A reinsurance treaty permits the reinsurer to amend the premium under the treaty, without restriction as to amount, if the loss ratio for the reinsured portfolio exceeds a particular percentage in an underwriting year. The treaty does not provide an alternative method of amending premiums. Guideline 2 provides that reinsurance undertakings should consider the right to terminate, reject, or amend premiums or benefits payable under a reinsurance contract as being unilateral when neither the policyholder nor any third party can restrict the exercise of that right. The reinsurer's right to amend the premiums, if the loss ratio exceeds the relevant percentage, is unilateral as the ability to amend is not restricted by the contract. However, the fact that the ability to amend the premiums only arises if the loss ratio exceeds the relevant percentage establishes a condition, outside the control of the reinsurer, that must be met before the reinsurer can amend the premium. Clearly, it would not be possible to determine an exact date of when (or if) the loss ratio for the policy will exceed the relevant percentage in any an underwriting year. If the reinsurer's right to amend premiums gives rise to a boundary, it is not clear when the right to exercise that right will occur. As a result, it is not possible to ascertain, with certainty, the date on which the boundary arises. Therefore on the basis of the above, we would appreciate EIOPA's views on the following: • If a reinsurer has an unrestricted right to amend the premium under a treaty but exercise of that right is dependent on an uncertain future event that is outside of the reinsurer and cedant's control, does the reinsurer have a unilateral right to amend premiums pursuant to Article 18(3)(c)?; and • If the reinsurer does have a unilateral right to amend premiums but such right is dependent on the possibility of an event occurring in the future, how should the reinsurer determine the date of the contract boundary?

 Contingent rights where the driver event is outside the control of the insurance or reinsurance undertaking should not be considered to be unilateral rights for the purposes of contract boundaries assessment unless this restriction does not have a discernible effect on the economics of the contracts as described in the last subparagraph of article 18(3) of the Commission Delegated Regulation (EU) 2015/35.  For example, in case the driver event occurs with a very high probability, this restriction might not have a discernible effect and the contingent right could be considered to be an unilateral right for the purposes of contract boundaries assessment.