EIOPA · 1347
1347
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 251
- Submitted
- 2018-04-23
- Answered
- 2019-09-06
Question
TP(life,4) denotes the technical provisions without a risk margin for all other life insurance and reinsurance obligations, after deduction of the amounts recoverable from reinsurance contracts and special purpose vehicles, with a floor equal to zero;
Imagine following situation:Net BEL + net TP as a whole on LoB 32 = - 383 565 CZKNet BEL + net TP as a whole on LoB 34 = 313 542 CZKBoth LoB 32 and LoB 34 belong to the TP(life,4) as definec in Article 251, par. 1, letter d).
What is the correct interpretation of "with a floor equal to zero". Should it be applied to LoB all to TP(life,4)? In other words, in case of the aforementioned example is correct a or b:a) TP(life,4) = 313 542 CZKb) TP(life,4) = 0 CZK (as -383 565 + 313 542
Answer
In case the insurer has technical provisions as defined in Article 251(1)(d) of Commission Delegated Regulation (EU) 2015/35 from different business lines the floor is to be applied to the total and not per business line.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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