Statistics of Direct Non-Life Insurance Operations in Belgium and Abroad

Statistics of Direct Non-Life Insurance Operations in Belgium and Abroad Brussels, October 25, 2002 COMMUNICATION N° D. 220 Subject: Statistics of Direct Non-Life Insurance Operations in Belgium and Abroad I. INTRODUCTION Following the amendment of the law of July 9, 1975, on the supervision of insurance undertakings, by the law of August 10, 2001, adapting accident at work insurance to European directives concerning direct insurance other than life insurance, the Insurance Supervisory Authority (Office de Contrôle des Assurances) now exercises prudential supervision over accident at work insurance operations of Belgian insurance undertakings and insurance undertakings from third countries whose registered office is located outside the European Economic Area. The data necessary for the supervision of accident at work insurance must therefore be included in the statistics concerning direct P&C insurance activities in Belgium and abroad. Consequently, "P&C" statistics will henceforth be referred to as "non-life" statistics. Furthermore, dependency insurance should be explicitly included in the statistics, given that this type of insurance will play an important role in the future. Finally, the Authority takes this opportunity to further subdivide transport insurance to obtain data for each insurance class. The introduction of all this data implies an adaptation of the statistics of direct non-life insurance operations in Belgium and abroad. Undertakings are invited to adapt their internal organization and IT system to be able to provide data for the accounting years 2003 (reporting 2004) and subsequent years according to the model described below. II. STATISTICS OF DIRECT NON-LIFE INSURANCE OPERATIONS IN BELGIUM A. Basic Statistics Additional columns related to accident at work insurance are inserted within class 01 Accidents. Accident at work insurance is subdivided into 2 product categories, namely accidents at work falling under the law of April 10, 1971, and those falling under the law of July 3, 1967; within each of these categories, professional risks and commuting risks products are isolated. Furthermore, within the framework of the law of April 10, 1971, a column separately includes the product category as well as the "domestic workers" product. In total, there are 3 new product categories and 5 new products. Dependency insurance is included either in class 01 Accidents or in class 02 Sickness, depending on the nature of the risk. Risks concerning both accidents and sickness are included in class 02 Sickness. This implies the addition of a new product category in each of these classes; this new category is subdivided into 2 products, namely individual and collective. In transport insurance, the "hull" product category is replaced by 3 product categories corresponding to insurance classes 04 Railway rolling stock hull, 05 Aircraft hull, 06 Marine hull; these categories also correspond to products. The "goods" product category, which corresponds to class 07 Goods in transit, is maintained. The "liability" product category is replaced by 4 product categories corresponding to insurance classes 10b Carrier's liability, 11 Aircraft liability, 12 Marine liability, and 13*Railway liability and other transport liability; these categories also correspond to 4 products. For the entire statistics, the number of product categories increases from 33 to 43 and the number of products from 93 to 107. The column numbering is modified as follows: class number, product category number, product number. Thus, numbering 03.II.2 refers to the 2nd product of product category II of class 03. The description of the columns and their new numbering is included in Annex 1 of this communication. This annex is designed as a conversion table where the new version appears below the currently in force version. The headings of the basic statistics remain unchanged. B. Supplementary Statistics by Year of Occurrence or Underwriting. Tables containing data by year of occurrence or underwriting must be completed for each added column, over a period of 10 years for accident at work insurance and 20 years for dependency and transport insurance. Although the new statistical scheme only comes into force from the 2003 financial year, undertakings will be required to include in these tables data concerning the years of occurrence or underwriting 2001, 2002, and 2003 related to the new products, to enable a first analysis of the evolution of claims burden. III. STATISTICS OF DIRECT NON-LIFE INSURANCE OPERATIONS ABROAD A. Basic Statistics The only modification at the column level consists of adding columns for each of the transport insurance classes, as is the case for direct non-life insurance operations in Belgium. The columns correspond to the insurance classes as follows: 1 2 3 4 5 6 7 8+9 10a 10b 11 12 13 14 15 16 17 18 total Accident at work insurance is included in class 1; dependency insurance can, depending on the nature of the risk, appear in both class 1 and class 2. A heading is added in class 10a Motor TPL excluding carrier's liability: the number of reported claims is requested, in addition to the number of insured vehicles. B. Supplementary Statistics by Year of Occurrence or Underwriting For each column added in transport insurance, tables containing data by year of occurrence or underwriting must be completed over a period of 20 years. IV. SUPPLEMENTARY STATISTICS FOR ACCIDENT AT WORK INSURANCE In accident at work insurance, headings 3.2.A and 3.2.Z "Provision for outstanding claims beginning and end of financial year" will be detailed in a separate table. In this way, the different elements of this provision - provision for outstanding claims, provision for provisional annuities, provision for definitive annuities, provision for prostheses, and supplementary provision - will appear separately. The same applies to heading 2.1. "Benefits". This heading will be subdivided as follows: indemnities, allowances, annuities, payments to the FAT, and redemptions. Furthermore, premiums subject to the ONSS must be mentioned in a separate heading, as well as the provision for definitive annuities related to accidents occurring before 1988. The model for this table is included in Annex 2 of this communication. This table will be included in Annex 5.00 of the "non life_normal" working collection for reporting to the Supervisory Authority. This data collection related to accident at work insurance by the Authority does not exclude the possibility that the Accident at Work Fund (Fonds des Accidents du Travail) may also request additional information within the framework of its activities. The President, Willy P. LENAERTS.