Solvency II pillar 3
Overview of National Specific Templates (NSTs)
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Overview of National Specific Templates (NSTs)
This section contains instructions for the completion of NSTs which, as described in paragraph 1.8 above, are required to be completed by each syndicate on an annual basis from 31 December 2016. The NSTs should also be completed in conjunction with the guidance provided by the PRA including the LOG files (detailed instructions for completion and definitions applicable to all undertakings). These are also provided at Appendix 6. The PRA are currently conducting a consultation with respect to slightly modifying the format of the Excel templates to be submitted, as well as providing clarifications to the general instructions (LOG files) for completion of the templates. This consultation may be found here and is open until 6 December 2016. Upon conclusion of this consultation and the provision of the final requirements by the PRA, expected shortly afterwards, Lloyd’s shall make available the revised final templates and LOG files to managing agents. Please note that not all NSTs are applicable at syndicate level. Specifically NS.01, NS.02, NS.03, NS.04, NS.12 and NS.13 are not applicable at syndicate level. 6.1 NS.05: Revenue Account (Life) Purpose of form : This form reports income, claims incurred and expenses incurred split by gross and reinsurers’ share for life syndicates. This form is required for all reporting years combined. The form should be completed by life syndicates only. Undertaking name – This should be the name of the managing agent Undertaking identification code – This refers to the syndicate number. Please enter in the following format – SC/syndicate number (e.g. SC/9999). Type of code of undertaking – Syndicates should select 2 ‘ specific code ’ (the alternative option, LEI, is not applicable for syndicate reporting). Report reference date – This is the period end date, i.e. for 2016 year end, enter 2016-12-31. Ring fenced fund name – Lloyd’s does not expect syndicates to have ring fenced funds. Written premiums (Gross / Reinsurers’ share) – this relates to premiums as defined in Directive 91/674/EEC Article 35. Written premiums reported in NS.05 should be on a UK GAAP basis and therefore consistent with written premiums reported in ASR 450 for life syndicates only (i.e. excluding Annuities stemming from non-life insurance contracts). Investment income (linked assets) – Lloyd’s do not expect syndicates to report any amount within this line. Realised and unrealised gains (losses) on non-linked assets – this should be calculated using the Solvency II value. 107 Realised and unrealised gains (losses) on linked assets - Lloyd’s do not expect syndicates to report any amount within this line. Claims incurred (Gross / Reinsurers’ share) – as defined in Directive 91/674/EEC Article 38 and the corresponding amounts recoverable from reinsurers. Claims incurred will need to be broken down into the relevant categories as listed on the form and defined in the log file. Claims incurred reported in NS.05 should be on a UK GAAP basis and therefore consistent with claims incurred reported in ASR 450 for life syndicates only (i.e. excluding Annuities stemming from non-life insurance contracts). Expenses incurred – all expenses incurred by the syndicate during the reporting period on accrual basis. Expenses incurred will need to be split into the relevant categories as listed on the form and defined in the LOG file. Expenses incurred reported in NS.05 should be on a UK GAAP basis and therefore consistent with expenses incurred reported in ASR 450 for life syndicates only (i.e. excluding Annuities stemming from non- life insurance contracts). Taxation – we would not expect syndicates to report anything on this line.. Balance Sheet reconciliation (C36 to C46) – should be calculated using the Solvency II value. 6.2 NS.06: Business Model Analysis (Life) Purpose of form : This form collects business model analysis information for the latest financial year as well as forecasts for three years following the current reporting period. This form is required for all reporting years combined. The form should be completed by life syndicates only. Undertaking name – This should be the name of the managing agent Undertaking identification code – This refers to the syndicate number. Please enter in the following format – SC/syndicate number (e.g. SC/9999). Type of code of undertaking – Syndicates should select 2 ‘specific code’ . Report reference date – This is the period end date, i.e. for 2016 year end, enter 2016-12-31. Latest financial year – column shows actual figures for the latest financial year as per the reference date. Most of these figures will correspond to other forms: 1. Revenue (gross) – these amounts should agree to NS.05 / ASR450 for life syndicates only (i.e. excluding Annuities stemming from non-life insurance contracts) 2. Balance sheet – these amounts should agree with ASR002. 