Question ID: 1703
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.19.01
Status: Final
Date of submission: 04 Dec 2018
Question
Best Estimate of IBNR annuities is calculated using non-life techniques and RBNP of annuities is calculated using life techniques. Should historical amounts of BE annuity claims provision be moved out from S.19.01 when the annuity reserve starts to be evaluated using life techniques?
Whether all historical diagonals or alternatively only the diagonal before the last one should be updated due to movement mentioned above (“All or part of an obligation moves …”)? Or once reported amounts of Best Estimate reserves could not be changed? Which of these approaches should be used?
EIOPA answer
EIOPA confirms that the historical data are required for claims paid and RBNS claims but not for Best Estimate of Claims Provision.
Furthermore, EIOPA expected that if all or part of the obligation has been formally settled as an annuity and its BE is formally settled as an annuity using life techniques. In the case described, the annuity reserve has to be moved to S.16.01.
Finally, it should be also noted that the sum of provision in templates S.16.01 and S.19.01 for non-life line of business has to be the total claims reserves originating from the same line of business.