Solvency II Art.132: Art. 132; DR Arts 260(1)(c), 275a Invest all assets under the prudent person principle

What does Art.132 require?

Undertakings may invest only in assets and instruments whose risks they can properly identify, measure, monitor, manage, control, report and reflect in their overall solvency needs, and must invest the whole portfolio for security, quality, liquidity and profitability, holding assets where they remain available. Assets covering technical provisions must suit the nature and duration of liabilities and be invested in policy holders' best interest, including under conflicts of interest. Unit-linked provisions must be matched as closely as possible to the linked units or assets. Derivatives only to reduce risk or for efficient portfolio management; unlisted assets at prudent levels; proper diversification and no excessive concentration. The Delegated Regulation requires the investment policy to address these points and sustainability risks and the long-term impact of investment decisions on sustainability factors.