Question ID: 2587
Regulation Reference: (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision
Topic: Reporting Templates
Article: Article 6(1)(h) of Directive 2013/34/EEC
Template: S.05.01
Status: Final
Date of submission: 27 Feb 2023
Question
Referring to the answer of the question ID 2405. Which accounting regulations is the answer for? For IFRS 17 this is correct, however the answer doesn't align with IFRS 4. In IFRS 4 commissions shall be reported as Expenses, not Claims incurred.
Background of the question
Answer for question 2405: Reinsurance profit commissions depends on claims experience and therefore should be reported in row R0340 – Claims incurred – Reinsurer's share of template S.05.01.
EIOPA answer
Q&A 2405 will be revised. S.05.01 should be filled in according to the accounting principles used in the financial statements. However, it should be noted that under the principle of substance over form (see Article 6(1)(h) form the Directive 2013/34/EEC), “items in the profit and loss account and balance sheet shall be accounted for and presented having regard to the substance of the transaction or arrangement concerned". Therefore, reinsurance contracts where large amounts are transferred back to the insurer as reinsurance commissions or profit participation should be reported according to their economic nature, e.g. as claims corrections.