TP (L) – F3
ITEM
General Comment
CELL
NUMBER(S)
N/A
Product
denomination
A1
Ring fenced fund
(ID of fund or Not
Ring-fenced)
A3
Product still
commercialized?
Type of product
A4
A5
DEFINITION
EXAMPLE
PURPOSE
Template should only be filled for direct business
(reinsurance accepted in treaty by treaty, not
product by product)
This template excludes health SLT products
(although valued like life products, they do not
share same characteristics, such as surrender value
for instance)
N/A
Understand life business, in a product by
product approach which enables to identify
characteristics that cannot be understood
properly at LoB level
Granular information enables to have access to
detailed data, with great flexibility to suit
various needs
Main categories of data :
-identification and classification
-stocks and movements
-technical provisions
-Valuation basis
Commercial name of product (undertaking-specific)
If same product has different characteristics
according to following fields (ex: guarantees with
different risks, different commercialization dates,
etc. => see below), it should be presented in
separate lines (but need to make sure that the
denomination is the same)
Same as Assets-D1 (cell A2). Applicable to assets
held in ring-fenced (or internal) funds. See CEIOPS
L2 Advice on ring-fenced funds.
Enables reconciliation with assets held in ring
fenced funds (Assets-D1)
Specify if product is still sold, or if it is just in run-off
Pensionator,
Gain 4 Life
Identify products, and enable reconciliation with
commercial denomination
Undertakingspecific code
or “NO” if no
ring-fenced
fund
Yes / No
General qualitative description of the product type
=> need to provide a closed list?
Variable
annuity, one-
Will identify assets held in ring-fenced (or
internal) funds, that are not freely disposable
and that correspond to specific SCR & OF
calculations
+ reconcile with assets-D1
Clarify if product is still sold as a new contratct
or not
Provide an overall description of the product
TP (L) – F3
ITEM
CELL
NUMBER(S)
Product
classification ID
A6
Type of premium
A7
Currency
A8
DEFINITION
Harmonized code (consistent with CEIOPS L2 advice
on Segmentation):
1/ 1st letter = major LoB (with-profit (P), unit-linked
(U), other life (O) or reinsurance accepted (R))
2/ 2nd letter = main risk (used for LoB segmentation)
=> death (D), survival (S), disability/morbidity (I),
savings contracts (E);
“other” include products that have different main
risk drivers 3/ 3rd letter = type of contact => single
life (S), joint life (J), collective (C), other (O)
Possible list of choices :
-regular premium (R): premiums that policyholder
has to pay at pre-determined dates and amounts in
order to have the full effect of its guarantee
-single premium paid under a pre-determined
schedule (S) without pre-determined amounts, and
with additional guarantee according to amount paid
- single premium without any pre-determined
schedule (NS) with additional guarantee according
to amount paid
-single premium (NF) without possibility to pay an
additional premium in the future
-other (O) : any other case
Currency used to pay benefits
If more than one currency is used to pay benefits,
they should be indicated
EXAMPLE
year death
cover, etc.
PEC (collective
saving
contracts with
profits)
PURPOSE
Describe main characteristics of products, and
enable reconciliation with TP-E1
R/S/NS/NF/O
Enables to identify the type of future cash inflows that can be expected from this product,
and the impact on guarantees
EUR, GBP, SEK,
USD (ISO 4217
Code)
EUR/GBP/DKK
e.g. if three
are used
Necessary to assess currency risk, and also
discount rate (different for each currency),
which are related to currency of benefits paid
(not currency of premiums)
TP (L) – F3
ITEM
Number of insured
persons at the end
of the year
CELL
NUMBER(S)
A9
DEFINITION
Insured persons are the persons which represent
the insurance risk, i.e. :
- not the policyholder, for instance with collective
contracts with many insured persons (e.g.
employees) for a given policyholder (e.g. employer)
- not the beneficiary, for instance with contracts
covering death risk where the beneficiary (e.g.
children) receive money in case the insured person
(e.g. parent) dies
EXAMPLE
PURPOSE
Necessary to compare to new insured persons
or exits, and also eg to mortality rates
Open issue: treatment of savings contracts?
Number of new
insured persons
during year
Amount of
premiums written
during the year
Amount of
surrenders
Total amount of
claims paid during
year
Technical
provisions
Incl. cost of
options and
guarantees
Incl. Best Estimate
for discretionary
benefits
A10
New insured persons during year (this is for all new
contracts)
Assess origins of movements in the number of
insured persons (in number)
A15
Premium written on all policies (new or existing)
Possible reconciliation with Result Analysis
templates
Claims paid due to surrender (full or partial) by
policyholders
Claims paid during year Possible reconciliation with
Result Analysis templates
Assess movements in contracts (in amount), and
compare with evolution of TP (along with
claims)
Assess assumptions used (surrender rate)
A18
A20
A21
A21a
A22
Reconciliation of total with BS-C1 and TP-F1 (along
with cell A6, which enables classification by LoB)
Valuation within Technical Provisions of embedded
options and guarantees
This should be calculated only when applicable, i.e.
where benefits are calculated product by product
(not the case in all markets)
Assess amount of claims paid during year
(comparison with premiums, TP, surrenders,
etc.)
