Q&A

Question

Regarding validations BV773 and BV775 (the total of expenses reported on template S.05.01 must be positive), in a specific case where reinsurers' share would amount to a higher number than gross expenses, the net expenses would be negative (and likely be considered as income). Is this a possible case figure on template? Are there reporting requirements to consider?

EIOPA answer

EIOPA confirms. While in general we expect the net expenses to be positive, we are aware that there exists examples where this will not be the case. Therefore the validation was put as non-blocking.