Question ID: 2206
Regulation Reference: Guidelines on reporting and public disclosure
Topic: Reporting Templates
Article: N/A
Template: S.05.01
Status: Final
Date of submission: 05 Oct 2020
Question
Becoming of the QRT S.05.01 COVER group with IFRS 17 With IFRS 17, P&L of insurance groups will change. Items such as Premiums and Claims will not exist any more. As it is stated that for this QRT, "Groups shall use the recognition and valuation basis as for the published financial statements, no new recognition or re–valuation is required ", does it mean that Groups using IFRS standards won't have to fill this QRT any more or will this QRT be adapted when IFRS 17 will be applicable ?
EIOPA answer
Insurance group will still continue to report S.05.01 regardless of the IFRSs 17. In the ongoing ITS amendments on reporting and disclosure EIOPA already provided a clarification in the instructions. Regarding the impact of IFRSs in all templates where accounting valuation is used, EIOPA would like to clarify the following:
- IFRS 17, once applicable, will be part of the IFRSs 'GAAP' to be used alongside other local GAAPs;
- IFRS 17 does not require a P&L that is similar to the Insurance Accounting Directive, meaning that there will not be 'earned' or 'written premiums' in a P&L under IFRS 17. However, IFRS users can keep reporting written premiums in S.05.01 because they will have to keep track of written premiums, as currently defined in the Insurance Accounting Directive, for the purpose of the disclosure of IFRS 17 and the calculation of MCR/SCR (where written premiums is an input of the calculation);
- The instructions refer to the accounting Directives that will continue to be in force; However S.05.01, although linked to the accounting framework, is not a profit and losses but requires to report information on premium, claims, expenses, which are relevant for monitoring the performance trend and for market wide analysis.