Solvency II Art.78-80: Arts 78 to 80 Include expenses, inflation, bonuses, options and guarantees; segment by risk group

What does Art.78-80 require?

Technical provisions must allow for all servicing expenses, expense and claims inflation, and all expected payments including future discretionary bonuses; for the value of financial guarantees and contractual options, with realistic, current assumptions on policy holder behaviour (lapses, surrenders) that reflect changing conditions; and obligations must be segmented into homogeneous risk groups, at least by line of business.