Question ID: 1681
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 127
Status: Final
Date of submission: 05 Oct 2018
Question
Article 127 contains the catastrophe risk charge calculations for non-proportional property reinsurance wherein geographical diversification ("DIV") has been set out in Annex III. However point (5) of Annex III states that the factor for geographical diversification shall be equal to 1 (i.e. DIV =1) including for segment "12 Non-proportional property reinsurance". Please refer to worksheet "Query1".
Can you please clarify whether this is the intention of this Article 127 "Sub-module for catastrophe risk of non-proportional property reinsurance"?
EIOPA answer
In accordance with Annex III paragraph 5 and Annex II of Commission Delegated Regulation (EU) 2015/35 the factor DIVnpproperty referred to in Article 127(2) should be set to one.