Impact of long-term guarantees measures and transitionals and minimum capital requirement - only life or only non-life insurance or reinsurance activity: a conditional check (S.22.01, S.28.01, EIOPA rule BV916)

The rule in plain words

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

1. 01Open the tables below and find the cells the rule reads.
2. 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.
3. 03EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
4. 04It runs only when your filing indicators mark S.28.01 as reported.
5. 05This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

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 solo (ARS), annual ECB solo (AES) and annual ECB branch (AEB) returns, as a blocking check.

EIOPA’s own words and formula

In EIOPA’s list of validations, word for word:

The MCR reported in S.28.01 - Minimum Capital Requirement - Only life or only non-life insurance or reinsurance activity must be equal or larger than 25% of the "SCR" and equal or less than 45% of the "SCR" when the "MCR" is different from the "Absolute floor of the MCR".

Other rules on Impact of long-term guarantees measures and transitionals (S.22.01)

Every Solvency II rule on S.22.01

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.