Question ID: 473
Regulation Reference: Guidelines on reporting for financial stability purposes
Article: 35
Template: S.05.01
Status: Final
Date of submission: 16 Dec 2015
Question
The instructions in the Log File for S.41.01.11, in Technical Annex B, require submission of information on a quarterly basis.
The log file requires us to provide the following information:
1. Lapse/surrender rate contracts (C0010/R0010) - Number of life contracts (policies, not IFRS 4 contracts) fully or partially lapsed or surrendered during the reporting period divided by the number of life contracts at the beginning of the period.
2. Lapse/surrender rate volume (C0010/R0020) - Volume (the amount of technical provisions) of life contracts fully or partially lapsed or surrendered during the reporting period divided by the volume (the amount of technical provisions) of life contracts at the beginning of the period.
Question – The log file doesn’t define what the Reporting Period is. It seems it is the 3 months period for the quarter as its asking for the no. of life contracts lapsed / surrendered during the reporting period. One could also interpret this to be on Year To Date basis.
For example, for S.05.01. – Premiums, claims and expenses by line of business, the log file clearly states ‘The template is based on a year-to-date basis’.
Please confirm if the Reporting period for S.41.01.11 is the 3 months period representing the quarter and not Year To Date?
EIOPA answer
In order to be in line with other Solvency II reporting (such as reporting on premiums, claims and expenses), lapses should be reported on a year to date basis in template S.41.01.11.”