EIOPA · 993
993
- Regulation
- (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
- Article
- 35
- Submitted
- 2017-09-17
- Answered
- 2019-10-08
Question
EIOPA has clarified that Claims paid (gross, ceded, net) triangles can have negative values however, it has not been clarified if negative values are allowed in Best Estimate (gross, ceded, net) and RBNS (gross, ceded, net) triangles as well?
Can you please confirm it as there could be instances where non-cumulative amounts would be negative (e.g. due downward revisions in Best Estimates and RBNS). If in such cases, the non-cumulative amounts of Best Estimates and RBNS have to be reported as positive then, the profile of Best Estimate and RBNS would show a different picture and accordingly, the sum of discounted values of Best Estimate ("C0360/R0260", "C0960/R0460" and "C1560/R0660") could be different from that reported in S.17.01 if S.17.01 has allowed for negative values.
Answer
Negative values are also allowed for Best Estimate and RBNS triangles.
S.19.01 say that the best estimate claim provision amounts and the RBNS amounts are ‘absolute amounts’. This means that S.19.01.01 requires the reporting of the claim provision and RBNS amounts as at the end of each year of their development.Therefore Downwards or upwards revisions in claims provision and RBNS’ (as referred to in the question) are not reported explicitly in S.19.01.
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.
Similar Q&As
📋 Track EU financial regulation continuously
Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.
14-day free trial. No credit card required.