The rule in plain words
The diversification effects reported in Solvency Capital Requirement - Life underwriting risk (SR.26.03) [RFF/MP/RM must be equal to the difference between the nSCR and the sum of the capital charge for each risk submodule: mortality, longevity, disability-morbidity, lapse, life expense, revision and life catastrophe
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 six of them (BV602_2-3-3 to BV602_2-3-8), 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.26.03 as reported.
- 05This 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
Content of the submission (SR.01.01.01.01)
Row
- R0890SR.26.03.01 - Solvency Capital Requirement - Life underwriting risk
Column
- C0010Reporting status
Content of the submission (SR.01.01.04.01)
Row
- R0890SR.26.03.01 - Solvency Capital Requirement - Life underwriting risk
Column
- C0010Reporting status
Content of the submission (SR.01.01.07.01)
Row
- R0890SR.26.03.01 - Solvency Capital Requirement - Life underwriting risk
Column
- C0010Reporting status
Solvency capital requirement - for undertakings on standard formula: basic solvency capital requirement (SR.25.01.01.01)
Row
- R0030Life underwriting risk
Columns
- C0030Net solvency capital requirement
- C0040Gross solvency capital requirement
Solvency capital requirement - for undertakings on standard formula: basic solvency capital requirement (SR.25.01.04.01)
Row
- R0030Life underwriting risk
Columns
- C0030Net solvency capital requirement
- C0040Gross solvency capital requirement
Solvency capital requirement - life underwriting risk: life underwriting risk (SR.26.03.01.04)
Rows
- R0100Mortality risk
- R0200Longevity risk
- R0300Disability-morbidity risk
- R0400Lapse risk
- R0500Life expense risk
- R0600Revision risk
- R0700Life catastrophe risk
- R0800Diversification within life underwriting risk module
- R0900Total life underwriting risk
Columns
- C0060Net solvency capital requirement
- C0080Gross solvency capital requirement
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 branch (AEB), annual branch (ARB), annual ECB solo (AES), annual solo (ARS) and annual group (ARG) returns, as a warning.
EIOPA’s own words and formula
In EIOPA’s list of validations, word for word:
The diversification effects reported in SR.26.03 - Solvency Capital Requirement - Life underwriting risk [RFF/MP/RM must be equal to the difference between the nSCR and the sum of the capital charge for each risk submodule: mortality, longevity, disability-morbidity, lapse, life expense, revision and life catastrophe.
Show the formulaShowHide
EIOPA's formula, for BV602_2-3-5. Cells are written as {t: table, r: row, c: column}.
if ({t: SR.01.01.01.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x60] or {t: SR.01.01.01.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x71]) then {t: SR.26.03.01.04, r: R0800, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} = {t: SR.26.03.01.04, r: R0900, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} - ({t: SR.26.03.01.04, r: R0100, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0200, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0300, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0400, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0500, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0600, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0700, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]}) else true()BV602_2-3-3:
if ({t: SR.01.01.07.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x60] or {t: SR.01.01.07.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x71]) then {t: SR.26.03.01.04, r: R0800, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} = {t: SR.26.03.01.04, r: R0900, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} - ({t: SR.26.03.01.04, r: R0100, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0200, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0300, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0400, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0500, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0600, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0700, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]}) else true()BV602_2-3-4:
if ({t: SR.01.01.07.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x60] or {t: SR.01.01.07.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x71]) then {t: SR.26.03.01.04, r: R0800, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} = {t: SR.26.03.01.04, r: R0900, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} - ({t: SR.26.03.01.04, r: R0100, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0200, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0300, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0400, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0500, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0600, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0700, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]}) else true()BV602_2-3-6:
if ({t: SR.01.01.01.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x60] or {t: SR.01.01.01.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x71]) then {t: SR.26.03.01.04, r: R0800, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} = {t: SR.26.03.01.04, r: R0900, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} - ({t: SR.26.03.01.04, r: R0100, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0200, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0300, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0400, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0500, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0600, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0700, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]}) else true()BV602_2-3-7:
if ({t: SR.01.01.04.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x60] or {t: SR.01.01.04.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x71]) then {t: SR.26.03.01.04, r: R0800, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} = {t: SR.26.03.01.04, r: R0900, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} - ({t: SR.26.03.01.04, r: R0100, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0200, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0300, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0400, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0500, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0600, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0700, c: C0080, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]}) else true()BV602_2-3-8:
if ({t: SR.01.01.04.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x60] or {t: SR.01.01.04.01, r: R0890, c: C0010, z: Z0001} = [s2c_CN:x71]) then {t: SR.26.03.01.04, r: R0800, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} = {t: SR.26.03.01.04, r: R0900, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} - ({t: SR.26.03.01.04, r: R0100, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0200, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0300, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0400, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0500, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0600, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]} + {t: SR.26.03.01.04, r: R0700, c: C0060, z: Z0001, filter: [s2c_dim:AO] = [s2c_AO:x2]}) else true()Other rules on Content of the submission (SR.01.01)
- Content of the submission and 2 other templates: a conditional check (BV602_2-1)Blocking
- Content of the submission and 2 other templates: a conditional check (BV602_2-2)Blocking
- Content of the submission and solvency capital requirement - life underwriting risk: a conditional check (BV601_2)Blocking
- Content of the submission and solvency capital requirement - life underwriting risk: a conditional check (BV600_2)Blocking
- Content of the submission and solvency capital requirement - health underwriting risk: a conditional check (BV604_2)Blocking
- Content of the submission and solvency capital requirement - life underwriting risk: a conditional check (BV599_2)Blocking
- Content of the submission and solvency capital requirement - health underwriting risk: a conditional check (BV605_2)Blocking
- Content of the submission and solvency capital requirement - life underwriting risk: a conditional check (BV598_2)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.