Reporting Templates

What exactly is the definition of location of underwriting under freedom to provide services (FPS)? and would this differ from location of risk for Non-life insurance?

With the QRT changes per 2023 QRT S.04.04 Activity by country – location of underwriting and QRT S.04.05 Activity by country – location of risk, are introduced. Q&A 102 states that country of underwriting means the country where the contract was underwritten, meaning the country of sale of the contract, which will be the country where the product is sold. This is the country of the branch if sold by the branch or country of the FPS registration (host country) if sold under FPS. Q&A 1595 further states that Article 13 (9) of SII directive defines that "host Member State' means the Member State, other than the home Member State, in which an insurance or a reinsurance undertaking has a branch or provides services; for life and non-life insurance, the Member State of the provisions of services means, respectively, the Member State of the commitment or the Member State in which the risk is situated, where that commitment or risk is covered by an insurance undertaking or a branch situated in another Member State." Therefore, the reported country should be: ◦the country in which the risk is situated (defined in article 13(13) of Directive) – in case of non-life insurance policy ◦country of the commitment (defined in article 13(14) of Directive) - in case of life insurance policy. Were article 13(13) of Directive states (13) ‘Member State in which the risk is situated’ means any of the following: (a) the Member State in which the property is situated, where the insurance relates either to buildings or to buildings and their contents, in so far as the contents are covered by the same insurance policy; (b) the Member State of registration, where the insurance relates to vehicles of any type; (c) the Member State where the policy holder took out the policy in the case of policies of a duration of four months or less covering travel or holiday risks, whatever the class concerned; (d) in all cases not explicitly covered by points (a), (b) or (c), the Member State in which either of the following is situated: (i) the habitual residence of the policy holder; or (ii) if the policy holder is a legal person, that policy holder’s establishment to which the contract relates; So for Non-life insurance the location of underwriting would be the location in which the risk is situated which would mean that for non-life insurance there is no difference between location of underwriting and location of risk in case of freedom to provide services (FPS)