The rule in plain words
The amount reported as "Technical provisions minus recoverables from reinsurance/SPV and Finite Re- total" reported in Non-Life Technical Provisions (SR.17.01) [RFF/MP/RM] must be equal to the sum of "Technical provisions calculated as a whole", "Total Best estimate - gross", "Risk margin" and "Amount of the transitional on Technical Provisions" minus the "Recoverable from reinsurance contract/SPV and Finite Re after the adjustment for expected losses due to counterparty default"
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.
EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs 34 of them (BV523_2-2 to BV523_2-35), and a failure names the one that failed.
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.
- 03EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark SR.01.01 and SR.17.01 as reported.
- 05This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Content of the submission (SR.01.01.01.01)
Row
- R0810SR.17.01.01 - Non-Life Technical Provisions
Column
- C0010Reporting status
Content of the submission (SR.01.01.07.01)
Row
- R0810SR.17.01.01 - Non-Life Technical Provisions
Column
- C0010Reporting status
Non-life technical provisions (SR.17.01.01.01)
Rows
- R0010Technical provisions calculated as a whole
- R0050Total Recoverables from reinsurance/SPV and Finite Re after the adjustment for expected losses due to counterparty default associated to TP calculated as a whole
- R0270Total Best estimate - net
- R0280Risk margin
- R0290Technical Provisions calculated as a whole
- R0300Best estimate
- R0310Risk margin
- R0340Technical provisions minus recoverables from reinsurance/SPV and Finite Re - total
Columns
- C0020Medical expense insurance
- C0030Income protection insurance
- C0040Workers' compensation insurance
- C0050Motor vehicle liability insurance
- C0060Other motor insurance
- C0070Marine, aviation and transport insurance
- C0080Fire and other damage to property insurance
- C0090General liability insurance
- C0100Credit and suretyship insurance
- C0110Legal expenses insurance
- C0120Assistance
- C0130Miscellaneous financial loss
- C0140Non-proportional health reinsurance
- C0150Non-proportional casualty reinsurance
- C0160Non-proportional marine, aviation and transport reinsurance
- C0170Non-proportional property reinsurance
- C0180Total Non-Life obligation
Which returns it applies to
Line4 Check runs it on annual solo (ARS) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual branch (ARB), annual ECB branch (AEB), annual solo (ARS) and annual ECB solo (AES) returns, as a blocking check.
EIOPA’s own words and formula
In EIOPA’s list of validations, word for word:
The amount reported as "Technical provisions minus recoverables from reinsurance/SPV and Finite Re- total" reported in SR.17.01 - Non-Life Technical Provisions [RFF/MP/RM] must be equal to the sum of "Technical provisions calculated as a whole", "Total Best estimate - gross", "Risk margin" and "Amount of the transitional on Technical Provisions" minus the "Recoverable from reinsurance contract/SPV and Finite Re after the adjustment for expected losses due to counterparty default".
Show the formulaShowHide
EIOPA's formula, for BV523_2-19. Cells are written as {t: table, r: row, c: column}.
