On Dec. 10, BEL CB published a circular on the applicable central rate.
BEL CB issued a circular, in French and Dutch, on the central rate applicable on Dec. 31, 2024 for supplementary provision for life insurance and industrial accidents.
Follows BEL CB Dec. 2022 issued circular on provision in life insurance, see #69646.
Document dated Dec. 10, 2024, received from BEL CB Dec. 11, summarized Dec. 16.
Central Rate
Method for calculating the additional provision to be set aside when the guaranteed interest rate exceeds the average interest rate over last 5 yrs of 10-yr OLOs by more than 0.1% (10 basis points) is described for life insurance in decree of Nov. 17, 1994.
The central rate is determined using the end-of-month reference rates communicated by the BEL CB for the yield on linear bonds on the secondary market.
The average value is calculated for the period from Dec. 2019 to Nov. 2024 inclusive.
Effectiveness
The central rate to be applied on Dec. 31, 2024 is 1.20%.
