General provisions on the establishment of technical provisions

(1) Technical provisions must be established in the solvency balance sheet for all insurance obligations towards policyholders and beneficiaries. These must be calculated in a prudent, reliable, and objective manner.
(2) The value of the technical provisions corresponds to the current amount insurance undertakings would have to pay if they were to transfer their insurance obligations immediately to another insurance undertaking.
(3) In calculating the technical provisions, insurance undertakings segment their insurance obligations into homogeneous risk groups, separated at least by lines of business.
(4) The calculation of the technical provisions takes into account the information provided by the financial markets and generally available data on underwriting risks and must be consistent with them (market consistency).
(5) The principles named in section 74(3) must be observed in calculating the technical provisions.