EIOPA · 2813
Reporting Templates
- Regulation
- (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision
- Article
- N/A
- Topic
- Reporting Templates
- Submitted
- 2023-10-03
- Answered
- 2023-12-06
Question
Should the interest accretion which is include under the Claims incurred also include interest accretion which is caused by interest rate curve changes?
Background
Under the old IFRS 4 regime fixed interest rates where used to calculate and add interest to the technical provisions. Under IFRS 17 interest accretion is calculate using the actual interest rate curve. Since the interest accretion is included in the Claims incurred, interest rate changes could have major impact on the reported amount for Claims incurred. This will differ from insurance companies that do not use IFRS17 for reporting
Answer
Yes, the LOG requires all changes to the liability of claims incurred to be considered to report claims in S.05.01. This includes also the changes through Other Comprehensive Income (OCI) as the LOG does not recognise any exceptions.
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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