3

The PRA’s expectations relating to instructions for templates S.14.01

3.1

To achieve consistency of reporting between firms the PRA sets out in this section how it expects firms to interpret the instructions to the template S.14.01.

3.2

Where firms show the number of contracts in C0040 and C0050 the PRA expects firms to count multiple policies issued as part of the same premium, identifiable increments and rider benefits as being a single contract. Where firms report unbundled products across multiple rows and using different Product ID codes the Implementing Technical Standards (ITS) instructions for C0040 and C0050 are directly applicable.

3.3

Deleted.

3.4

For products which are reported with a ‘collective’ classification in C0100 the number of contracts to be reported in C0040 and C0050 is the number of members of the scheme where this is known to the firm.

3.5

Where a product has been written in both single life and joint life form the product classification in C0100 is ‘5 – other’.

3.6

Where at least one version of a product is available to new policyholders it should be shown in C0130 as ‘1’. C0130 is ‘2’ for run-off which includes products only available as new business due to options. The PRA does not expect firms to report at a lower level of granularity than the product codes. This will avoid the need for firms to seek historic information on product brand names.

3.7

Where premiums cease for a regular premium product the contract C0140 should continue to be reported as ‘1 – Regular premiums’. Where a product allows a flexible combination of regular and single premiums C0140 should be reported as ‘4 - Other’.

3.8

The PRA expects that the first three characters of the homogeneous risk group in C0170 and C0230 will be one of the three digit codes in the Appendix. The PRA expects that the fourth character of the homogeneous risk group will be D for direct business or R for reinsurance accepted. Homogeneous risk groups should only cover a single product code as indicated by the first three characters in C0170 and C0230.

3.9

Firms should use an approximation to apportion between product codes where parts of the technical provisions are calculated for a combination of products (eg with-profits guarantee costs) or if there is uncertainty as to which product code applies.

3.10

The PRA does not expect that the guidance in this SS on the reporting of homogeneous risk groups would impact the calculation of the Transitional Measures on Technical Provisions.