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European Insurance and Occupational Pensions Authority
 

2849

Q&A

Question ID: 2849

Regulation Reference: Guidelines on financial stability reporting

Topic: Reporting Templates

Template: S.14.05

Status: Final

Date of submission: 31 Oct 2023

Question

There are two questions regarding this template: 

1. Cell C0190 is named "Cashed Premium - gross", but the description states "The gross cashed premiums represent the sum of the direct business and the accepted insurance business reduced by the amount ceded to reinsurance undertakings...", which would lead to net amounts instead of gross amounts. Could you please clarify if net or gross is meant here? 

2. Cell C0310 "Unearned premium" is described with "Total amount of payment to date related to early termination of the contract." What is meant by the term "early termination"? The German translation does not help here as well. Is it just the common meaning of unearned premiums at the reporting date according to the following definition: "An unearned premium is the premium amount that corresponds to the time period remaining on an insurance policy. In other words, it is the portion of the policy premium that has not yet been "earned" by the insurance company because the policy still has some time before it expires."

EIOPA answer

  1. “Cashed Premium – gross" shall be reported on a gross basis in line with the other data requested in the template. For further clarification, refer to the amended consolidated version of the Guidelines for Financial Stability Reporting (2024) and Technical Annexes (2024) available on the EIOPA website.
  2. Please note that cell C0310 "Unearned premium" has been renamed as “Unearned premium returned upon termination (year to date)" and the instructions has been revised as follows: “Total amount of the premium returned for unused coverage (cash outflow to date) upon termination of the contract". These changes are included in the amended consolidated version of the Guidelines for Financial Stability Reporting (2024) and Technical Annexes (2024) available on the EIOPA website.​