Question ID: 881
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.05.01
Status: Final
Date of submission: 14 Dec 2016
Question
1. S.14 log file explains C0070 "claim paid" as "Total amount of gross claims paid during the year, including claims management expenses".
S.05.01 log file explains "Claims incurred Gross – Direct business" as "Claims incurred in the reporting period as defined in directive 91/674/EEC where applicable: the claims incurred means the sum of the claims paid and the change in the provision for claims during the financial year related to insurance contracts arising from direct business. This shall exclude claims management expenses and the movement in provisions in claims management expenses."
So could we expect S.05.01 (claims paid in S.14.01 = claims incurred in S.05.01 - change in the provision for claims + claims management expenses)?
2. Another question is under claims paid in both S.05.01 and S.14.01, would you expect to see paid terminal bonus though it was reserved under provision for premium refunds (RfB)?
EIOPA answer
Template S.05.01 should be filled in according to local GAAP or IFRS, if applicable, while S.14.01 should be filled in from a pure Solvency II perspective.
It is not the intention to establish a relation between S.05 and S.14 as the information reported is linked to different sources. That means that the information in S.05.01 should be reported from an accounting perspective, which in respect to "claims incurred gross" means that the information to be reported follows (not necessarily replicates) the definition of the Directive 91/674/EEC but excludes claims management expenses and the movement in provisions in claims management expenses as defined in Annex II of Regulation (EU) 2015/2450. The information in S.14.01. should follow the relevant instructions in Annex II as well.
Please refer also to Q&A 571.
Regarding the treatment of the paid terminal bonus please contact the relevant supervisory authority.