Question
For a reinsurance company, should we include profit commission in technical flows into claim/benefits(given bonus to policyholders are included in benefits) or expenses(given that usual commissions are included in expenses)?
For a life insurance company, given that all future expenses should be reflected into expenses assumptions, so into Technical Provisions, so S.29.03 R0330 should include all expenses(exc. investment expenses) that incurrend to the company in reporting period, right?
EIOPA answer
1. Reinsurance companies should include commissions in expenses.
2. R0330 shall include all expenses included in Best Estimate calculation except for investment management expenses.