calculating the discount rate. The floor was introduced to prevent short-sighted behaviour that would have a negative impact on future pensioners. The original decision was for a temporary floor until 15 June 2013. FI now plans to extend the floor until the end of the year, at which point FI will implement a new discount rate based on the methodology in Solvency 2, the pending EU regulations for the insurance industry.
FI's proposal will be submitted for consultation in the spring and the planned date for its entry into force is 31 December 2013. In order for insurance companies to be able to plan and manage their operations, FI has chosen to announce the upcoming proposal now.
Martin Noréus, Executive Director of Insurance and Investment Funds, and Otto Elmgart, Head of Large Insurance Companies Division, will be available for questions from the media 10:00AM-11:00AM on Monday, 18 February. The Q&A session will be held in Finansinspektionen's premises at Brunnsgatan 3. Press ID required.
The Q&A session will not be broadcast over the Internet.