3. Capital – these amounts should agree with ASR220 where appropriate. Plan year 1, 2 and 3 – based on syndicate business plans, but adjusted to take into account any material differences between figures for the end of the latest financial year assumed in the business plan and the actual figures. The syndicate should use the most recent business plan approved by its Board at the reference date and be consistent with the data contained within the syndicate business plan information submitted to Lloyd’s . 108 6.3 NS.07: Business Model Analysis (Non-Life) Purpose of form : This form collects business model analysis information for the latest financial year as well as forecasts for three years following the current reporting period. This form is required for all reporting years combined. This form is required for non-life syndicates. Undertaking name – This should be the name of the managing agent. Undertaking identification code – This refer to the syndicate number. Please enter in the following format – SC/syndicate number (e.g. SC/9999). Type of code of undertaking – Syndicates should select 2 ‘specific code’ Report reference date – This is the period end date, i.e. for 2016 year end, enter 2016-12-31. Report submission date – This is the date when the report is sent to the PRA. For the 2016 year end, please enter 2017-05- 19 (the deadline date for Lloyd’s to submit the return to the PRA) . Type of undertaking – Syndicates should select 3 for ‘Non - Life’. Regular / ad-hoc submission – Syndicates should select ‘Regular’ Currency used for reporting – Syndicates should select “GBP” . Accounting standards – Syndicates should select ‘ 2 – The undertaking is using local GAAP (other than IFRS)’. Initial submission or re-submission – Syndicates should select “1 – Initial submission”. Business year – select the relevant business year. Syndicates must report all four business years ie financial periods separately. As at 31 December 2016 this shall be for 2016 and as projected for the following three years ie 2017, 2018 and 2019. Business year (Reporting Period) – Syndicate should report actual figures for the latest financial year as per the reference date. Most of these figures will correspond to other forms: 1. Income – these amounts should agree to ASR440 where appropriate. 2. Expenditure – these amounts should agree to ASR440 (and ASR450 relating to Annuities from non- life (re)insurance contracts) where appropriate. 3. Balance sheet – these amounts should agree with ASR002. 4. Basic own funds – these amounts should agree with ASR220 where appropriate. Business (Plan) year 1, 2 and 3 – Syndicates should use the most recent business plan approved by its Board at the reference date. SII Lines of business (LoB) – majority of information is required by Solvency II LoBs, with additional reporting by distribution channel required for the following LoBs: - Income protection - Personal lines motor - Personal lines property Income – These items shall be reported on a UK GAAP basis but using Solvency II LoBs. Expenditure - These items shall be reported on a UK GAAP basis but using Solvency II LoBs. 1. Claims Incurred - as defined in Directive 91/674/EEC Article 38. 109 2. Total Expenses – these relate to technical expenses and therefore should be consistent with expenses reported in ASR440. 3. We would not expect syndicates to report anything on this line. Balance sheet – These items shall be reported on a Solvency II basis. Own funds - These items shall be reported on a Solvency II basis. 6.4 NS.08: Business Model Analysis – Financial Guarantee Insurers Purpose of form : This form collects information about the portfolio of securities against which financial guarantees have been given to facilitate business model analysis. This form is required for all reporting years combined. This form is required only for syndicates which underwrite financial guarantee insurance. Undertaking name – This is the name of the managing agent. Undertaking identification code – This refers to the syndicate number. Please enter in the following format – SC/syndicate number (e.g. SC/9999). Type of code of undertaking – Syndicates should select 2 ‘specific code’ . Report reference date – This is the period end date, i.e. for 2016 year end, enter 2016-12-31. Currency used for reporting – Syndicates should select ‘ GBP ’. Exposure analysis – Details of every financial guarantee in-force as at reporting date is required to be reported. The specific details required are as follows: - ID code - ID code type - Item title - Issuer name - Issuer code - Type of issuer code - Issuer sector - Issuer group - Issuer group code - Type of issuer group code - Issuer country - CIC - Type of security - Type of structured product - External rating - Rating agency - Expected loss given default - Probably of default - Internal rating - Watchlist - Mean term - Inception date - Expected maturity date - Currency - Gross par exposure 110 Please refer to the PRA LOG file (provided at Appendix 6) for detailed definitions on each of the above fields. Future cash flows (undiscounted) (Premiums receivable) – an entry is required for every guarantee in- force at the reporting date, for which there is a future stream of premium income. Premium receivables reported should be consistent with the aggregate cash flows reported in ASR244. Future cash flows (undiscounted) (Claims payable) - an entry is required for every guarantee in-force at the reporting date, for which there is a future stream of claim payments / subrogation recoveries. Claims payable reported should be consistent with the aggregate cash flows reported in ASR244. 