Regulatory Alerts2015-12-03
Added · Updated
Set-off against technical provisions by healthcare insurers
Healthcare insurers must include receivables from or liabilities to the Healthcare Insurance Fund directly in the best estimate of the provision for outstanding claims, rather than reporting them separately as reinsurance. Conversely, setting off advance funding for healthcare providers against the provision for claims is prohibited under Solvency II as it would distort the solvency capital requirement. Insurers may avoid calculating solvency capital for counterparty default risk related to advance funding if they implement adequate monitoring of work in progress using tools such as the WIP Grouper of DBC Maintenance.