Non-life technical provisions: a total must equal the sum of its parts (IR.17.01, Bank of England rule IR_bv1900_02)

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 table below and find the cells the rule reads.
2. 02Add up the parts in your return and compare the result with the total.
3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
4. 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
5. 05It runs only when your filing indicators mark IR.17.01 as reported.
6. 06This 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 quarterly solo (QRS) return on Bank of England taxonomy 2.2.0. The Bank of England applies it to quarterly solo (QRS) 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 amount reported as "Total Best estimate - net" reported in IR.17.01.02.01 - Non-Life Technical Provisions should be equal to the sum of "Net Best Estimate of Premium Provisions" and "Net Best Estimate of Provision for claims outstanding ".

Other rules on Non-life technical provisions (IR.17.01)

Every Solvency UK rule on IR.17.01

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.