D.160 / Communication

OFFICE DE CONTROLE DES ASSURANCES

Brussels, 27 May 1997.

COMMUNICATION D. 160

Subject :	-	Statistics on direct "I.A.R.D." insurance operations abroad
	-	Statistics on "non-life" business accepted in reinsurance
	-	Statistics on "Equalization and Catastrophe Provision"
	-	Statistics I.A.R.D. "Eurostat"

I. INTRODUCTION

The practical implementation of ex-post profitability control by product or product group, as well as more precise control of technical provisions, has led to a restructuring of the statistics concerning direct "I.A.R.D." insurance operations in Belgium.

Following the introduction of the "home Member State" control principle, it is also necessary to establish statistics on direct "I.A.R.D." insurance operations abroad. Once this statistics system is established, the separate technical operating accounts will no longer need to be completed.

Furthermore, it is necessary to impose on Belgian companies and companies from third countries established in Belgium, which practice both direct insurance and reinsurance, a statistics system concerning their reinsurance operations.

A statistics system has also been developed concerning certain data related to the equalization and catastrophe provision that companies must communicate.

Finally, a complementary statistics system must also be provided to meet information requests from "Eurostat".

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Companies are requested to adapt their internal organization and IT systems in order to provide data relating to the 1998 and subsequent financial years, according to the model described below.

Unless otherwise stated, these statistics will be integrated into the automatic data collection system.

II. STATISTICS ON DIRECT "I.A.R.D." INSURANCE OPERATIONS ABROAD

Basic statistics and complementary statistics

The basic statistics and complementary statistics, referred to in points A and B below, must be completed as follows.

For each country of the European Economic Area (E.E.A.) in which it covers risks, the company must complete these statistics, on the one hand for its activities in that country via a branch and on the other hand for its activities in the form of freedom to provide services in that country, whether from its head office or from a branch established in another country.

The company must also complete these statistics for all its activities in all countries outside the European Economic Area.

The data appearing in these statistics are expressed in BEF. To this end, the data from the basic statistics and complementary statistics are converted at the same exchange rates as those used for the annual accounts.

A. Basic Statistics

• Items of the basic statistics

The items of the basic statistics are exactly identical to those appearing in the statistics on direct I.A.R.D. insurance operations in Belgium. These items must be filled in up to the level of the gross technical-financial balance S3 for each of the columns mentioned below, except for the "total" column, which must be completed up to the net technical-financial balance S4.

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• Columns of the basic statistics

The columns correspond to the following insurance branches and groups of branches:

1 2 3 4+5+6+7+11+12 8+9 10a 10b 13 14 15 16 17 18 total

B. Complementary Statistics

For these same columns, with the exception of the "total" column, it is necessary to establish a breakdown by accident year or underwriting year, over a period of 10 years (columns 1, 3, 8+9, 14, 15, 16 and 18) or 20 years (columns 2, 4+5+6+7+11+12, 10 a, 10b 13 and 17), of the following items:

• 2.1.+2.2 : Amount of benefits and external management costs
• 2.4. : Recovered technical charges
• 3.2.T.a. : Transferred claim provision received
• 3.2.T.b. : Transferred claim provision ceded
• 3.2.Z.1.+3.2.Z.2. : Claim provision
• 3.3.Z. : Technical charges to be recovered

In addition, the number of insured vehicles in branch 10a, Motor Vehicle Liability excluding carrier liability, must be mentioned.

Specific Statistics

In addition to the aforementioned statistics, the Office may request specific statistics from companies that carry on a relatively significant activity abroad. The relative importance is assessed company by company on the basis of various criteria such as the amount of premiums written, the level of technical provisions, the nature of the risks underwritten...

These statistics may consist of:

• a more detailed breakdown of the columns in question in point A;
• a separate statistics for any country in which a company carries on a relatively significant activity;
• separate statistics expressed in the currency of the country of risk or in the currency in which the claim provision is constituted.

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These specific statistics may be transmitted according to the company's own formats and will not be integrated into the automatic data collection system.

III. STATISTICS ON "NON-LIFE" BUSINESS ACCEPTED IN REINSURANCE.

Basic statistics and complementary statistics

The basic statistics and complementary statistics, referred to in points A and B below, must be established for all reinsurance activities of the company, including work accidents.

The data appearing in these statistics are expressed in BEF. To this end, the data from the basic statistics and complementary statistics are converted at the same exchange rates as those used for the annual accounts.

A. Basic Statistics

• Items of the basic statistics

The items of the basic statistics are exactly identical to those appearing in the statistics on direct I.A.R.D. insurance operations in Belgium. These items must be completed up to the level of the gross technical-financial balance S3 for each of the columns mentioned below, except for the "total" column, which must be completed up to the net technical-financial balance S4.

• Columns of the basic statistics

The columns correspond to the following insurance branches and groups of branches:

1+2 (including work accidents) 3+10a+10b 8+9+16 4+5+6+7+11+12 13 14+15 17+18 total

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B. Complementary Statistics

Two tables must be completed: one for accepted business subject to proportional reinsurance treaties, and the other for accepted business subject to non-proportional reinsurance treaties. For each of the columns, except the total column, these tables provide the breakdown by accident year or underwriting year, over a period of 10 years (columns 1+2, 8+9+16, 14+15 and 17+18) or 20 years (columns 4+5+6+7+11+12, 3+10a+10b and 13), of the following items:

• 2.1.+2.2 : Amount of benefits and external management costs
• 2.4. : Recovered technical charges
• 3.2.T.a. : Transferred claim provision received
• 3.2.T.b. : Transferred claim provision ceded
• 3.2.Z.1.+3.2.Z.2. : Claim provision
• 3.3.Z. : Technical charges to be recovered

Specific Statistics

In addition to the aforementioned statistics, the Office may request specific statistics from companies that carry on a relatively significant reinsurance activity. The relative importance is assessed company by company on the basis of various criteria such as the amount of premiums written, the level of technical provisions, the nature of the risks underwritten...

