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Question

From Eiopa Q&A, #751, one gets the idea that Claims Incurred to be reported in S.21.01 should reflect the RBNS at year end plus claims paid during the reporting year. However this can lead to negative entries in the template.
Especially for claims arising from earlier accident years, there can be large subrogations during the reporting year, exceeding the RBNS. Since there are no negative intervals in the template, these claims cannot be reported. Are they then to be excluded from the report?

European Insurance and Occupational Pensions Authority · Accepted Answer

The instructions to this template have been amended and now clarify that the loss distribution profile non–life shows the distribution, in (predefined) brackets, of the accumulated incurred claims at the end of the reporting year (where the amount of an incurred claim to be allocated to a bracket is defined as cumulative claims paid to the reporting date plus the reported but not settled (RBNS) amount at the reporting date).
Technically the template allows reporting of negative amounts.  However, considering that template now reflects accumulated amounts, this should be less probable.

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