Q&A

Question

Correction of the guidance

Background of the question

The template provides information on Overall calculation of the transitional on technical provisions. The general calculation rule of the the transitional measure is as follows: [portion of the difference applied] * ([SII TP per 1.1.2016] - [SI TP per 31.12.2015]). Article 308d(4) defines that the supervisory authority may limit the transitional measure. So, instead of using ([SII TP per 1.1.2016] - [SI TP per 31.12.2015]) a transitional measure equal to ([SII TP per 1.1.2016] - [SI TP per 31.12.2015] - [limitation per 1.1.2016]). If [limitation per 1.1.2016] is equal to 0, then we get the general calculation rule. Currently C0010/R0070 has two guidance: 1) "Amount of the adjustment to the technical provisions after any limitation applied in accordance to Article 308d(4) of the Directive 2009/ 138/EC, if applicable." The title of the row is "Limitation applied in accordance to Article 308d(4)". It is clear that the adjustment can't be the same as TP after any limitation. 2) "If no limitation the amount calculated as R0060*(R0010-R0050) shall be reported." As described above, if there is no limitation, the amount should be equal to 0. --- It seems that the amendments to the guidance that have been provided after the implementation of SII have ignored the original aim of the information, that is: to provide information on the limitations.

EIOPA answer

 As Q&As and 1508 and 1544 highlight, the change was included in the 2018 ITS amendments and R0070 should include the amount of the adjustment after limitations from Article 308d(4) of the Directive 2009/ 138/EC. The name of the cell will be clarified at the next possible occasion to avoid any confusion, i.e. we will propose it still in the current amendment as it is a minor clarification.

In any case, the amount of the limitation can still be derived from the existing data. In particular, it should be equal to R0060*(R0010-R0050) - R0070.