Question ID: 878
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 20 Jul 2017
Question
XYZ has an annually renewable group term life business, underwriting profit will shared with Employer based on last year's result. Would you suggest this annual renewable group TL business as "other life insurance" or "insurance with profit participation"?
XYZ has private health insurance in Germany and profit is distributed to policyholders each year. Will this business be "insurance with profit participation" or "other life insurance"?
EIOPA answer
Considering the information provided the contracts seem to be group contracts for term life insurance that companies have contracted for their employees and where the company participates on the performance/profit or loss of the insurance undertaking. Where these contracts provide for future discretionary benefits (according to Article 1 (35) of the Delegated Regulation) they should be attributed to "insurance with profit participation", LoB 30. In case of doubts please contact your NCA.
With respect to the health insurance, we note that health insurance obligations according to Article 1 (3) of the Delegated Regulation where the underlying business is pursued on a similar technical basis to that of life insurance are reflected in line of business (29) Health insurance.