When calculating their prudential technical provisions within the meaning of Article L. 351-2, insurance and reinsurance undertakings segment their commitments into homogeneous risk groups and, at a minimum, by lines of business as defined in Article 55 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014.
When calculating claims arising from reinsurance contracts and securitisation vehicles, insurance and reinsurance undertakings shall comply with Articles L. 351-2 and R. 351-2 to R. 351-11. They take into account the time lag between recoveries and direct payments. The result of this calculation is adjusted to take account of probable losses due to counterparty default. This adjustment is based on an assessment of the probability of default by the counterparty…
Insurance and reinsurance undertakings must put in place internal processes and procedures to ensure the appropriateness, completeness and accuracy of the data used in the calculation of their prudential technical provisions referred to in Article L. 351-2. Where, in particular circumstances, as defined in Article 19 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014, insurance and reinsurance undertakings do not have sufficient data of appropriate quality to…
Insurance and reinsurance undertakings shall put in place processes and procedures to ensure that their best estimates and the assumptions underlying the calculation of their best estimates are regularly compared with experience. Where this comparison reveals a systematic difference between experience and the company’s best estimate calculations, the company shall make the appropriate adjustments to the actuarial methods used or assumptions made.
At the request of the Autorité de contrôle prudentiel et de résolution, insurance and reinsurance undertakings shall demonstrate the appropriateness of the level of their prudential technical provisions referred to in Article L. 351-2, as well as the applicability and relevance of the methods they apply and the adequacy of the underlying statistical data they use.
I.-In each currency, the calculation of the adjustment referred to in Article L. 351-4 corresponds to a fraction of the difference between: 1° the interest rate determined by the insurance or reinsurance undertaking in accordance with the provisions in force at 31 December 2015; and 2° The effective annual rate, calculated as the single discount rate which, if applied to the cash flows of the portfolio of eligible insurance and…
I.-The transitional deduction referred to in Article L. 351-5 corresponds to a fraction of the difference between the following two amounts: a) the technical provisions after deduction of receivables arising from reinsurance contracts and securitisation vehicles, calculated in accordance with Article L. 351-2, as at 1 January 2016; and b) Technical provisions after deduction of receivables arising from reinsurance contracts, calculated in accordance with the provisions in force at 31…
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is a Registered Trademark of
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182, rue de Rivoli
75001, Paris France
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Paris Bar Registration n° (Toque) C2396
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