The rule in plain words
The CDFs reported in S.26.14 should rise monotonically
What to do if your return fails it
- 01Open the tables below and find the cells the rule reads.
- 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
- 03It runs only when your filing indicators mark S.01.02 and S.26.14 as reported.
- 04This 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
Basic information (S.01.02.01.01)
Row
- R0130Method of Calculation of the SCR
Column
- C0010Report information
Internal model - non-life and health NSLT underwriting risk: non-life and health NSLT underwriting risk - reserve risk model data - aggregate (S.26.13.01.03)
Rows
- R05300,9
- R05400,975
Column
- C0070Diversified reserve risk excluding explicit Catastrophe Risk
Internal model - life and health underwriting risk: life and health underwriting risk - life SCR and percentiles (S.26.14.01.01)
Rows
- R0010Mortality risk aggregate
- R0020trend
- R0030level
- R0040volatility
- R0050catastrophe
- R0060Longevity risk aggregate
- R0070trend
- R0080level
- R0090volatility
- R0100catastrophe
- R0110Disability-morbidity risk aggregate
- R0120trend
- R0130level
- R0140volatility
- R0150catastrophe
- R0160Lapse risk aggregate
- R0170risk of increase in lapse rates
- R0180risk of decrease in lapse rates
- R0190mass lapse risk
- R0200Lapse type split (other than mass lapse)
- R0210full surrender
- R0220partial surrender
- R0230other
- R0240Life expense risk
- R0250Life catastrophe risk
- R0260Life revision risk
- R0270Mortality and Longevity risk combined aggregate
Columns
- C02400,9
- C02500,975
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
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}.
if {t: S.01.02.01.01, r: R0130, c: C0010} != [s2c_AP:x3] then {t: S.26.14.01.01, c: C0240, z: Z0001} <= {t: S.26.14.01.01, c: C0250, z: Z0001} else true()Other rules on Basic information (S.01.02)
- The CDFs reported in S.26.14 should rise monotonically (BV2496)
- The CDFs reported in S.26.14 should rise monotonically (BV2498)
- The CDFs reported in S.26.14 should rise monotonically (BV2495)
- The CDFs reported in S.26.14 should rise monotonically (BV2499)
- The CDFs reported in S.26.14 should rise monotonically (BV2494)
- The CDFs reported in S.26.14 should rise monotonically (BV2500)
- The CDFs reported in S.26.14 should rise monotonically (BV2493)
- The CDFs reported in S.26.14 should rise monotonically (BV2501)
Every Solvency II rule on S.01.02
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.