Question ID: 993
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.17.01
Status: Final
Date of submission: 17 Sep 2017
Question
EIOPA has clarified that Claims paid (gross, ceded, net) triangles can have negative values however, it has not been clarified if negative values are allowed in Best Estimate (gross, ceded, net) and RBNS (gross, ceded, net) triangles as well?
Can you please confirm it as there could be instances where non-cumulative amounts would be negative (e.g. due downward revisions in Best Estimates and RBNS). If in such cases, the non-cumulative amounts of Best Estimates and RBNS have to be reported as positive then, the profile of Best Estimate and RBNS would show a different picture and accordingly, the sum of discounted values of Best Estimate ("C0360/R0260", "C0960/R0460" and "C1560/R0660") could be different from that reported in S.17.01 if S.17.01 has allowed for negative values.
EIOPA answer
Negative values are also allowed for Best Estimate and RBNS triangles.
S.19.01 say that the best estimate claim provision amounts and the RBNS amounts are ‘absolute amounts’. This means that S.19.01.01 requires the reporting of the claim provision and RBNS amounts as at the end of each year of their development.Therefore Downwards or upwards revisions in claims provision and RBNS’ (as referred to in the question) are not reported explicitly in S.19.01.