Question ID: 1702
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.29.03
Status: Final
Date of submission: 27 Nov 2018
Question
The new interpretation of S.29.03 R0300 from Explanatory Notes on Variation Analysis Template is that "In S.29.03.R0300 the net impact of the amount of the assets held by index-linked and unit-linked business and of technical provisions – index-linked and unit-linked (calculated as best estimate and risk margin or calculated as a whole), including the technical flows, should be reported for information." We also have a Case 7 to support the understanding.
However, we don't see why R0300 needs to include technical flows. We understand that R0360 needs to include technical flows instead. Also from Case 7 in hte Explanatory note, the value under R0300 is 3, which is the net amount of UL asset variation (120) and TP-UL variation (117). If this needs to include one extra item of technical flows which is another 100, then the amount would be 103. Could you confirm our understanding?
EIOPA answer
EIOPA believes that the reference to technical flows is correct both in para 1.41 and reflected in Case 7.
R0300 is intended to reflect the net impact of the assets covering unit/index-linked Business and the technical provisions for unit/index linked Business. In case 7, the Variation of those assets covering unit/index-linked Business amounts to 120, whereas the Variation of the technical provisions of unit/index linked Business amounts to 117. Both variations include the technical flow of 100, which is also reflected in R0340 of the template S.29.03. The resulting 3 (120- 117) reported in R0300 includes also the technical flows.EIOPA believes that the reference to technical flows is correct both in para 1.41 and reflected in Case 7.
R0300 is intended to reflect the net impact of the assets covering unit/index-linked Business and the technical provisions for unit/index linked Business. In case 7, the Variation of those assets covering unit/index-linked Business amounts to 120, whereas the Variation of the technical provisions of unit/index linked Business amounts to 117. Both variations include the technical flow of 100, which is also reflected in R0340 of the template S.29.03. The resulting 3 (120- 117) reported in R0300 includes also the technical flows.