Question ID: 1181
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 192, 42
Status: Final
Date of submission: 03 Aug 2018
Question
Article 192 (2) defines "Recoverables" as
"best estimate of amounts recoverable from the reinsurance arrangement or insurance securitisation and the corresponding debtors".
Are "Recoverables" adjusted to take account of expected losses due to default of a counterparty (as defined by Article 42 of Delegated Regulation) or not?
EIOPA answer
The term Recoverables referred to in Art. 192 (2) of Delegated Regulation (EU) 2015/35 should be the best estimate of amounts recoverable from the reinsurance arrangement or insurance securitisation and the corresponding debtors taking into account the counterparty default adjustment referred to in Art. 81 of Directive 2009/138/EC and Art. 42 of Delegated Regulation (EU) 2015/35.