The rule in plain words
The "Total business underwritten by all underwriting entities in the country where they are established" in S.04.05.01.01 is the sum of all countries "Business underwritten in the considered country, by all underwriting entities established in this country" in S.04.05.01.02
The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.
What to do if your return fails it
- 01Open the tables below and find the cells the rule reads.
- 02Add up the parts in your return and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark S.04.05 as reported.
- 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Activity by country - location of risk: total underwriting entity activity (S.04.05.01.01)
Rows
- R0020Premiums written (gross)
- R0030Premiums earned (gross)
- R0040Claims incurred (gross)
- R0050Expenses incurred (gross)
Column
- C0010Total of business written by the underwriting entity
Activity by country - location of risk (S.04.05.01.02)
Rows
- R0020Premiums written (gross)
- R0030Premiums earned (gross)
- R0040Claims incurred (gross)
- R0050Expenses incurred (gross)
Column
- C0020Total by country
Which returns it applies to
Line4 Check runs it on annual solo (ARS) return on EIOPA taxonomy 2.10.0. EIOPA applies it to annual solo (ARS) and annual ECB solo (AES) returns, as a blocking check.
EIOPA’s own words and formula
The plain words above are EIOPA’s own, word for word, from its list of validations.
Show the formulaShowHide
EIOPA's formula. Cells are written as {t: table, r: row, c: column}.
{t: S.04.05.01.01, c: C0010, z: Z0001} = sum({t: S.04.05.01.02, c: C0020, z: Z0001})Other rules on Activity by country - location of risk (S.04.05)
- Location of the branch = 'Other countries' should be less than 5% of total gross written premiums reported for S.04.05 (BV2085)
- Premiums earned (gross) reported in S.04.05 should be equal to Premiums earned (gross), by line of business reported in S.05.01 (BV2086)
- Activity by country - location of risk and premiums, claims and expenses by line of business: a total must equal the sum of its parts (BV2087)
- Activity by country - location of risk and premiums, claims and expenses by line of business: a total must equal the sum of its parts (BV2088)
- Activity by country - location of risk and premiums, claims and expenses by line of business: a total must equal the sum of its parts (BV2089)
- Activity by country - location of risk and premiums, claims and expenses by line of business: a total must equal the sum of its parts (BV2090)
- Activity by country - location of risk and premiums, claims and expenses by line of business: a total must equal the sum of its parts (BV2091)
- Activity by country - location of risk and premiums, claims and expenses by line of business: a total must equal the sum of its parts (BV2092)
Every Solvency II rule on S.04.05
Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.