These statistics may consist of:

• a more detailed breakdown of the columns in question in point A;
• a separate statistics for any country in which a company carries on a relatively significant activity;
• separate statistics expressed in the currency of the country of risk or of the cedant country or in the currency in which the claim provision is constituted.

These specific statistics may be transmitted according to the company's own formats and will not be integrated into the automatic data collection system.

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IV. STATISTICS ON "EQUALIZATION AND CATASTROPHE PROVISION"

The data that companies must communicate for statistical purposes, in accordance with Communication D.151 regarding the equalization and catastrophe provision, will be requested according to the formats appearing in annexes 1 to 3 inclusive of this communication.

V. "EUROSTAT" STATISTICS

The new statistics developed for the needs of "Eurostat" are the subject of annexes 4 to 6 inclusive of this communication.

The President,

(Signature)

Willy P. LENAERTS

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Annex D.158 / 1

STATISTICS ON DIRECT "IARD" INSURANCE OPERATIONS IN BELGIUM (Amounts x 1,000 F.)

EQUALIZATION AND CATASTROPHE PROVISION

LABEL	RISKS
	1.1 storms, hail	1.2 floods	1.3 earthquakes, landslides and subsidence	1.4 crops	1.5 attacks and labor disputes	1.1 to 1.5	2 nuclear risks	3 Pollution liability	4 Product liability	5 Air and space risks	6 credit
Gross premiums written excluding reinsurance
Gross premiums earned excluding reinsurance
Net premiums earned excluding reinsurance
Gross claim charges
Net claim charges
Theoretical provision amount
Equalization provision at end of financial year

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Annex D.158 / 2

STATISTICS ON DIRECT "IARD" INSURANCE OPERATIONS ABROAD (Amounts x 1,000 F.)

EQUALIZATION AND CATASTROPHE PROVISION

LABEL	RISKS
	1.1 storms, hail	1.2 floods	1.3 earthquakes, landslides and subsidence	1.4 crops	1.5 attacks and labor disputes	1.1 to 1.5	2 nuclear risks	3 Pollution liability	4 Product liability	5 Air and space risks	6 credit
Gross premiums written excluding reinsurance
Gross premiums earned excluding reinsurance
Net premiums earned excluding reinsurance
Gross claim charges
Net claim charges
Theoretical provision amount
Equalization provision at end of financial year

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Annex D.158 / 3

STATISTICS ON "NON-LIFE" BUSINESS
ACCEPTED IN REINSURANCE (Amounts x 1,000 F.)

EQUALIZATION AND CATASTROPHE PROVISION

LABEL	RISKS
	1.1 storms, hail	1.2 floods	1.3 earthquakes, landslides and subsidence	1.4 crops	1.5 attacks and labor disputes	1.1 to 1.5	2 nuclear risks	3 Pollution liability	4 Product liability	5 Air and space risks	6 credit
Gross premiums written excluding reinsurance
Gross premiums earned excluding reinsurance
Net premiums earned excluding reinsurance
Gross claim charges
Net claim charges
Theoretical provision amount
Equalization provision at end of financial year

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Annex D.158 / 4

EUROSTAT

I.A.R.D. INSURANCE - DIRECT INSURANCE IN BELGIUM AND ABROAD (Amounts x 1,000 F.)

	Ceded premiums
Branch 01 - Accidents
Branch 02 - Sickness
Branch 03 - Land motor vehicle bodies
Branches 10 - Land motor vehicle liability and carrier liability
Branches 04, 05, 06, 07, 11, 12 - Transport
Branches 08, 09 - Fire and other property damage
Branch 13 - General liability
Branches 14, 15 - Credit and suretyship
Branch 16 - Miscellaneous pecuniary loss
Branch 17 - Legal protection
Branch 18 - Assistance

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Annex D.158 / 5

EUROSTAT

DIRECT BUSINESS IN BELGIUM AND ABROAD

Number of insured vehicles at end of accounting year
Branch 10a	Branch 03
Land motor vehicle liability	Land motor vehicle bodies

Number of insured persons at end of accounting year
Branch 02 - Sickness

Number of contracts in force at end of accounting year
Branch 01	Branches 08 and 09	Branch 13
Accidents	Fire and other property damage insurance	General liability insurance

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Annex D.158 / 6

EUROSTAT

I.A.R.D. BUSINESS - GEOGRAPHIC BREAKDOWN OF GROSS PREMIUMS WRITTEN BUSINESS ACCEPTED IN REINSURANCE (Amounts x 1,000 F.)

Origin of business (cedant country)
Belgium	Other EU Member States	Other EEA Member States other than EU	Third countries

DIRECT BUSINESS AND ACCEPTED I.A.R.D. BUSINESS - GEOGRAPHIC BREAKDOWN OF REINSURANCE Ceded PREMIUMS (Amounts x 1,000 F.)

Destination of business (reinsurer country)
Belgium	Other EU Member States	Other EEA Member States other than EU	Third countries