EIOPA · 1493
1493
- Regulation
- (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
- Article
- 35
- Submitted
- 2018-04-20
- Answered
- 2019-10-09
Question
R0220 new specification from Q&A 1261, R0220 also requires a "BE of products with a surrender option" for Accepted Reinsurance business. Which condition is considered as surrender under Accepted Reinsurance?
I could image it could be a cancellation of reinsurace from the cedant. Generally this is allowed for all kinds of this business. Then should we put all BE of this line of business under R0220?
Answer
An example of "Accepted reinsurance" contract with surrender option is a saving contract with surrender option accepted via a quota share agreement. If the policyholder lapses the original contract, the reinsurer is forced to pay the quota accepted via reinsurance.
If this is the case then the total amount of the best estimate of that contract should be identified in R0220. Please note that while the amendment is not implemented in S.12.01.01 R0220 ("BE of products with a surrender option") according to Q&A 1261 the total value (C0150) should consider also amount related to "Accepted reinsurance" business even if the specific column cannot be filled in.
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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