D.221 / Statistics of Direct Life Insurance Activity in Belgium and Abroad

Statistics of Direct Life Insurance Activity in Belgium and Abroad Brussels, October 25, 2002 COMMUNICATION No. D. 221 Subject: Statistics of Direct Life Insurance Activity in Belgium and Abroad.

I. Introduction
Given the important role that Dependency and Guaranteed Income insurance will be called upon to play in the medium term, the Office for the Control of Insurance considers it necessary to modify the statistics in order to collect data regarding these guarantees.

Since this type of insurance can be either a Non-Life insurance product or a supplementary product to Life insurance, it follows that both Life and Non-Life statistics must be reviewed to have a view of the relevant market.

Furthermore, since Collection C described in communication D.159 does not allow obtaining the data necessary for the control of life insurance linked to earmarked funds nor to life insurance linked to investment funds, it was necessary to split this Collection C into two collections, C1 and C2, and to request the specific elements necessary to carry out the control mission assigned to the Office.

Companies are requested to adapt their internal organization and information systems so that they can collect the new data starting from the 2003 fiscal year (reporting 2004) according to the model described below.

II. Tables regarding profitability
The "supplementary insurance" column of branches 21 and 23, both in Individual and Group, of the Rentability_1 Collection as defined in communication D.159 of May 26, 1997, is split into four columns: "C.R.I.", "Dependency", "Others", and "Total".

The column numbering has been revised according to the following structure: branch number, profitability category within the branch, insurance product of the profitability category of the branch.

Thus, the numbering 23.IV.2 refers to the second product of the profitability category IV of branch 23.

The column titles and their numbering are reproduced in the annex.

Despite this modification at the column level, the number of profitability categories remains unchanged, since supplementary insurance continues to form a single and unique profitability category.

The insurance product categories to be taken into account for the control of profitability correspond to the following columns:

21.I. Branch 21, Individual excluding AR 1969, Principal

21.II. Branch 21, Individual excluding AR 1969, Supplementary 21.III. Branch 21, Group excluding AR 1969, Principal 21.IV. Branch 21, Group excluding AR 1969, Supplementary 21.V. Branch 21, Individual AR 1969 21.VI. Branch 21, Group AR 1969 22.I. Branch 22 23.I. Branch 23, Individual, Principal 23.II. Branch 23, Individual, Supplementary 23.III. Branch 23, Group, Principal 23.IV. Branch 23, Group, Supplementary 24.I. Branch 24 25.I. Branch 25 26.I. Branch 26 27.I. Branch 27 28.I. Branch 28 29.I. Branch 29

The profitability of categories 21.I. to 21.VI. is assessed by aggregating, for each of them, the results of products not linked to earmarked funds with those linked to earmarked funds. The basic items remain, for their part, unchanged.

III. Supplementary tables concerning life insurance activity
Collection C has been split into two collections C1 and C2: the first concerns earmarked funds while the second concerns operations linked to investment funds.
The items of these collections have been thoroughly reworked in order to obtain the adequate information for the control of the operations in question and are not identical.

It should be noted that by "maximum annual management rate" of collections C1 and C2, one must understand the maximum inventory charge that the insurance company may contractually withdraw from earmarked funds or investment funds.

In collection C2, statistical statements regarding the state of investment funds, it is necessary to include the total holdings of these (sold and unsold parts of the investment fund).

New collections Hi (1 ≤ i ≤ 8) concerning supplementary insurance have been introduced with the aim of constructing loss development triangles.

Companies are invited to fill in at least lines X, X-1, and X-2 of these collections Hi for the 2003 fiscal year (reporting 2004), that is to say, they must at least fill in the data relating to occurrence years 2001, 2002, and 2003, this in order to allow the Office to draw a first analysis of the loss development triangles.

The President,
Willy P. LENAERTS.