The rule in plain words
A greater than zero amount is reported under 'Premiums written - gross - direct' (row R0111), therefore a greater than zero number or amount should typically be reported in at least one of the rows: 'Number of risks written in the period - direct - both new and renewal business' (row r1710); or 'Sum insured in-force at end of the period - direct' (row R1730) for the lines of business in columns C0130, C0141, C0151, C0160, C0180, C0190, C0200, C0210, C0220, C0230, C0240, C0250, C0260
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.
- 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.
- 03It runs only when your filing indicators mark IR.05.04 as reported.
- 04This 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
Non-life income and expenditure: non-life income, expenditure and business model analysis: reporting period (IR.05.04.01.01)
Rows
- R0111Gross written premiums - insurance (direct)
- R1710Number of risks written in the period - insurance (direct)
- R1730Sum insured in-force at end of the period - insurance (direct)
Columns
- C0130Workers' compensation insurance (lines of business 3 and 15)
- C0141Non-personal lines (sub-class of line of business 4)
- C0151Non-personal lines (sub-class of line of business 5)
- C0160Marine, aviation and transport insurance (lines of business 6 and 18)
- C0180Non-personal lines (sub-class of line of business 7)
- C0190Employers Liability (sub-class of line of business 8)
- C0200Public & products Liability (sub-class of line of business 8)
- C0210Professional Indemnity (sub-class of line of business 8)
- C0220Other general liability (sub-class of line of business 8)
- C0230Credit and suretyship insurance (lines of business 9 and 21)
- C0240Legal expenses insurance (lines of business 10 and 22)
- C0250Assistance (lines of business 11 and 23)
- C0260Miscellaneous financial loss (lines of business 12 and 24)
Which returns it applies to
Line4 Check runs it on annual solo (ARS) and annual third-country branch (ARB) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual solo (ARS) and annual third-country branch (ARB) returns, as a warning.
The Bank’s own words and formula
The plain words above are the Bank of England’s own, word for word, from its list of validations.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
if {t: IR.05.04.01.01, r: R0111} > 0 then ({t: IR.05.04.01.01, r: R1710} > 0 or {t: IR.05.04.01.01, r: R1730} > 0) else true()Other rules on Non-life income and expenditure (IR.05.04)
- Non-life income and expenditure: a conditional check (IR_bv0008)
- Non-life income and expenditure: a conditional check (IR_bv0010)
- Non-life income and expenditure: a conditional check (IR_bv0007)
- Non-life income and expenditure: a conditional check (IR_bv0011)
- Non-life income and expenditure: a conditional check (IR_bv0006)
- Non-life income and expenditure: a conditional check (IR_bv0012)
- Non-life income and expenditure: a conditional check (IR_bv0005)
- Non-life income and expenditure: a conditional check (IR_bv0013)
Every Solvency UK rule on IR.05.04
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.