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European Insurance and Occupational Pensions Authority
 

2638

Q&A

Question ID: 2638

Regulation Reference: (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision

Topic: Reporting Templates

Template: S.14.03

Status: Final

Date of submission: 16 May 2023

Question

We would like to ask for some clarifications about the compilation of the new QRT S.14.03 on cyber underwriting risk that will be introduced by the Taxonomy 2.8.0. The new QRT will require to distinguish the “Product Identification” (C0030) (i.e. first party loss, third party loss and related costs and services) and report for each type of product the “Sum(s) Insured” (C0080). Our doubt is relative to the case where the contract includes: (i) multiple guarantees (i.e. first party loss, third party loss and related costs and services) under a single policy, with each guarantee associated with a maximum coverage limit, and (ii) an overall coverage limit that is lower than the sum of the individual limits associated with each guarantee. In this situation the overall exposure of the company to cyber underwriting risk cannot be calculated as the sum of the “Sum(s) Insured” (C0080) for each “Product Identification” (C0030), as the it would return an outstanding amount substantially higher than the real exposure. This would result in a reporting that is not fit for supervisory purposes. In this regard, we would like to ask if you can please provide more information on how to report the “Sum(s) Insured” (C0080) for contracts that include multiple guarantees and an overall coverage limit. 

EIOPA answer

The granularity is not per contract but per product or group of products. If for the product multiple guarantees (i.e. first party loss, third party loss and related costs and services) are covered either the overall coverage should be considered, if existing, if not should be the sum.  Each line should reflect the sum of the sum insured for all the contracts/policies sold regarding the cyber product. 

If there is an overall coverage, that amount is the one to be considered. The amount to be reported would be the sum of the overall amount for all contracts/policies sold regarding the cyber product.