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Non-Life Reinsurance Premium Eligibility

Calculate the Net Premium Basis for Article 116 instantly.

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Net Premium Basis for Article 116

€42 000 010

1Step 1

Total Excluded Reinsurance Premiums

Total Excluded Reinsurance Premiums=Excluded Reinsurance Premiums for Non-Insurance Events+Excluded Reinsurance Premiums for Settled Claims+Excluded Reinsurance Premiums for Non-Compliant Contracts\textit{Total Excluded Reinsurance Premiums} = \textit{Excluded Reinsurance Premiums for Non-Insurance Events} + \textit{Excluded Reinsurance Premiums for Settled Claims} + \textit{Excluded Reinsurance Premiums for Non-Compliant Contracts}
2Step 2

Admissible Reinsurance Premiums

Admissible Reinsurance Premiums=max⁡(0,Total Reinsurance Premiums−Total Excluded Reinsurance Premiums)\textit{Admissible Reinsurance Premiums} = \max(0, \textit{Total Reinsurance Premiums} - \textit{Total Excluded Reinsurance Premiums})
3Step 3

Non-Deductible Reinsurance Premiums

Non-Deductible Reinsurance Premiums=non_deductible_reinsurance_premiums⁡(Total Reinsurance Premiums,Admissible Reinsurance Premiums)\textit{Non-Deductible Reinsurance Premiums} = \operatorname{non\_deductible\_reinsurance\_premiums}\left(\textit{Total Reinsurance Premiums}, \textit{Admissible Reinsurance Premiums}\right)
4Step 4

Net Premium Basis for Article 116

Net Premium Basis for Article 116=net_premiums_after_reinsurance⁡(Gross Premium Basis Before Reinsurance,Admissible Reinsurance Premiums)\textit{Net Premium Basis for Article 116} = \operatorname{net\_premiums\_after\_reinsurance}\left(\textit{Gross Premium Basis Before Reinsurance}, \textit{Admissible Reinsurance Premiums}\right)

Understand the Non-Life Reinsurance Premium Eligibility

Overview

This calculator implements the Non-Life Reinsurance Premium Eligibility check within the undertaking's risk-mitigation framework.[1] The eligibility-check is defined as the technical driver responsible for ensuring that the undertaking's reinsurance premiums and recoveries meet the regulatory criteria for capital-relief.

Input Terms

  • Reinsurance Premium: The amount paid to the reinsurer for the risk-transfer.[2]
  • Risk Transfer Ratio: The quantification of the economic-risk transferred to the reinsurer relative to the premium-paid.[1]
  • Counterparty Credit Step (CQS): The credit quality of the reinsurer.[3]

Technical Rationale

Article 209 recognizes reinsurance mitigation only where the arrangement produces effective risk transfer. The eligibility check protects the SCR and technical-provisions view from recognizing capital relief that is not supported by the contract economics.

Risk transfer is the reason reinsurance can reduce net technical provisions and underwriting risk. Where contract terms do not demonstrate significant transfer, recognizing the mitigation would overstate the undertaking's solvency position.[4]

This page keeps the eligibility gate separate from the net technical-provisions and S.30.01.01 reporting views so excluded mitigation remains visible rather than being silently netted.

Important Notes

  • Basis Risk: The eligibility-check must account for any potential "basis risk" where the reinsurance coverage does not perfectly match the underlying insurance obligations.
  • Reporting: Reinsurance eligibility evidence supports non-life reinsurance-program and recoverables review, including S.30.01.01 where facultative-cover reporting is in scope; it is not a standalone SCR component.[4]

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 209 (Qualitative criteria for risk mitigation techniques) - EIOPA
  2. Delegated Regulation (EU) 2015/35 - Art. 1 (Definitions) - EIOPA
  3. Delegated Regulation (EU) 2015/35 - Art. 200 (Type 1 exposures) - EIOPA
  4. Commission Implementing Regulation (EU) 2023/894 - QRT S.30.01.01 (Facultative covers - basic data) - EUR-Lex

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.