Under the current Solvency II regime, is an insurance company permitted to take the national mortgage guarantee (Nationale Hypotheek Garantie – NHG) into account in determining the solvency capital requirement (SCR) for mortgage loans using the Standard Formula (SF)?
No, a mortgage loan including NHG does not lead to a lower SCR compared to a similar mortgage loan excluding NHG. The amendments made in 2019 to article 192(4) of the Solvency II Delegated Regulation did indeed broaden the possibilities to recognize guarantees in relation to mortgage loans, however the NHG does not comply with all the relevant Solvency II requirements on guarantees in relation to mortgage loans. Article 215(d) of the Solvency II Delegated Regulation for instance requires that an insurance company does not first have to pursue the obligor before obtaining a payment by the guarantor. However, the NHG requires an insurance company to first pursue the obligor before the guaranteed amount is paid out.
Starting January 9, 2025, DNB will request information on potential conflicts of interest through the fit and proper assessments application form.
Read more Fit and Proper Assessments: additional questions on potential conflicts of interest
Dutch mortgage funds received €2 billion in new investments from institutional investors such as pension funds and insurers in the first three quarters of 2024, DNB figures show. This is less than in previous years and can be attributed to market interest rates having risen sharply during 2022.
Read more Investor interest in Dutch mortgage funds continues to decline
On Tuesday 5th November from 3:00-4:45 PM CET DNB will organize a physical information session about fit and proper assessments.
Read more Information session about fit and proper assessments DNB
Embedded finance offers customers the convenience of in-app payment options and on-the-spot insurance. This seamless integration of financial services, available exactly when and where they are needed, makes life simpler. But this innovation also entails new risks.
Read more Embedded finance: striking a balance between convenience and risk in the digital economy
