Question ID: 1491
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 134
Status: Final
Date of submission: 15 Jun 2018
Question
§134(4) states that for recession risk the basis for calculation is "the premiums earned by the insurance or reinsurance undertaking....".
Usually, it is clearly indicated whether premiums are gross premiums (before deduction of ceded premiums) or net premums (after such deduction).
Could you please clarify which premiums should be taken into account?
EIOPA answer
In Article 134 (4) of Commission Delegated Regulation (EU) 2015/35, the wording "…without deduction of the amounts recoverable from reinsurance contracts and special purpose vehicles" refers to the subsequent "100% of the premiums earned by the insurance or reinsurance undertaking …" and not to the preceding "instantaneous loss".
Therefore the reference in this provision is to gross premiums.