Q&A

Question

The log of the template S.30.01.01 specifies that "There shall be one separate template for each LoB. For each LoB, a selection must be made of the 10 most important risks in terms of reinsured exposure (part of sum insured transferred to all reinsurers) on a facultative basis. " and in the template there is a column libel as "Sum reinsured on a facultative basis, with all reinsurers", but this column display the amount on a 100% basis (the maximum liability).

In case of a facultative cover where only 50% of the cover has been accepted by reinsurer, which amount (the part of sum insured transferred to all reinsurers) should be used to defined which facultative cover to display on the template :



a-The amount on a 100% basis (the maximum liability)



b-The amount on the 50% basis (the effective liability)



Depending of the answer the facultative covers selected may not be the same; it’s why I would like to have your input on this.

EIOPA answer

The selection criteria should reflect the effective risk transfer.

S.30.01 and S.30.02 focus at the 10 most important risks in terms of reinsured exposure. In practice in almost every case this is 100% of the facultative cover represented by the total of 100% (sum of the individual placements for that specific cover) mentioned in S.30.02.C0100.

Therefore that selection criteria should S.30.01.C0160 multiplied by the total % reported in S.30.02.C0100.