Technical provisions

Roles that need it

• Actuarial Analyst
• Life & Pensions Actuarial Analyst
• P&C Actuarial Analyst (Pricing & Reserving)
• External Audit (Financial Services)

Skills it belongs to

• Insurance accounting (IFRS 17, technical provisions)
• Insurance pricing, reserving and product economics
• Insurance regulation (Solvency II, IDD, NAIC, IRDAI)

Related concepts

• Solvency IISolvency II is the EU prudential regime for insurers and reinsurers, applied since 1 January 2016. It has three pillars: market-consistent valuation and risk-based capital (SCR and MCR), governance including the ORSA, and supervisory reporting and public disclosure.
• Solvency Capital Requirement (SCR)The Solvency Capital Requirement is the capital an EU insurer must hold under Solvency II to absorb a 1-in-200-year loss over one year (99.5 percent value at risk). It is calculated with the standard formula or an approved internal model. The lower Minimum Capital Requirement (MCR) triggers the strongest supervisory action.
• IBNR (incurred but not reported claims)IBNR is the reserve for claims that have already occurred but have not yet been reported to the insurer, often with a provision for reported claims that are not fully valued. Actuaries estimate it with methods such as chain ladder and Bornhuetter-Ferguson.
• IFRS 17 Insurance ContractsIFRS 17 is the accounting standard for insurance contracts, effective from 1 January 2023. It measures contracts as fulfilment cash flows (discounted, risk-adjusted estimates) plus a contractual service margin that releases profit as the insurer provides cover.

Sources

• Directive 2009/138/EC (Solvency II), EUR-Lex (external site) accessed 31 Oct 2026
• Commission Delegated Regulation (EU) 2015/35 (Solvency II), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.