6.5 NS.09: Best Estimate Assumptions for Life Insurance Risks Purpose of form : This form provides an indication of changes in the valuation basis, how the basis compares with experience and the variability of the syndicate ’s recent experience. The form should be completed by life syndicates only. Undertaking name – This is the name of the managing agent. Undertaking identification code – This refers to the syndicate number. Please enter in the following format – SC/syndicate number (e.g. SC/9999). Type of code of undertaking – Syndicates should select 2 ‘specific code’ . Report reference date – This is the period end date, i.e. for 2016 year end, enter 2016-12-31. Assumptions – please complete as appropriate and relevant for the syndicate’s business reflecting the guidance provided in the LOG file. 6.6 NS.10: Projection of future cash flows (Best Estimate - Non Life: Liability claim types) Purpose of form : This form collects information on best estimate cash flows relating to bodily injury claims and latent claim obligations of non-life business. This form is required for all reporting years combined. The form should be completed by non-life syndicates that carry out any of the following Solvency II LoBs: - Motor vehicle liability insurance and proportion reinsurance - Marine, aviation and transport insurance and proportional reinsurance - General liability insurance and proportional reinsurance - Non-proportional casualty reinsurance - Non-proportional marine, aviation and transport reinsurance Where the syndicate meets this criteria, it must complete NS.10 for each applicable business category as set out at the end of section 6.6, below. The information required within this form supplements the information syndicates are required to provide on ASR244, but for the following additional items: - ‘Best estimate claims provisions (gross) – cash out-flows – future benefits’ is to be reported for specific claim types as defined in the log file. - Actual historical cash out-flows of payments to policyholders & beneficiaries are to be reported for specified claim types. 111 - Cash flows for specified categories of business are to be reported. Undertaking name – This is the name of the managing agent. Undertaking identification code – This refers to the syndicate number. Please enter in the following format – SC/syndicate number (e.g. SC/9999). Type of code of undertaking – Syndicates should select 2 ‘specific code’ . Report reference date – This is the period end date, i.e. for 2016 year end, enter 2016-12-31. Report submission date – This is the date when the report is sent to the PRA. For the 2016 year end, please enter 2017-05-19 (the deadline date for Lloyd’s to submit the return to the PRA) Type of undertaking – Syndicates should s elect 3 for ‘Non - Life’ . Regular / ad-hoc submission – select ‘Regular’ Currency used for reporting – select relevant currency based on the ‘Category of business’ to be report ed as described at the end of section 6.6 (in certain cases this is original currency not GBP). Initial submission or re-submission – syndicates should select ‘ 1 – Initial submiss ion’ . Category of Business – Syndicates should select from the closed list. If syndicate has no cash-flows for a particular category, select ‘ Null return ’ in the ‘ Null return for combination of category and insurance / inwards reinsurance ’ field below. Insurance or inwards reinsurance business – Syndicates should select from the closed list. Insurance and inwards reinsurance business must be reported on separate tabs. Causes of cash out-flows / benefits – Health Hazard: other – List the top causes of other health hazard latent claims payments which have been included in claim provision / cash out-flows / future benefits / health hazards: other in column C0400. Causes of cash out-flows / benefits – Other latent or very long tail claims – List the top causes of other latent or very long tail claims payments which have been included in claim provision / cash out-flows / future benefits / other latent or very long tail claims in column C0410. Null return for combination of category and insurance / inwards reinsurance – select from the closed list either: - Null return – if syndicate has no cash flows for a category of business - Cash flows reported – if syndicate cash flows are to be reported. Brief description of cash flows not required to be reported on ASR244 – if cash flows items are not required to be reported on ASR244 then they are not required to be reported on this form. However, a brief description should be provided of these cash flow items not reported. Cash flows to be reported - Undiscounted - Split into two types of cash flows: o Historical cash flows from the past 5 years (year -4 to 0), e.g. for 2016 year end, syndicates are to report cash flows in each of the financial years 2012, 2013, 2014, 2015 and 2016 respectively. These cash flows are defined as: Actual payments to policyholders or beneficiaries Include costs