Follows BEL CB Feb. 2022 issued circular on further life data collection, see #128405.
Document dated Apr. 14, 2024, received from BEL CB May 15, summarized on May 20.
Circular Summary
BEL CB published Circular NBB_2024_08, updating previous Circular NBB_2022_01, on collecting additional data from insurers operating in life and work accident branches.
In light of the macroeconomic context, the life insurance industry now offers higher technical interest rates for new policies, and there is therefore an in-built risk that interest rates are falling again in the medium term, and can lead to interest rate risk.
In order to estimate impact of interest rate risk on solvency, BEL CB, in its capacity as prudential supervisor, is already currently requesting a report on interest rate risks.
This information allows BEL CB to, at the same time, analyse the various asset-liability management of the insurance sector, to assess further and wider risk issues in sector.
To get a more detailed view of the impact of interest rate risk on profitability, BEL CB must have additional information and in the past has asked for supplementary data.
Part of this analysis is now to be replaced by additional data on the new policy basis. covering additional provision to provide past three years data, actuarial analysis of the actual result, and an overview of new production and technical interest rates offered.
Reporting must be annual and data must be transmitted by Jun. 30 of year, at latest, of accounting year to which they relate, with reporting tables provided in the appendix.
Insurers will be able to either manually enter data or automate reporting using the generated files in CSV or XML format, with exchange protocol set on BEL CB website.
Scope
Covers all insurers subject to the law of Mar. 13, 2016 on status and supervision of insurance or reinsurance companies operating in the life and work accident branches.
The circular does not apply to insurers referred to in Article 275, 276 or 294 of the law.
Effectiveness
This circular shall apply from Jan. 1, 2025, and a first report is due on Jun. 30, 2025 based on figures at the end of the 2024 financial year, as set out within the circular.
