Deckungsstock

Deckungsstock refers to special funds held by an insurance undertaking that must be managed separately from the undertaking’s other assets, to ensure that claims by policyholders can be covered. The Deckungsstock must amount to the cover requirement for life assurance, as well as health and accident insurance  on the technical basis of life assurance. The cover requirement is equal to the total of the technical provisions. The insurance undertakings must ensure that the cover requirement is always fully met by assets that are dedicated to the Deckungsstock. In the case of bankruptcy, the Deckungsstock forms a special fund, from which the claims of the insured persons are to be satisfied preferentially. The FMA shall appoint a trustee and a deputy for supervising the Deckungsstock. The insurance undertaking may only dispose of assets that have been dedicated to the Deckungsstock with the approval of the trustee.