558

Question

Validation between S.17.01 and S.28.01There are validations that requires the net best estimate (including technical provisions calculated as whole), for each line of business, reported in S.17.01 should agree to the net best estimate (including technical provisions calculated as a whole) reported in S.28.01 for the respective line of business. This is contrary to the S.28.01 LOGs which requires amount reported in this form to have a floor of zero. Hence you would expect that negative best estimate amount reported in S.17.01 should be reported as zero on form S.28.0.
An example of the validation is as below:
{S.28.01, r0020,c0020}>={S.17.01, r0010,c0020}-{S.17.01, r0050,c0020}+{S.17.01, r0270,c0020}+{S.17.01, r0290,c0020}+{S.17.01, r0300,c0020}
Could you please confirm which is correct, the LOG or the validation?

European Insurance and Occupational Pensions Authority · Accepted Answer

BV458-BV489 are the validations referred to in the question.The validation is correct as it states that the amounts reported in S.28.02/S.28.02 has to be >= than the amounts reported in S.17.01.The signal >= (and not only ‘=’) covers two possible situations:-    The floor applicable on S.28.01 (0 is higher than an eventual negative amount reported in S.17)-    Risk mitigation techniques allowed for the purposes of TP calculation but not allowed for the purposes of MCR calculation
Therefore the validation is correct and in line with the Instructions of the templates.

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