incurred by policyholders in defending plaintiff claims Net of any contribution from other insurers Gross of reinsurance Can include claims management expenses directly attributable to individual claims 112 o Best estimate claim provision (gross) – cash out-flows for 31+ years (year 1 to 30 separately, and 31 & after combined). These cash flows are defined as: Expected payments to policyholders or beneficiaries as defined in Article 78(3) of the Solvency II Directive Include costs incurred by policyholders in defending plaintiff claims Net of any contribution from other insurers Gross of reinsurance - Allocation of future cash flows to financial years reported should be on the same basis as how cash flows are allocated on ASR244. - Cash flows relating to annuities stemming from non-life insurance contracts should be excluded. Categories of business to be reported – there shall be a form completed for each of the below business categories in the following currencies: - Motor Vehicle Liability – GBP - UK Employers Liability – GBP - UK General Liability and MAT (but excluding UK Employers Liability) – GBP - US General Liability and MAT – USD* - EU (non-UK) General Liability and MAT – EUR* - Australian General Liability and MAT – AUD* - Other General Liability and MAT (i.e. other than UK, US, EU states or AUS) – GBP - Other categories from which bodily injury or latent claims have arisen – GBP * The information for these categories is to be reported in original currency not GBP The submission of this form is to comprise of a total of 16 tabs – one tab for each business category and insurance / inwards reinsurance category detailed above. 6.7 NS.11: Non-life - Claim Development Information (General Liability sub-classes) Purpose of form : This form reports, for each General Liability sub-class and material currency, development triangles for Gross Claims Paid, Gross Best Estimate (undiscounted) Claims Provision, Gross RBNS and Gross Estimated Ultimate Premium by pure underwriting year. This form is required for all reporting years combined. The form must be completed by all syndicates that carry on any of the following sub-classes of General Liability non-life insurance business (Lloyd’s risk codes shown as a guide) : - Employers Liability (W3 and W4) - Public & Products Liability (no specific risk code assigned) - Professional Indemnity (F2, F3, F4, F5, BB, CY, CZ, D2, D3, D4, D5, D6, D7, D8, D9, DM, DO, E2, E3, E4, E5, E6, E7, E8 and E9) The form requires syndicates to report the following development triangles gross of reinsurance for each of the classes (split by currency) referred to above: - Gross claims paid (consistent with ASB245) - Best estimate claims provisions (consistent with ASB246) - Reported but not settled (RBNS) claims (consistent with ASB247) - Gross estimated ultimate premium – estimated ultimate premium at the reference date for each of the 15 origin years. As syndicates are required to report on an underwriting year basis as origin year, then premiums reported should be gross written premiums for each of the 15 pure underwriting years in the form. 113 The default length of run-off triangle is 15+1 years for all lines of business (i.e. the 15 most recent pure years reported separately and all the earlier pure years reported in aggregate). The reporting threshold applies at Lloyd’s level and therefore development triangles are required to be completed for all three sub-classes of General Liability listed above. Please refer to the instructions on ASB245, 246 and 247 for further guidance on the following requirements as NS.11 follows on from these summary forms: - Pure underwriting year basis. - Historical data – for Claims Paid and RBNS Claims. Not required for Best Estimates of Claims Provisions. - RITC (both inwards and outwards) - Currency – 6+1 currencies Inflation rates are also required to be reported for each class of business, only in the case of using methods that take into account inflation to adjust data (consistent with ASB248). Undertaking name – This is the name of the managing agent. Undertaking identification code – This refers to the syndicate number. Please enter in the following format – SC/syndicate number (e.g. SC/9999). Type of code of undertaking – Syndicates should select 2 ‘specific code’ . Report reference date – This is the period end date, i.e. for 2016 year end, enter 2016-12-31. Report submission date – This is the date when the report is sent to the PRA. For the 2016 year end, please enter 2017-05- 19 (the deadline date for Lloyd’s to submit the return to the PRA) . Type of undertaking – Syndicates should s elect 3 for ‘Non - Life’. Regular / ad-hoc submission – Syndicates should select ‘Regular’ Currency used for reporting – Select relevant curre ncy based on the ‘Category of business’ to be reported. Initial submission or re-submission – S yndicates should select ‘1 – Initial submission’. Line of business - Select from the closed list of general liability sub-classes. Syndicates should complete a form for each of the classes listed. Reporting basis – S yndicates should select ‘Underwriting Year’. Download 5.01 Kb. Do'stlaringiz bilan baham: 
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