The rule in plain words
The item "Net written premiums" reported in Premiums, claims and expenses by line of business (S.05.01) should be less or equal to gross (direct + reinsurance accepted), non-life, by LOB
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 table 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.
- 03EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark S.05.01 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
Premiums, claims and expenses by line of business: non-life (direct business/accepted proportional reinsurance and accepted non-proportional reinsurance) (S.05.01.13.01)
Rows
- R0110Gross - Direct Business
- R0120Gross - Proportional reinsurance accepted
- R0200Net
Columns
- C0010Medical expense insurance
- C0020Income protection insurance
- C0030Workers' compensation insurance
- C0040Motor vehicle liability insurance
- C0050Other motor insurance
- C0060Marine, aviation and transport insurance
- C0070Fire and other damage to property insurance
- C0080General liability insurance
- C0090Credit and suretyship insurance
- C0100Legal expenses insurance
- C0110Assistance
- C0120Miscellaneous financial loss
Which returns it applies to
Line4 Check runs it on financial stability group (QFG) return on EIOPA taxonomy 2.10.0. EIOPA applies it to financial stability group (QFG) returns, as a warning.
EIOPA’s own words and formula
In EIOPA’s list of validations, word for word:
The item "Net written premiums" reported in S.05.01 - Premiums, claims and expenses by line of business should be less or equal to gross (direct + reinsurance accepted), non-life, by LOB.
Show the formulaShowHide
EIOPA's formula. Cells are written as {t: table, r: row, c: column}.
{t: S.05.01.13.01, r: R0200, z: Z0001} <= {t: S.05.01.13.01, r: R0110, z: Z0001} + {t: S.05.01.13.01, r: R0120, z: Z0001}Other rules on Premiums, claims and expenses by line of business (S.05.01)
- Premiums, claims and expenses by line of business: a value must not be more than another (BV657)
- Premiums, claims and expenses by line of business and solvency capital requirement - non-Life underwriting risk: a conditional check (BV672)
- Premiums, claims and expenses by line of business and solvency capital requirement - non-Life underwriting risk: a conditional check (BV673)
- Premiums, claims and expenses by line of business and solvency capital requirement - non-Life underwriting risk: a conditional check (BV674)
- Premiums, claims and expenses by line of business and solvency capital requirement - non-Life underwriting risk: a conditional check (BV675)
- Premiums, claims and expenses by line of business and solvency capital requirement - non-Life underwriting risk: a conditional check (BV676)
- Premiums, claims and expenses by line of business and solvency capital requirement - non-Life underwriting risk: a conditional check (BV677)
- Premiums, claims and expenses by line of business and solvency capital requirement - non-Life underwriting risk: a conditional check (BV678)
Every Solvency II rule on S.05.01
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.