On Jul. 16, BEL CB issued a circular on insurer liquidity risk reporting.
BEL CB published Circular NBB_2024_11 on liquidity risk reporting, in compliance with Article 312 of Act of Mar. 13, 2016 on status and supervision of (re)insurance firms.
Document dated Jul. 16, 2024, received from BEL CB Jul. 17, summarized Jul. 22.
Circular Application
Addressed to all insurance and reinsurance undertakings falling in scope of Act of Mar. 13, 2016, with exception of those referred to in Articles 275, 276 or 295 of the Act.
A derogation is granted for tables 1 and 2, re flows and inventories, where: total Solvency II assets are less than €3 billion; company has not used derivatives for at least a year; and company has not used repo and securities lending for at least a year.
And table 3, which is specific to life insurance, does not apply to non-life companies.
Content
Circular regulates collection of data used to monitor the liquidity risk incurred by (re)insurance companies under Article 312 of the Act of March 13, 2016.
BEL CB wants to receive more information in order to gain comprehensive, integrated view of liquidity risk of insurance companies, new circular replaces previous one.
The supplementary prudential reporting now includes the following elements.
Outgoing cash flows, including distinction between (partial) surrenders and maturities, deaths etc. of insurance portfolios, to be provided for previous 3 and next 3 months.
Liquidity sensitivity of life technical reserves, excludes health insurance and branch 23.
The reporting tables are included in the appendix to the circular, data to be transferred electronically via BEL CB OneGate application, an exchange protocol is available.
Effectiveness
Reporting will begin on the basis of figures as at Dec. 31, 2024, reporting is quarterly, with data due no later than 5 weeks after the end of the previous quarter.
Regulators
BEL CB
Entity Types
Auditor; Ins
Reference
Rpl Cir NBB_2018_17, Cir NBB_2024_11, PR, 7/16/2024; Act of March 13, 2016
