EIOPA · 1681
1681
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 127
- Submitted
- 2018-10-05
- Answered
- 2019-09-12
Question
Article 127 contains the catastrophe risk charge calculations for non-proportional property reinsurance wherein geographical diversification ("DIV") has been set out in Annex III. However point (5) of Annex III states that the factor for geographical diversification shall be equal to 1 (i.e. DIV =1) including for segment "12 Non-proportional property reinsurance". Please refer to worksheet "Query1".
Can you please clarify whether this is the intention of this Article 127 "Sub-module for catastrophe risk of non-proportional property reinsurance"?
Answer
In accordance with Annex III paragraph 5 and Annex II of Commission Delegated Regulation (EU) 2015/35 the factor DIVnpproperty referred to in Article 127(2) should be set to one.
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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