Question ID: 1198
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 61
Status: Final
Date of submission: 21 Jul 2017
Question
What should be filled in C0090 when company calculates adjustment for expected losses due to default of the counterparty according to simplification defined in Article 61 of Delegated Regulation?
Following the simplification, adjustment is calculated as one number lowering reinsurance recoverables and therefore, even a projection of unadjusted amounts recoverable from reinsurance contracts is available, projection of adjusted amounts recoverable is not available.
EIOPA answer
We confirm that when conditions from aforementioned text are satisfied, the adjustment in relation to undiscounted future cash flows should be estimated despite the fact adjustment is calculated as single value. This is expected to be done on a best effort-basis and based on estimations.