Content of the submission and solvency capital requirement - non-life and health catastrophe risk: a conditional check (IRR.01.01, IRR.27.01, Bank of England rule IR_bv0801)

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. 03The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
4. 04It runs only when your filing indicators mark IRR.01.01 and IRR.27.01 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) return on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual solo (ARS) returns, as a blocking check.

The Bank’s own words and formula

In the Bank of England’s list of validations, word for word:

The item "Catastrophe Risk Charge Liability after risk mitigation" reported in IRR.27.01 - Solvency Capital Requirement - Non-life and Health catastrophe risk [RFF/MP/RM] should be equal to "Catastrophe Risk Charge Liability before risk mitigation" minus "Estimated Risk Mitigation" added by "Estimated Reinstatement Premiums".

Other rules on Content of the submission (IRR.01.01)

Every Solvency UK rule on IRR.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.