Solvency II - Lloyd's

The weighted average age of the beneficiaries: This is the age of beneficiaries calculated on a weighted
average for total portfolio. The beneficiary is the person to whom the payments are reverting to, following the
occurrence of a claim (that affects the insured person) which originates this type of payment.
2.20 QMC430 (Non-life)/QMC431 (Life): Activity by country
Purpose of form: This form describes activity carried out abroad, as required in Article 159 of the Framework
Directive, to provide an overview of geographical repartition of activity (i.e. premiums written, claims paid and
commission), also covering material non-EEA jurisdictions (operating under branch)..
This form is required for all reporting years combined and will be required on an annual basis.
Information should be reported by country; the localisation of business by country should follow the criteria
set out in Article 159 i.e. should depend on where the business is underwritten.
Article 159 states, in its current version:
“Every insurance undertaking shall inform the competent supervisory authority of its home Member State,
separately in respect of transactions carried out under the right of establishment and those carried out under
the freedom to provide services, of the amount of the premiums, claims and commissions, without deduction
of reinsurance, by Member State and as follows:
(a) for non-life insurance, by group of classes as set out in Annex V;
(b) for life insurance, by each of classes I to IX, as set out in Annex II.
As regards class 10 in Part A of Annex I, not including carrier's liability, the undertaking concerned shall also
inform that supervisory authority of the frequency and average cost of claims.”
Information by country (EEA member state): Information provided for business carried out in each EEA
member state, as prescribed in Article 159. There is no materiality threshold, so any business carried out in
an EEA member state must be reported.
Other than the United Kingdom, ie the home country, there are 29 EEA member states.
Branch: Information provided for business carried out in each EEA member state by branch (freedom of
establishment). Article 145 requires that, any permanent presence of an undertaking in the territory of a
member state shall be treated in the same way as a branch, even where that presence does not take the
form of a branch, but consists merely of an office managed by the own staff of the undertaking or by a person
who is independent but has permanent authority to act for the undertaking as an agency would. In the case of
Lloyd’s this includes business that is underwritten by a coverholder in a EEA member state where Lloyd’s has
a representative office and where the coverholder may enter into contracts of insurance without first
consulting the managing agent that granted the binding authority.
FPS: Freedom to Provide Services. This is where the insurance contract is made not in the home country or
under freedom of establishment. It covers open market business (with or without involvement of a local
intermediary) and business that is written under any binding authority where the local coverholder does not
have authority to enter into contracts of insurance without first consulting the managing agent that granted
the binding authority.
Information by country (not an EEA member state): This is information provided for business carried out
in non-EEA jurisdictions, under a materiality threshold. Information is required to be reported for all business
carried out in non-EEA jurisdictions that account for more than 5% or € 25m of premiums, or 1% or €25m of
technical provisions or specific risk profile). This materiality applies at Lloyd’s level and for Lloyd’s to meet
this materiality threshold, syndicates will need to report all non-life business written in the following four non-
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