diversification effects

Defined in Article 13, Solvency II Directive

Definitions over time (2)

1. 30/06/2021 – today applies on 12/11/2026 Article 13, Solvency II Directive Scope: Whole act

   For the purposes of this Directive, the following definitions shall apply:

   ‘diversification effects’ means the reduction in the risk exposure of insurance and reinsurance undertakings and groups related to the diversification of their business, resulting from the fact that the adverse outcome from one risk can be offset by a more favourable outcome from another risk, where those risks are not fully correlated;

2. 09/12/2011 – 12/01/2017 Article 13, Solvency II Directive Scope: Whole act

   For the purposes of this Directive, the following definitions shall apply:

   ‘diversification effects’ means the reduction in the risk exposure of insurance and reinsurance undertakings and groups related to the diversification of their business, resulting from the fact that the adverse outcome from one risk can be offset by a more favourable outcome from another risk, where those risks are not fully correlated;

Used in (8 places in 7 provisions on 12/11/2026)

Solvency II Directive (8 in 7)

Recital 56 · Recital 64 · Recital 141 · Article 13 · Article 104 · Article 121² · Article 304