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 No. 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, concerning the control of insurance companies, by the Law of August 10, 2001, adapting work accident insurance to European directives concerning direct insurance other than life insurance, the Office of Insurance Control now exercises prudential supervision over work accident insurance operations of Belgian insurance companies and insurance companies from third countries whose registered office is located outside the European Economic Area. The data necessary for the control of work accident insurance must therefore be included in the statistics concerning direct non-life insurance activities in Belgium and abroad. Consequently, "non-life" statistics will henceforth be named "non-life" statistics.

Furthermore, it is necessary to explicitly display dependency insurance in the statistics, given that this type of insurance will play an important role in the future.

Finally, the Office takes this opportunity to further split transport insurance to obtain data for each of the insurance branches. The introduction of all this data implies an adaptation of the statistics of direct non-life insurance operations in Belgium and abroad.

Companies are invited to adapt their internal organization and information systems, in order to be able to provide data concerning 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
Complementary columns related to work accident insurance are inserted within branch 01 Accidents. Work accident insurance is split into 2 product categories, namely work accidents subject to the Law of April 10, 1971, and those subject to the Law of July 3, 1967; in each of these categories, professional risk products and risks on the way to work are isolated. In addition, under the Law of April 10, 1971, a column separately includes the product category as well as the "domestic staff" product. In total, there are 3 new product categories and 5 new products.

Dependency insurance is included either in branch 01 Accidents or in branch 02 Illness, depending on the nature of the risk. Risks concerning both accidents and illness are included in branch 02 Illness. This implies the addition of a new product category in each of these branches; this new category is split into 2 products, namely individual and collective.

In transport insurance, the product category "bodies" is replaced by 3 product categories corresponding to insurance branches 04 Railway material bodies, 05 Aircraft vehicle bodies, 06 Maritime vehicle bodies; these categories also correspond to products. The product category "goods," which corresponds to branch 07 Transported goods, is maintained. The product category "liability" is replaced by 4 product categories corresponding to insurance branches 10b Carrier liability, 11 Aircraft vehicle liability, 12 Maritime vehicle liability, and 13* Railway liability and other transport liability; these categories also correspond to 4 products.

For the entire statistic, 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: branch number, product category number, product number. Thus, the numbering 03.II.2 refers to the 2nd product of product category II of branch 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 in which the new version appears under the currently in force version.

The sections of the basic statistic remain unchanged.

B. Supplementary Statistics by Year of Occurrence or Underwriting.
The tables containing data by year of occurrence or underwriting must be completed for each of the added columns, over a period of 10 years for work accident insurance and 20 years for dependency and transport insurance.

Although the new statistical scheme only enters into force from the 2003 financial year, companies will be required to include in these tables data concerning the occurrence or underwriting years 2001, 2002, and 2003 and relating to the new products, in order to make possible a first analysis of the evolution of the claim burden.

III. STATISTICS OF DIRECT NON-LIFE INSURANCE OPERATIONS ABROAD

A. Basic Statistics
The only modification at the column level consists of the addition of columns for each of the transport insurance branches, as is the case for direct non-life insurance operations in Belgium. The columns correspond to the insurance branches as follows:
1 2 3 4 5 6 7 8+9 10a 10b 11 12 13 14 15 16 17 18 total

Work accident insurance is included in branch 1; dependency insurance may, depending on the nature of the risk, appear in either branch 1 or branch 2.

A section is added in branch 10a Motor vehicle liability excluding carrier liability: the number of declared 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, the tables containing data by year of occurrence or underwriting must be completed over a period of 20 years.

IV. SUPPLEMENTARY STATISTICS IN WORK ACCIDENT INSURANCE

In work accident insurance, sections 3.2.A and 3.2.Z "Provision for claims to be settled at the beginning and end of the financial year" will be detailed in a separate table. In this way, the different elements of this provision - provision for claims to be settled, provision for temporary annuities, provision for final annuities, provision for prostheses, and supplementary provision - will appear separately. The same applies to section 2.1 "Benefits." This section will be split as follows: indemnities, allowances, annuities, payments to the Work Accident Fund, and buybacks. In addition, premiums subject to the ONSS must be mentioned in a separate section, as well as the provision for final annuities relating to accidents occurring before 1988. The model of this table is included in Annex 2 of this communication. This table will be included in Annex 5.00 of the "non life_normal" reporting collection at the Office of Control.

This collection of data regarding work accident insurance by the Office does not exclude that the Work Accident Fund may also request additional information within the framework of its activities.

The President,
Willy P. LENAERTS.