Regulator Action Under Solvency II
For this new topic, is it possible for surplus will be negative? or do we cap it at 0?
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For this new topic, is it possible for surplus will be negative? or do we cap it at 0?
Comments
If you have a negative surplus it means your Technical provisions + SCR < 0. This will probably trigger regulatory action similar to how going below 150% on your MCT will trigger a review. So yes I think you can go negative