Question ID: 865
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 19 Oct 2016
Question
This question relates to the requirement to report the top 10 Facultative risks by LoB. Can you confirm the criteria to be used to identify the top 10 risks given that a savings product with the same sum assured as a protection product will carry significantly less risk? If reinsured exposure to be used is sum assured that is reinsured, as stated in response to comment 22 in the Summary of Comments on Consultation Paper 09 – EIOPA-CP-009/2011, can you advise how reinsured annuity products in the same line of business are to be treated, given that these do not carry a sum assured.
EIOPA answer
The references to "sum reinsured" should be read considering the type of insurance business. in case of annuities we should read "sum reinsured or similar". This approach will take into account the various definitions used for life-insurance products. Regarding the reinsured part of annuities it should be considered "the present value of the future cash flows that is reinsured, based on the contractual terms and conditions of the specific reinsurance contract".