Best estimate assumptions for life insurance risks: current year basis c0010 and previous year basis c0020 >= 0 (IR.12.04, Bank of England rule IR_bv1402)

The rule in plain words

What to do if your return fails it

1. 01Open the table below and find the cells the rule reads.
2. 02Look for a value below zero in these cells, such as an amount entered as a negative number.
3. 03It runs only when your filing indicators mark IR.12.04 as reported.
4. 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

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 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.

Other rules on Best estimate assumptions for life insurance risks (IR.12.04)

Every Solvency UK rule on IR.12.04

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.