The rule in plain words
In Z0020, hierarchy options 1 to 3 must be reported only during ARS entry point, and options 4 to 5 must be only reported only during ARG entry point
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 IRR.25.04 as reported.
- 04This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Solvency capital requirement (IRR.25.04.01.01)
Rows
- R0070Interest rate risk
- R0080Equity risk
- R0090Property risk
- R0100Spread risk
- R0110Concentration risk
- R0120Currency risk
- R0125Other market risk
- R0130Diversification within market risk
- R0140Market risk
- R0150Type 1 exposures
- R0160Type 2 exposures
- R0165Other counterparty risk
- R0170Diversification within counterparty default risk
- R0180Counterparty default risk
- R0190Mortality risk
- R0200Longevity risk
- R0210Disability-Morbidity risk
- R0220Life-expense risk
- R0230Revision risk
- R0240Lapse risk
- R0250Life catastrophe risk
- R0255Other life underwriting risk
- R0260Diversification within life underwriting risk
- R0270Life underwriting risk
- R0280Health SLT risk
- R0290Health non SLT risk
- R0300Health catastrophe risk
- R0305Other health underwriting risk
- R0310Diversification within health underwriting risk
- R0320Total health underwriting risk
- R0330Non-life premium and reserve risk (ex catastrophe risk)
- R0340Non-life catastrophe risk
- R0350Lapse risk
- R0355Other non-life underwriting risk
- R0360Diversification within non-life underwriting risk
- R0370Non-life underwriting risk
- R0400Intangible asset risk
- R0422Operational risk
- R0424Other risks
- R0430Operational and other risks
And 13 more.
Column
- C0010c
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
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 count({t: IRR.25.04.01.01, r: R0070; R0080; R0090; R0100; R0110; R0120; R0125; R0130; R0140; R0150; R0160; R0165; R0170; R0180; R0190; R0200; R0210; R0220; R0230; R0240; R0250; R0255; R0260; R0270; R0280; R0290; R0300; R0305; R0310; R0320; R0330; R0340; R0350; R0355; R0360; R0370; R0400; R0422; R0424; R0430; R0432; R0434; R0436; R0438; R0440; R0450; R0455; R0460; R0472; R0474; R0480; R0490; R0495, c: C0010, z: Z0001, filter: [s2c_dim:PO] = [s2c_PU:x96] or [s2c_dim:PO] = [s2c_PU:x53] or [s2c_dim:PO] = [boec_s2c_PU:b5] or [s2c_dim:PO] = [boec_s2c_PU:b251] or [s2c_dim:PO] = [boec_s2c_PU:b252]}) >= 1 then count({t: IRR.25.04.01.01, r: R0070; R0080; R0090; R0100; R0110; R0120; R0125; R0130; R0140; R0150; R0160; R0165; R0170; R0180; R0190; R0200; R0210; R0220; R0230; R0240; R0250; R0255; R0260; R0270; R0280; R0290; R0300; R0305; R0310; R0320; R0330; R0340; R0350; R0355; R0360; R0370; R0400; R0422; R0424; R0430; R0432; R0434; R0436; R0438; R0440; R0450; R0455; R0460; R0472; R0474; R0480; R0490; R0495, c: C0010, z: Z0001, filter: [s2c_dim:PO] = [s2c_PU:x96] or [s2c_dim:PO] = [s2c_PU:x53] or [s2c_dim:PO] = [boec_s2c_PU:b5]}) >= 1 else true()Other rules on Solvency capital requirement (IRR.25.04)
- Solvency capital requirement: a conditional check (IR_bv3038_02)Blocking
- Solvency capital requirement: SCR = sum of notional SCRs (SF firms) (IR_bv2050)Blocking
- Solvency capital requirement: SCR including CAO = SCR including undisclosed CAO + disclosed CAO components (IR_bv2049_03)Blocking
- SCR excluding capital add-on (PIM and IM firms) = sum of IR.25.05 components + diversification between risk modules (IR_bv2048_03-01)Blocking
- SCR excluding capital add-on (PIM and IM firms) = sum of IR.25.05 components + diversification between risk modules (IR_bv2048_03-02)Blocking
- Solvency capital requirement: SCR excluding CAO (SF firms) = total after diversification + LACTP + LACDT + other adjustments (IR_bv2047_03)Blocking
- Solvency capital requirement: total after diversification = total before diversification + diversification (IR_bv2046_03)Blocking
- Solvency capital requirement: total before diversification between risk modules = sum of risk modules (IR_bv2045_03)Blocking
Every Solvency UK rule on IRR.25.04
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.
