EIOPA · 1909
1909
- Regulation
- (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
- Article
- 35
- Submitted
- 2019-07-08
- Answered
- 2019-10-15
Question
We are not sure what is expected for BV897:The difference between gross and net BSCR is lower than Future Discretionary Benefits and the Loss absorbency capacity of technical provisions does not equal the difference between gross and net BSCR.
We have a R140 Loss absorbing capacity of technical provisions = 0. We also report R460 as a positive number and the difference in Basic SCR (R100) is a negative number. There are two possibl ways to overcome the warning:1. values in C0030=C0040 or2. R140= negative number of Gross SCR (C0030)- Net SCR (C0030)
What is here expected?
Answer
EIOPA expects that the item "Loss-absorbing capacity of technical provisions" reported in S.25.01 - Solvency Capital Requirement - for undertakings on Standard Formula is equal to the minimum between the difference of the gross and net SCR and between the "Net future discretionary benefits". If this minimum is less than zero, the loss-absorbing capacity of the technical provisions should be zero.
Therefore, the validation as it currently stands is incorrect. It will be deactivated and corrected in the next release 2.4.0.
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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