Assess importance of each product in terms of
technical provisions
Assess impact of options and guarantees within
TP
Assess impact of discretionary benefits within
TP
TP (L) – F3
ITEM
CELL
NUMBER(S)
DEFINITION
EXAMPLE
PURPOSE
Incl. best estimate
of future
premiums
Incl. Best Estimate
for future
expenses
Value of benefit
(lump sum
assured)
A23
Same definition of FDB as in TP-F1
Same definition of FP as in TP-F1
Reconciliation with TP-F1 (line BD)
A23a
Valuation of BE for future expenses
Compare to actual expenses and assess the
adequacy of TPs
A24
Identify type of benefits, and amounts with
maximum possible benefit to be paid
Value of benefit
(annual amount of
annuities)
A25
Surrender value
A26
Amount of lump sums to be paid in case of
occurrence of all events triggering lump sums
(death, disability, etc.), i.e. sum of all benefits
defined in the product over all policies included in
the row;
In order to be comparable with technical provisions,
figure should include amounts related to future
premiums included in BE calculation;
If product has both lump sum and annuity
guarantees, they should be unbundled, with each
being probability-weighted in case policyholder has
an option between both
Total amount of annuities (during year and in future
– should be discounted for future) to be paid in case
of occurrence of all events triggering annuities
(death, disability, etc.);
Inclusion of future premiums (see above)
In case of contract with both lump sum and annuity
guarantees, see above
Same definition as TP-F1
Reconciliation of total with TP-F1 (total of line I)
Paid-up value
A27
Paid-up value, as mentioned in art. 185 (3) (f) of the
directive, net of taxes
Assess impact of future premiums within TP
Identify type of benefits, and amounts
(maximum possible benefit), because different
risks (longevity and interest rate risk in case of
annuity)
Compare Technical Provisions to surrender
value due under contractual options (guarantee
to policyholders)
Compare Technical Provisions to paid-up value
due under contractual options (guarantee to
TP (L) – F3
ITEM
CELL
NUMBER(S)
Annualized
technical rate
(over average
duration of
guarantee)
A30
Return rate based
on a given index
A32
Actual rate of
return (during
current year)
A33
Different table
used for pricing
and BE ? (Y/N)
A35
Table used for BE
A34
DEFINITION
EXAMPLE
Technical rate is rate used for pricing (i.e.
guaranteed rate, independent of return on assets);
ex : 100 of premium today at 4,5% technical rate
during 6 years will lead to guaranteed amount of
100*1,045^6 in 6 years => different from return rate
(might be higher than technical rate, depending on
performance of assets) and from calculation of
discount rate used for BE
Technical rate is not based on an index
Here, technical rate is annualized over average
duration of guarantee
Indicate if return rate is based on a given index and,
if yes, which index
3 % during 1st
year and 0 %
during 2nd and
3rd year will
lead to
annualized
technical rate
of around 1 %
over 3 years
Rate of return actually provided to policyholder
(may be higher than guaranteed rate, for instance if
good performance over last year or if use of
discretionary benefits reserves)
Specify whether table (mortality, disability or other)
used for pricing is different from that of BE (see
below)
4%
Yes / No
Assess differences between BE and pricing
Mortality or disability or other table used for
valuation of BE : either commonly agreed name, or
formula if composition of tables, or name of
undertaking-specific table (if possible with
description)
Have a separate line for each table used, if different
tables are used for different generations of same
TH 00-02, UK
2005 mortality
table for
smokers, 80 %
of table XY
Assess valuation assumptions
NO; inflation;
50% DAX &
50% CAC 40
PURPOSE
policyholders)
Assess extend of guarantee granted to
policyholder, and risk related to error in pricing
+ compare with discount rate curve used for BE
calculation
Assess return rate (on top of technical rate)
which is not related to investment performance
of undertaking, and can lead to gaps between
actual performance and guaranteed rate
Know performance of products over current
year, and compare with guaranteed rates
TP (L) – F3
ITEM
CELL
NUMBER(S)
Surrender rate
used for BE
Discount rate:
used of illiquidity
premium?
A35a
Use of financial
instrument for
replication? (Y/N)
A41
A36
DEFINITION
guarantee
Surrender rate used for valuation of BE
Specify iliquidity premium used for discount rate of
TP : 50 % / 75 % / 100 % (according to latest
discussions)
Possible reconciliation with TP-F1 (line G)
State whether the product is considered replicable
by a financial instrument (i.e. hedgeable => TP
calculated as a whole) : closed question (Yes/No)
EXAMPLE
PURPOSE
Rate (3 % per
year) or curve
50 % / 75 % /
100 %
Assess assumptions on surrender (compare to
actual amount of surrenders in A18)
Assess whether TP is calculated using different
method of discounting from risk-free rate, with
use of liquidity premium (related to ability to
cash in the policy or not)
Know whether product is replicated =>
supervisors will then be able to require ad hoc
data on the financial instrument used and their
market quotation (need for a “deep, liquid and
transparent market”)
Yes/No