Skip to main content
European Insurance and Occupational Pensions Authority

43

Q&A

Question ID: 43

Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)

Article: 35

Template: S.26.04

Status: Final

Date of submission: 06 Mar 2014

Question

Template S.26.04
The formula for the ‘Total Capital Requirement for health underwriting risk (diversification)’ (cell A26 and B26) consists of both cell D10 and cell A17 in the LOG files. This seems contradictory with the Hierarchy in the Data Point Model, where A17 is not included in A26/B26, rather; cell A17 is already included in cell D20. Could we eliminate cell A17 from the formula in cell A26/B26? Summarizing, could we assume that the formula for B26 should be: “B26=SUM(C10,D20,B25) -B27” and A26: “A26=SUM(D10, D20, A25) - A27” and that a formula for D20 should be included as follows “D20=A17+D18+D19”?’

EIOPA answer

The formulas of A26 and B26 were in fact incorrect. 
In the description of the cell A26 and B26 of S.26.04 a correction of reference in the formula is needed in order to eliminate the double counting of the NSLT health premium and reserve risk and make the diversification effect calculation consistent within the template and between different templates (i.e. diversification effects reported as a negative value). These was amended through the ERRATA published at EIOPA website (paragraphs 64 and 65 of the ERRATA). 

The correct formulas are:
Description of cell A26: “… A26= A27 – SUM (D10,D20,A25)
Description of cell B26: “…B26= B27 - SUM(C10, D20,B25)