Solvency II - Lloyd's

This form should be reported for each Solvency II line of business, but direct and accepted proportional
reinsurance should be reported together.
Currency: There is a materiality threshold applicable in determining the number of currencies required to be
reported. However, this materiality applies at the Lloyd’s level and hence the following ‘six plus one’
currencies have been determined; USD, GBP, EUR, CAD, AUD, JPY and OTHER. Reporting is required
based on the original currencies but converted to GBP using the year end closing rate.
Gross claims paid (undiscounted): This is the non-cumulative i.e. claims paid in the respective calendar
year, undiscounted amount and gross of salvage and subrogation.
2.8 QMC244: Non-life insurance claims information - Gross undiscounted best estimate
claims provisions
Purpose of form: This form reports, for each line of business and material currency, development triangles for
best estimate (undiscounted) claims provision.
This form is required for all reporting years combined and will be required on an annual basis. A split of gross
amount, salvage & subrogation and recoverable from reinsurance should not be provided.
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) but where a syndicate has existed
for less than 15 years, it should report triangles for that period it has been in existence. The information will
either be required on accident year or underwriting year but EIOPA is yet to decide on the basis. Historical
data, starting from the first time application of Solvency II (i.e. 1 January 2014), is required on a best efforts
basis. Hence, the first pure year required to be reported separately will be 2000 and reporting on a best
efforts basis will only apply for 2013 and prior.
In the case of RITC (both inwards and outwards), the ceding syndicate should restate the historical data
submitted in the first reporting date after the RITC to reflect the best estimate claims provisions transferred
out as a result of the RITC while the accepting syndicate should allocate the accepted best estimate claims
provisions amount to the respective underwriting/accident year. For example, in the case of RITC as at 31
December 2014, the ceding syndicate should submit full claims information (best estimate claims provisions)
for the reporting year 2014, but when making the submission for the following reporting year (2015), the
historical data should be adjusted to remove the best estimate of claims provisions amount transferred out as
at 31 December 2014. The accepting syndicate should include the best estimate claims provisions amount
received as a result of the RITC, in the 2015 reporting year submission and the amount as at 31 December
2015 should be allocated to the respective underwriting/accident year.
This form should be reported for each Solvency II line of business, but direct and accepted proportional
reinsurance should be reported together.
Currency: There is a materiality threshold applicable in determining the number of currencies required to be
reported. However, this materiality applies at the Lloyd’s level and hence the following ‘six plus one’
currencies have been determined; USD, GBP, EUR, CAD, AUD, JPY and OTHER. Reporting is required
based on the original currencies but converted to GBP using the year end closing rate.
Gross Undiscounted Best Estimate Claims Provisions: This is the best estimate for claims provision
relating to claims events that occurred before or at the valuation date irrespective of whether the claims
arising from these events have been reported or not. The amounts included in the triangles should be
undiscounted while the amounts shown in the “year end” column should be discounted.
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