EIOPA · 1679
Technical Provisions (TPs)
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 35
- Topic
- Technical Provisions (TPs)
- Submitted
- 2021-08-17
- Answered
- 2021-08-17
Question
In the case of unit linked regular premium policies (which exclude future premiums and become paid-up from the valuation date), should full regular premium expenses be allowed for after this countract boundary applies, or should a "Paid Up/PUP" expense assumption be set up?
Answer
Undertakings should do a projection and allocation of expenses that considers realistic assumptions on future business, i.e. even if full expenses should be considered, they should be apportioned between existing and future business.
Where this is consistent with expense assumptions for contracts in paid-up state, paid-up expenses can be set up.
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.
Similar Q&As
More Q&As on this topic
📋 Track EU financial regulation continuously
Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.
14-day free trial. No credit card required.