Activity by country - location of risk and premiums, claims and expenses by line of business: a total must equal the sum of its parts (S.04.05, S.05.01, EIOPA rule BV2138)

The rule in plain words

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

1. 01Open the tables below and find the cells the rule reads.
2. 02Add up the parts in your return and compare the result with the total.
3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
4. 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
5. 05It runs only when your filing indicators mark S.04.05 and S.05.01 as reported.
6. 06This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.

The cells it reads

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 ECB solo (AES) and annual solo (ARS) returns, as a warning.

EIOPA’s own words and formula

In EIOPA’s list of validations, word for word:

Expenses incurred for “Credit and suretyship insurance" reported in template S.04.05.01.01 - Total underwriting entity activity should be equal to the S.05.01 - Expenses incurred (gross) by line of business for "Credit and suretyship insurance".

Other rules on Activity by country - location of risk (S.04.05)

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.