1754

Validation BV834 states that “Best estimate and Risk margin should be both reported or both be empty- Other life insurance” and it compares row R0030 (Gross Best Estimate) with R0100 (Risk Margin). In cases where the Gross Best Estimate is fully reinsured a risk margin is not calculated as the gross best estimate minus recoverables in R0090 is zero. There are also cases where the best estimate minus recoverables from reinsurance are small and so a calculation of the risk margin is not performed on the grounds of materiality. We believe validation BV834 should be removed or made ‘non-blocking’ due to the circumstances described above.