Question ID: 885
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 14 Dec 2016
Question
C0210 "annualised guaranteed rate", for products like the German health insurance with an actuarial interest rate that may change over the lifetime of contracts. PVbenefits exceeds PVpremiums, both discounted using old actuarial interest rate, are compared each year. If the former is bigger than latter, then actuarial interest rate could be updated together with future premiums. Otherwise, both actuarial interest rate and future premiums could not be changed. Does this product has an annualised guarantee rate? If yes, which value to fill into C0210 as it could change over the lifetime of contracts?
EIOPA answer
We understand that the typical German health insurance contract includes an actuarial interest rate on the basis of which the premiums are calculated. This rate can be updated based on predetermined triggers, the premiums are then changed accordingly. We consider that this actuarial rate does not constitute a guaranteed rate to the policy holder in the context of what is asked for in the template (referring to the specification as given in the Log file) as we understand that this rate is not guaranteed in the contract. In case of doubts please contact your NCA.