if ({t: SR.01.01.01.01, r: R0810, c: C0010, z: Z0001} = [s2c_CN:x1]) then {t: SR.17.01.01.01, r: R0340, c: C0180, z: Z0001} = {t: SR.17.01.01.01, r: R0010, c: C0180, z: Z0001} - {t: SR.17.01.01.01, r: R0050, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0270, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0280, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0290, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0300, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0310, c: C0180, z: Z0001} else true()BV523_2-2:
if ({t: SR.01.01.07.01, r: R0810, c: C0010, z: Z0001} = [s2c_CN:x1]) then {t: SR.17.01.01.01, r: R0340, c: C0180, z: Z0001} = {t: SR.17.01.01.01, r: R0010, c: C0180, z: Z0001} - {t: SR.17.01.01.01, r: R0050, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0270, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0280, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0290, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0300, c: C0180, z: Z0001} + {t: SR.17.01.01.01, r: R0310, c: C0180, z: Z0001} else true()BV523_2-3:
if ({t: SR.01.01.07.01, r: R0810, c: C0010, z: Z0001} = [s2c_CN:x1]) then {t: SR.17.01.01.01, r: R0340, c: C0170, z: Z0001} = {t: SR.17.01.01.01, r: R0010, c: C0170, z: Z0001} - {t: SR.17.01.01.01, r: R0050, c: C0170, z: Z0001} + {t: SR.17.01.01.01, r: R0270, c: C0170, z: Z0001} + {t: SR.17.01.01.01, r: R0280, c: C0170, z: Z0001} + {t: SR.17.01.01.01, r: R0290, c: C0170, z: Z0001} + {t: SR.17.01.01.01, r: R0300, c: C0170, z: Z0001} + {t: SR.17.01.01.01, r: R0310, c: C0170, z: Z0001} else true()BV523_2-4:
if ({t: SR.01.01.07.01, r: R0810, c: C0010, z: Z0001} = [s2c_CN:x1]) then {t: SR.17.01.01.01, r: R0340, c: C0160, z: Z0001} = {t: SR.17.01.01.01, r: R0010, c: C0160, z: Z0001} - {t: SR.17.01.01.01, r: R0050, c: C0160, z: Z0001} + {t: SR.17.01.01.01, r: R0270, c: C0160, z: Z0001} + {t: SR.17.01.01.01, r: R0280, c: C0160, z: Z0001} + {t: SR.17.01.01.01, r: R0290, c: C0160, z: Z0001} + {t: SR.17.01.01.01, r: R0300, c: C0160, z: Z0001} + {t: SR.17.01.01.01, r: R0310, c: C0160, z: Z0001} else true()BV523_2-5:
if ({t: SR.01.01.07.01, r: R0810, c: C0010, z: Z0001} = [s2c_CN:x1]) then {t: SR.17.01.01.01, r: R0340, c: C0150, z: Z0001} = {t: SR.17.01.01.01, r: R0010, c: C0150, z: Z0001} - {t: SR.17.01.01.01, r: R0050, c: C0150, z: Z0001} + {t: SR.17.01.01.01, r: R0270, c: C0150, z: Z0001} + {t: SR.17.01.01.01, r: R0280, c: C0150, z: Z0001} + {t: SR.17.01.01.01, r: R0290, c: C0150, z: Z0001} + {t: SR.17.01.01.01, r: R0300, c: C0150, z: Z0001} + {t: SR.17.01.01.01, r: R0310, c: C0150, z: Z0001} else true()BV523_2-6:
if ({t: SR.01.01.07.01, r: R0810, c: C0010, z: Z0001} = [s2c_CN:x1]) then {t: SR.17.01.01.01, r: R0340, c: C0140, z: Z0001} = {t: SR.17.01.01.01, r: R0010, c: C0140, z: Z0001} - {t: SR.17.01.01.01, r: R0050, c: C0140, z: Z0001} + {t: SR.17.01.01.01, r: R0270, c: C0140, z: Z0001} + {t: SR.17.01.01.01, r: R0280, c: C0140, z: Z0001} + {t: SR.17.01.01.01, r: R0290, c: C0140, z: Z0001} + {t: SR.17.01.01.01, r: R0300, c: C0140, z: Z0001} + {t: SR.17.01.01.01, r: R0310, c: C0140, z: Z0001} else true()And 28 more, the same rule on other tables or returns.
Other rules on Content of the submission (SR.01.01)
- Content of the submission and non-life technical provisions: a conditional check (BV522_2)Blocking
- The item "Total liabilities" reported in Balance sheet [RFF/MP/RM] must be equal to the sum of the different items reported above (BV520_2-1)Blocking
- The item "Total liabilities" reported in Balance sheet [RFF/MP/RM] must be equal to the sum of the different items reported above (BV520_2-2)Blocking
- The item "Total liabilities" reported in Balance sheet [RFF/MP/RM] must be equal to the sum of the different items reported above (BV519_2-1)Blocking
- The item "Total liabilities" reported in Balance sheet [RFF/MP/RM] must be equal to the sum of the different items reported above (BV519_2-2)Blocking
- The item "Total assets" reported in Balance sheet [RFF/MP/RM] must be equal to the sum of the different items reported above (BV518_2-1)Blocking
- The item "Total assets" reported in Balance sheet [RFF/MP/RM] must be equal to the sum of the different items reported above (BV518_2-2)Blocking
- The item "Total assets" reported in Balance sheet [RFF/MP/RM] must be equal to the sum of the different items reported above (BV517_2-1)Blocking
Every Solvency II rule on SR.01.01
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.