Solvency II Art.75: Art. 75; DR Arts 263, 267 Value assets and liabilities on an economic basis, under internal control

What does Art.75 require?

Assets carry the price at which knowledgeable, willing parties would exchange them at arm's length, and liabilities the price at which such parties would transfer or settle them, with no adjustment for the undertaking's own credit standing. Undertakings must have effective systems and controls making valuations reliable, regular verification of market prices and model inputs, documented valuation policies with roles, models and sources, sufficient resources, independent review of data, assumptions and results, oversight by those who run the undertaking, external valuation of material items on request, and for alternative valuation methods: identification, justification, documented assumptions, uncertainty assessment and back-testing.