On 1 March 2021, EIOPA launched a European wide comparative study on non-life underwriting risk in internal models.
Objectives and Priorities:
- Fair view: The Non-Life Underwriting Risk Comparative Study 2020 (NLCS 2020) aims for a fair evaluation of non-life underwriting risk within internal models at a European level and their development over a five-year time horizon.
- Risk profile decomposition: Understanding relative positioning of capital positions on different granularities is aiding an understanding of dominating factors. A technically sound framework independent of the underlying methodologies will explore the modelled risk profile and actual business development in order to identify and analyse peer group behaviour.
- Consistency: Undertakings also taking part in the comparative study on diversification must ensure a consistent submission of information as the information request has been developed jointly for both studies.
Timeline:
- 15 September 2021: Deadline for insurance undertakings to submit results to their national supervisory authority.
- 01 October 2021: Deadline for national supervisory authorities to submit to the information to EIOPA.
Participants are recommended to submit a first batch (e.g. for YE2020 for survey A and B) well before the deadline so that potential re-workings do not create unnecessary additional submissions for the other submissions.
EIOPA offers a Questions & Answers process for clarifications. Please follow the instructions in the introduction document.