Question ID: 919
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 11 Jan 2017
Question
We understand that investment returns are excluded from cash flows. How about investment expenses? Should that be excluded too or included in “future expenses“?
EIOPA answer
Investment expenses that relate to the obligations reported should be included in "future expenses". This is because the cash-flows "future benefits" include the part of the investment return that is allocated to policyholders.
In that sense, it is not totally true to say that "investment returns are excluded from cash-flows" because the part that is distributed to policyholders should be reported.