Question ID: 2707
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: 19 Jun 2023
Question
Regards the new Cyber risk template (S.14.03) in 2.8 taxonomy, and the associate LOG guidance (in the draft business package supporting SII taxonomy 2.8.0). Would the following be an acceptable implementation for checking of C0120 (e.g. in Plausibility tests): C0080 and C0090 and C0140<>0 On the basis that it would normally be expected (given the nature of the materiality threshold) that premiums are being earned and exposures are present for every product included in the template. i.e. a consequence of this is the products that are no longer commercialised and for which no exposures remain are not required to be included in S.14.03 (but otherwise they should).
EIOPA answer
Having earned premiums and 0 TPs in theory is possible, but in practice very unlikely. The main case would be the last year before stop selling a product and assuming the run-off period is short enough to fully settle the obligations within the year.
Based on the LOG (presented below), it is correct to assume that Sum insured, Premiums Earned and Technical Provisions would be non-zero amount. Regarding the non-commercialised products, with no remaining exposure it would not be possible for such product to exceed the threshold and non-commercialised products, even if aggregated to single line with commercialise ones, should not affect calculation.
LOG:
The template shall be subject to the application of a threshold based on the following:
- The sum of premiums earned for standalone cyber policies and policies with cyber as add-on coverage (where only the (estimated) premiums earned for cyber risk should be taken into account) is greater than 5% of the overall non-life business pursued by the undertaking or greater than 5 million €
OR
- Number of policies that include cyber coverage (i.e. standalone cyber and/or cyber ad add-on policy) represent more than 3% of the total number of policies of the non-life business).