Question ID: 1301
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35, 39
Template: S.05.01
Status: Final
Date of submission: 27 Sep 2017
Question
The QRT S.05.01 template is requested from an accounting perspective as for the published financial statements, outlining a technical account.
The reference is the directive 91/674/EEC where profit participation to policyholders is included in both Life and Non-Life Technical accounts (refer article 39).
Could you confirm if “profit sharing and premiums refunds”, and related change in provisions, shall or not be included within the items “Claims incurred”? (“R0310 – R0340” in Non-life template and “R1610 – R1620” in Life template). Here we are in particular interested in policyholders’ participation in investment and/or company’s result.
EIOPA answer
Template S.05.02 shall be reported from an accounting perspective, i.e.: Local GAAP or IFRS if accepted as local GAAP but using Solvency II lines of business. Therefore, by default follows the structure of the Directive 91/674/EEC. Under this Directive 'Bonuses and rebates, net of reinsurance' are shown separately from 'Claims incurred, net of reinsurance'. This means that this amount should not be considered as part of "Claims incurred” reported in S.05.01/S.05.02.
However, if the 'bonus and rebates', in accordance with article 35 of the same Directive could be considered, for life insurance, as premiums on the basis of contracts and where national legislation requires or permits their being shown under premiums, then they should be reported as negative premiums in S.05.01 and S.05.02.
Please note that not all amounts from the technical accounts are requested as it is not the aim of the template to replicate a technical account.