When a new insurer is given permissions or enters into a new line of business it may obligate itself to incur certain costs in future periods (such as policy processing software licences). The insurers will have a contractual obligation to incur these costs regardless as to whether it has necessarily sold any policies but will only recognise an actuarial liability for this once it has actually sold policies. This means that BEL will potentially jump from nil to a relatively large amount of the sale of a single policy.

The expenses should be allocated to current and future policies according Solvency II regulation. However, in some cases there might be no current business to bear this expenses. To ensure a prudent, reliable and objective calculation as required by Article 76.4 of the Solvency II Directive, undertakings may need to adapt their assumptions to allocate future expenses during exceptional situations (e.g. start-up or starting a material new line of business or starting business in a different country than the original home country of the insurer under freedom to provide services). 
In any case, future expenses alone should never lead to the recognition of a best estimate liability, as insurance and reinsurance shall be recognised only at the date the undertaking becomes a party to the contract or the date the insurance or reinsurance cover begins, whichever date occurs earlier (Article 17 of the Delegated Regulation 2015/35). However, undertakings should pay attention to any requirement to recognise a non-insurance liability according to IFRS framework, as Solvency II follows IFRS recognition for non-insurance liabilities.