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Risk Margin Discounted SCR Term

Calculate the Discounted Solvency Capital Requirement Term instantly.

€
%

Discounted SCR Term

€2 887 306

1Step 1

Discount Exponent

Discount Exponent=Projection Year Index+1\textit{Discount Exponent} = \textit{Projection Year Index} + 1
2Step 2

Discount Factor

Discount Factor=1+Risk-Free Rate for DiscountingDiscount Exponent\textit{Discount Factor} = {1 + \textit{Risk-Free Rate for Discounting}}^{\textit{Discount Exponent}}
3Step 3

Discounted SCR Term

Discounted SCR Term=Projected Reference Undertaking SCR×Time Reduction FactorDiscount Factor\textit{Discounted SCR Term} = \frac{\textit{Projected Reference Undertaking SCR} \times \textit{Time Reduction Factor}}{\textit{Discount Factor}}

Understand the Risk Margin Discounted SCR Term

Overview

This calculator isolates one Article 37 discounted projected-SCR term for the risk-margin calculation.[1]

Input Terms

  • Projected Reference Undertaking SCR: The SCR amount for the selected projection year.
  • Time Reduction Factor: The Article 37 future-risk time factor for the same year.
  • Risk-Free Rate for Discounting: The risk-free rate used for the year-plus-one discount denominator.
  • Projection Year Index: The projection year used to set the discount exponent.

Technical Rationale

The calculator discounts one projected SCR contribution:

`Discounted SCR term = projected SCR x time factor / (1 + risk-free rate)^(year + 1)`

Important Notes

  • This is a single-term calculator. The projection-year run-off, time factor, and risk-free-rate selection are separate upstream decisions.
  • The result feeds the discounted-SCR sum calculator.
  • Where the risk-free rate comes from an EIOPA curve, the source, currency, valuation date, and version evidence remain internal audit scope.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 37 (Risk margin) - EIOPA

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.