Q&A

Question

The Standard Formula QRTs are out of scope for our Group reporting, on the grounds that we have no Standard Formula entities within the group consolidated under Method 1 - this is consistent with the EIOPA Log instructions for the S.26.0x and S.27.01 QRT Logs in Annex III.

So, it would seem sensible that the reason provided for these S.26/27 QRTs in S.01.01.04 and SR.01.01.04 is consistent with this logic.  However, the only entries for these S.26/27 QRTs in  S.01.01.04 and SR.01.01.04 are:
[1] Reported / [2] Not reported as risk not consistent / [8] Not reported as use of PIM / [9] Not reported as use of full IM / [11] Not reported as reported at RFF or MAP level / [13] Not reported as Method 2 is used exclusively / [0] Not reported other reeason (which requires special justification).

Which of these reasons should be used for groups that are not in scope for these QRTs because they have no SF entities consolidated on Method 1?

EIOPA answer

In filling S.01.01.04 and SR.01.01.04 in case there are no Standard Formula entities within the group consolidated under Method 1 in the entries for S.26/27 QRTs depending on the type of the internal model approved (partial or full) option [8] – "Not reported as use of partial internal model" or option [9] – "Not reported as use of full internal model" is to be selected.

Option [0] – "Not reported other reason (in this case special justification is needed)" requiring additional justification is to be used in case different than the above listed.

Please be aware that insurance and reinsurance undertakings using full or partial internal models for the calculation of their Solvency Capital Requirement  may be required from the supervisory authorities under Article 112 (7) to provide an estimate of the SCR using standard formula.