Q&A

Question

There is 1 treaty, life business, with inception date 01/01/1996. The parties agree to terminate the treaty with effective date 31/12/2017. The treaty is subject to the Run-off termination clause so the existing policies shall remain in force subject to the term and conditions of the treaty until their natural extinction (after 31/12/2017). Should be reported the treaty in the EIOPA transmission End Year 2017 (treaties which period of validity overlaps 2018)? Because, although any new business will be not covered under the treaty, the reinsurer remains liable for the existing policies. Is this considered as an underwriting risk transfer?

If yes, the same question also in the non-life business. There is 1 treaty, non-life business, with inception date 01/01/2017 and expiry date 31/12/2017 working with the risk attaching clause. The treaty covers also policies inception date in December 2017 still alive in 2018. Should be reported the treaty in the EIOPA transmission End Year 2017 (treaties which period of validity overlaps 2018)?

EIOPA answer

We confirm that both treaties in your example  for which the existing policies are still in force subject to the term and conditions of the treaty until their natural extinction should be reported in S.30.03.