When reviewing the Non-life catastrophe risk QRT (27.01.b) - Man Made Cat risk (Liability) we faced the following question:
QRT Template 27.01.b. (Man made catastrophe risk – Liability) asks for “Earned premium last 12 months” (KA1, KB1, KC1, KD1, KE1, KF1) information.
Within the „Technical Specification for the Preparatory Phase (Part I)” [SCR.9.124] document (EIOPA-14/209 – 30 April 2014) P(liability,i) is defined as “Premiums earned by the insurance or reinsurance undertaking during the
following 12 months in relation to insurance and reinsurance obligations in liability risk group i; for this purpose premiums shall be gross, without deduction of premiums for reinsurance contracts”.
Can you please confirm that the current provided QRT asking for the “last 12 month” is correct and we do not have to provide the information for the “following 12 months” as defined in the document.
This answer is also relevant for the future Solvency II (not only prep. phase).
The calculation of the Man-made catastrophe risk should have followed the Technical Specifications for the preparatory phase and should follow the relevant regulations in Solvency II, e.g. Delegated Regulation 2015/35.
The situation described was a mistake in the Instructions of the template and has been amended in the Final Report of the ITS and reflected in the draft ITS submitted to the COM.