Content of the submission and solvency capital requirement - non-life underwriting risk: a conditional check (IR.01.01, IR.26.05, Bank of England rule IR_bv1218)

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 IR.01.01 and IR.26.05 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 diversification effects reported in IR.26.05 - Solvency Capital Requirement - Non-Life underwriting risk should be equal to the difference between the nSCR for non-life underwriting risk and the sum of the capital charges for premium and reserve risk, non-life lapse risk and non-life catastrophe risk.

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

Every Solvency UK rule on IR.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.