Article 23 Future management actions

1.

(a)

the assumptions on future management actions are determined in an objective manner;

(b)

assumed future management actions are consistent with the insurance or reinsurance undertaking's current business practice and business strategy, including the use of risk-mitigation techniques; where there is sufficient evidence that the undertaking will change its practices or strategy, the assumed future management actions are consistent with the changed practices or strategy;

(c)

assumed future management actions are consistent with each other;

(d)

assumed future management actions are not contrary to any obligations towards policy holders and beneficiaries or to legal requirements applicable to the undertaking;

(e)

assumed future management actions take account of any public indications by the insurance or reinsurance undertaking as to the actions that it would expect to take or not take.

2.

(i)

a comparison of assumed future management actions with management actions taken previously by the insurance or reinsurance undertaking;

(ii)

a comparison of future management actions taken into account in the current and in the past calculations of the best estimate;

(iii)

an assessment of the impact of changes in the assumptions on future management actions on the value of the technical provisions.

3.

(a)

the identification of future management actions that are relevant to the valuation of the technical provisions;

(b)

the identification of the specific circumstances in which the insurance or reinsurance undertaking would reasonably expect to carry out each respective future management action referred to in point (a);

(c)

the identification of the specific circumstances in which the insurance or reinsurance undertaking may not be able to carry out each respective future management action referred to in point (a), and a description of how those circumstances are considered in the calculation of technical provisions;

(d)

the order in which future management actions referred to in point (a) would be carried out and the governance requirements applicable to those future management actions;

(e)

a description of any on-going work required to ensure that the insurance or reinsurance undertaking is in a position to carry out each respective future management action referred to in point (a);

(f)

a description of how the future management actions referred to in point (a) have been reflected in the calculation of the best estimate;

(g)

a description of the applicable internal reporting procedures that cover the future management actions referred to in point (a) included in the calculation of the best estimate;

4.

5.