The rule in plain words
The sum of Non Proportional reinsurer's share - loss and Proportional reinsurer's share - loss for a given Peril and Year, cannot exceed Gross loss reported in table S.27.02 Insurance loss data
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.
- 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.
- 03It runs only when your filing indicators mark S.27.02 as reported.
- 04This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Catastrophe data - loss data: insurance loss data - reporting for direct business (S.27.02.01.01)
Column
- C0060Gross loss
Catastrophe data - loss data: reinsurance loss data - reporting for gross direct business (S.27.02.01.02)
Columns
- C0080Non proportional reinsurer’s share - loss
- C0090Proportional reinsurer’s share - loss
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.27.02.01.02, c: C0080} + {t: S.27.02.01.02, c: C0090} <= sum({t: S.27.02.01.01, c: C0060, z: Z0001})Other rules on Catastrophe data - loss data (S.27.02)
- Catastrophe data - loss data: non proportional reinsurance accepted: loss - All asset column must be reported as positive amount (BV2567)Blocking
- Catastrophe data - loss data: proportional reinsurance accepted: loss - All asset column must be reported as positive amount (BV2568)Blocking
- Retrocession's share: loss - All asset type column must be reported as positive amount (BV2569)Blocking
- Columns "Non Proportional reinsurance accepted: loss - All asset" and "Proportional reinsurance accepted: loss - All asset" must be reported (BV2570)Blocking
- Catastrophe data - loss data: a value must not be less than another (BV2571)Blocking
- Catastrophe data - loss data and catastrophe data - exposure and premium data: a conditional check (BV2580)Blocking
- Items "Non proportional reinsurer’s share - loss" and "Proportional reinsurer’s share - loss" must be reported (BV2534)Blocking
- Catastrophe data - loss data: values reported in Reinsurance loss data template must be greater than or equal zero (BV2533)Blocking
Every Solvency II rule on S.27.02
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.