Question ID: 1909
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 08 Jul 2019
Question
We are not sure what is expected for BV897:The difference between gross and net BSCR is lower than Future Discretionary Benefits and the Loss absorbency capacity of technical provisions does not equal the difference between gross and net BSCR.
We have a R140 Loss absorbing capacity of technical provisions = 0. We also report R460 as a positive number and the difference in Basic SCR (R100) is a negative number. There are two possibl ways to overcome the warning:
1. values in C0030=C0040 or
2. R140= negative number of Gross SCR (C0030)- Net SCR (C0030)
What is here expected?
EIOPA answer
EIOPA expects that the item "Loss-absorbing capacity of technical provisions" reported in S.25.01 - Solvency Capital Requirement - for undertakings on Standard Formula is equal to the minimum between the difference of the gross and net SCR and between the "Net future discretionary benefits". If this minimum is less than zero, the loss-absorbing capacity of the technical provisions should be zero.
Therefore, the validation as it currently stands is incorrect. It will be deactivated and corrected in the next release 2.4.0.