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Article 265 - Valuation of technical provisions — documentation

Article 265
Valuation of technical provisions — documentation

1.Insurance and reinsurance undertakings shall document the following processes:

(a)

the collection of data and analysis of its quality and other information that relates to the calculation of technical provisions;

(b)

the choice of assumptions used in the calculation of technical provisions, in particular the choice of relevant assumptions about the allocation of expenses;

(c)

the selection and application of actuarial and statistical methods for the calculation of technical provisions;

(d)

the validation of technical provisions.

2.For the purposes of point (a) of paragraph 1, the documentation shall include:

(a)

a directory of the data used in the calculation of the technical provisions, specifying their source, characteristics and usage;

(b)

the specification for the collection, processing and application of data referred to in Article 19(3)(e);

(c)

where data are not used consistently over time in the calculation of technical provisions, a description of the inconsistent use and its justification.

3.For the purposes of point (b) of paragraph 1, the documentation shall include:

(a)

a directory of all the relevant assumptions that the calculation of technical provisions are based upon; this shall include assumptions on future management actions;

(b)

a justification for the choice of the assumption in accordance with Subsection 1 of Section 3 of Chapter III;

(c)

a description of the inputs on which the choice is based;

(d)

the objectives of the choice and the criteria used for determining the appropriateness of this choice;

(e)

any material limitations in the choice made;

(f)

a description of the processes in place to review the choice of assumptions;

(g)

a justification for the changes of assumptions from one period to another and an estimation of the impact of material changes;

(h)

the relevant deviations referred to in Article 23(2).

Official text · consolidated version 14/11/2024 (in force) Open full page ↗
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