EIOPA · 153
153
- Regulation
- Guidelines on submission of information to NCAs (Preparatory phase)
- Article
- 35
- Submitted
- 2015-02-02
- Answered
- 2019-10-31
Question
S.02.01 cell A21 ‘Insurance & Intermediaries’In the Errata on the Preparatory Phase the Log files of this cell changes from ‘Amounts due for payment by policyholders…’ to ‘Amounts past-due for payment by policyholders …’. Does this mean that the definition of the cell changes to ‘amounts past-due’ only? Where should the ‘amounts due’ be filled in? What is meant by ‘Past-due’ in the LOG-file description?
Answer
The interpretation is correct. According to Solvency II rules the “amounts due” are considered in the calculation of the best estimate of technical provisions. “Past-due” means when the due date of payment is passed (premiums which are duefor payment by the valuation date). Please see also Guideline 68 of the “Final Report on Public Consultation No. 14/036 on Guidelines on valuation of technical provisions”, copied below for convenience.
Guideline 68 – future premium cash-flows versus premium receivable1.122.Insurance and reinsurance undertakings should establish the future premium cash-flows contained within the contract boundaries at the valuation date and include within the calculation of its best estimate liabilities those future premium cash-flows which fall due after the valuation date.1.123.Insurance and reinsurance undertakings should treat premiums which are due for payment by the valuation date as a premium receivable on its balance sheet until the cash is received.
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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