EIOPA has launched a European wide comparative study on non-life underwriting risk in internal models.
The objectives and priorities of the study are:
- Fair view: The Non-Life Underwriting Risk Comparative Study 2020 (NLCS 2020) aims for a fair evaluation of non-life underwriting risk within internal models at a European level and their development over a five-year time horizon.
- Risk profile decomposition: Understanding relative positioning of capital positions on different granularities is aiding an understanding of dominating factors. A technically sound framework independent of the underlying methodologies will explore the modelled risk profile and actual business development in order to identify and analyse peer group behaviour.
- Consistency: Undertakings also taking part in the comparative study on diversification must ensure a consistent submission of information as the information request has been developed jointly for both studies.
The deadline for insurance undertakings to submit results to their national supervisory authority is 15 September 2021.
The deadline for national supervisory authorities to submit the information to EIOPA is 01 October 2021.