Solvency capital requirement - non-life and health catastrophe risk: diversification should be disclosed as a negative factor (S.27.01, SR.27.01, EIOPA rule BV2539)

The rule in plain words

EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs three of them (BV2539-1 to BV2539-3), and a failure names the one that failed.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02Compare the values in your return. If the first is bigger than it may be, one of them is wrong: check both before you change either.
3. 03It runs only when your filing indicators mark S.27.01 as reported.
4. 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

Which returns it applies to

Line4 Check runs it on annual solo (ARS), annual group (ARG) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual ECB solo (AES), annual ECB branch (AEB), annual solo (ARS), annual branch (ARB) and annual group (ARG) 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.

Other rules on Solvency capital requirement - non-life and health catastrophe risk (S.27.01)

Every Solvency II rule on S.27.01

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.