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European Insurance and Occupational Pensions Authority

2475

Q&A

Question ID: 2475

Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities

Topic: Reinsurance

Article: Taxonomy 2.8.0

Template: S.30.01

Status: Final

Date of submission: 11 Aug 2022

Question

Regarding the Taxonomy 2.8.0. we need clarification on the new requirements of the following templates for Annual reporting Solo/Group: S.30.01 / S.30.02 1) the Threshold: could you please clarify if the statement "This template should only be reported if the reinsurance recoverable are higher than 10% of the Best Estimate calculated separately for life and non-life business" applies to facultative and if so, how to manage it. S.30.03 / S.30.04 2) the Threshold: could you please clarify if the statement "This template should only be reported if the reinsurance recoverable are higher than 10% of the Best Estimate calculated separately for life and non-life business." applies to Treaty and if so, how to manage it. 3) S.30.03 (C0245) Coverage of a layer covered by reinsurance: please provide an explanation on what should be reported in this position compared to what is already reported under “Maximum cover per treaty” (C0240). S.31.01 4) The new field “Currency” description makes reference to recoverables only. Could you please confirm that the information is not requested for receivables and the other information such as cash deposits, asset pledges and financial guarantee also when reported along with recoverables (and potentially in a different currency)? 5) The request mentions to identify only the ISO code of the currency. Could you please confirm that all the monetary amounts shall remain in the currency used in the financial statements, as per current situation?

EIOPA answer

Regarding the first 2 questions, the thresholds in S.30.01 – S.30.04 are the same, i.e. recoverables from all reinsurance arrangements (treaties and facultative reinsurance) should be considered to assess the thresholds. If the total recoverables for life/non-life business as reported in S.02.01 are higher than the life/non-life Best Estimate as reported in S.02.01, S.30.01 – S.30.04 should be reported for life/non-life business. Therefore, the application of the thresholds could lead to four situations:

  1. The undertaking does not have to report S.30.01 – S.30.04
  2. The undertaking has to report S.30.01 – S.30.04 only for life business
  3. The undertaking has to report S.30.01 – S.30.04 only for non-life business
  4. The undertaking has to report S.30.01 – S.30.04 both for life and non-life business

On the third question, C0245 includes the maximum cover for a particular layer/segment, while C0240 should include the maximum cover for the whole treaty, which may have more than one layer. Please note that C0030 and C0040 require information to be reported at segment/layer level.

Finally, the assumptions in questions 4 and 5 are correct. C0155 “Currency" is only relevant for recoverables and all the monetary amounts in S.31.01 are to be reported in the reporting currency, regardless of the currencies reported in C0155".