Question ID: 2845
Regulation Reference: (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision
Topic: Reporting Templates
Template: S.14.01
Status: Final
Date of submission: 27 Oct 2023
Question
- C0054: How should joint life insurance contracts with two insured persons be considered? Does the counting of policyholders imply that these contracts are counted as one?
- C0260: How is the average interest rate over the remaining lifetime of a contract defined for certain products, e.g. an index-linked pension product which provides a guarantee only during the pension term in form of a guaranteed annuity factor? Could you provide examples for the calculation of the guaranteed yearly interest rate for different kinds of products?"
EIOPA answer
Regarding C0054, the number of insured persons, rather than the number of contracts or policyholders, should be reported. Accordingly, a joint-life insurance contract covering two insured persons should be reported as one contract in C0040 and as two insured persons in C0054.
Regarding C0260, the average guaranteed yearly interest rate should be reported over the remaining period for which the guarantee applies. Where the contract does not specify an explicit yearly interest rate but provides an implicit financial guarantee, the corresponding implied yearly guaranteed rate should be reported.
For example, where a pension product provides a guaranteed annuity factor, the implied yearly interest rate underlying the guaranteed annuity benefit should be determined consistently with the contractual guarantee and the relevant actuarial assumptions.
Please also refer to Q&A 2961 for an example illustrating the difference between C0260 and C0261.