Risk margin

(1) The risk margin ensures that the value of the technical provisions corresponds to the amount that insurance undertakings would require in order to be able to take over and meet the insurance obligations.
(2) The risk margin is calculated by determining the cost of providing an amount of eligible own funds. That amount must correspond to the Solvency Capital Requirement necessary to support the insurance obligations over their lifetime. Where the European Commission sets a cost-of-capital rate for providing eligible own funds under Article 86, letter d, of Directive 2009/138/EC, that rate must be used.