Question ID: 2125
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Topic: Solvency Capital Requirement (SCR)
Article: 116(3)
Status: Final
Date of submission: 26 Mar 2020
Question
We have noticed different treatment of insurance premium tax related to volume measure for premium risk. In some instances/countries the tax is included in the total premium amount and consequently in the volume measure, while in other it is not.
Background of the question
Observed different practices across Europe.
EIOPA answer
Following article 35 of the Directive 91/674/EEC (reference to be found in the EIOPA QRT LOG file on page 456) stating that "The above amounts [incl. gross written premiums] shall not include the amounts of taxes or charges levied with premiums.", we confirm the proposed answer is correct: the insurance premium tax (IPT) is excluded from the volume measure of premium risk.