Financial guarantees and contractual options in insurance contracts

(1) In calculating the technical provisions, the value of the financial guarantees and other contractual options that are the subject matter of the insurance contracts must be taken into account.
(2) The assumptions regarding the probability that policyholders will exercise their contractual options, including cancellation and surrender rights, must be chosen realistically and must be based on current and credible information.
(3) The assumptions take into account, either explicitly or implicitly, the effects that future changes in financial and non-financial conditions could have on the exercise of these options.