The Supervisory Statement (SS) shown on this page is effective from 30/03/2018. Past versions of this SS can be found here.

https://www.bankofengland.co.uk/prudential-regulation/publication/2015/solvency2-life-insurance-product-reporting-codes-ss

Related links

Reporting
PS6/18 - "Responses to CP18/17 Occasional Consultation Paper – Chapters 2 to 6, 9 and 10" https://www.bankofengland.co.uk/prudential-regulation/publication/2018/responses-to-cp-18-17-chapters-2-to-6-9-and-10

Chapters

  • 1 Introduction
  • 2 Codes for firms that carry out life insurance business or have annuities stemming from non-life insurance business
  • 3 The PRA’s expectations relating to instructions for templates S.14.01
  • Appendix

1

Introduction

1.1

This supervisory statement is addressed to all UK insurance firms within the scope of Solvency II, and to the Society of Lloyd’s, that carry out life insurance business or have annuities stemming from non-life insurance business. Amendments to this statement since its publication in August 2015 are set out in the Annex.

1.2

The Solvency II supervisory reporting Implementing Technical Standards expects firms to use a defined list of product codes where attributed by the supervisory authority in the instructions to the template S.14.01.01 Life Obligations Analysis (S.14.01).

2

Codes for firms that carry out life insurance business or have annuities stemming from non-life insurance business

2.1

This supervisory statement sets out how the Prudential Regulation Authority (PRA) expects firms to submit information in annual reporting QRT S.14.01 using life product reporting codes. The Appendix lists the codes which the PRA expects firms to use.

2.2

In these product codes the third digit of the code is used to distinguish varieties of the same product. This separates conventional and unitised with-profit, unit-linked and index-linked as well as retaining data for industrial branch business.

2.3

Miscellaneous codes have only been assigned for protection business where there are minor products that do not fit into the named codes. A firm may use code 624 (miscellaneous protection non-profit) for any non-profit protection business if the amount of that business is not material. For the other main categories the product codes are intended to be sufficiently generic to cover all the products within that main category.

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.

Appendix

List of life insurance product reporting codes

This appendix sets out how the PRA expects firms to derive the data item ‘product ID code’ C0010 in template S.14.01 as a 3 character string.

PRA Solvency II product codes Description
Savings and investments
100 Whole of life OB CWP
101 Whole of life OB UWP
102 Whole of life OB UL
104 Whole of life OB NP
105  Whole of life IB CWP
106 
Whole of life IB NP
111 
Single premium bond UWP
112 
Single premium bond UL
113 
Single premium bond IL 
114 
Single premium bond NP
120 
Endowment OB CWP
121 
Endowment OB UWP
122 
Endowment OB UL
124 
Endowment OB NP
125 
Endowment IB CWP
126 
Endowment IB NP
131 
Investment only reinsurance UWP
132 
Investment only reinsurance UL
   
Individual pensions
 
200 Individual defined contribution pensions CWP
201 
Individual defined contribution pensions UWP
202 
Individual defined contribution pensions UL 
204 
Individual defined contribution pensions NP
210 
Workplace defined contribution pensions CWP
211 
Workplace defined contribution pensions UWP
212 
Workplace defined contribution pensions UL
214 
Workplace defined contribution pensions NP
221 
Income drawdown UWP
222 
Income drawdown UL
224 
Income drawdown NP
231 
Individual pensions investment only reinsurance UWP
232
Individual pensions investment only reinsurance UL
   
Corporate pensions
 
300 
Corporate defined benefit pensions CWP
301 
Corporate defined benefit pensions UWP
302 
Corporate defined benefit pensions UL
304 
Corporate defined benefit pensions NP
310 
Corporate defined contribution pensions WP
311 
Corporate defined contribution pensions UWP
312 
Corporate defined contribution pensions UL
314 
Corporate defined contribution pensions NP
321 
Corporate pensions investment only reinsurance UWP
322 
Corporate pensions investment only reinsurance UL 
   
Protection
 
404
Level term regular premium
414 
Level term single premium
424 
Decreasing term regular premium 
434 
Decreasing term single premium
444 
Accelerated critical illness (guaranteed premiums)
454 
Accelerated critical illness (reviewable premiums)
464 
Stand-alone critical illness (guaranteed premiums)
474 
Stand-alone critical illness (reviewable premiums)
480 
Income protection CWP
481 
Income protection Holloway accounts UWP
494 
Income protection (guaranteed premiums)
504
Income protection (reviewable premiums)
514 
Income protection single premium
524 
Income protection claims in payment
534 
Group life
544 
Group death in service dependants' annuities
554 
Collective life
564 
Group income protection
574 
Group income protection claims in payment
584 
Group critical illness
594 
Risk premium mortality reinsurance
604 
Risk premium critical illness reinsurance 
614 
Risk premium income protection reinsurance
620 
Miscellaneous protection CWP 
621 
Miscellaneous protection UWP
622 
Miscellaneous protection UL
624 
Miscellaneous protection NP
   
Annuities  
700 
Purchased life annuity WP
704
Purchased life annuity NP
710 
Individual deferred annuity WP
714 
Individual deferred annuity NP
720 
Individual pension annuity WP
722 
Individual pension annuity UL
724 
Individual pension annuity NP
734 
Individual enhanced pension annuity NP
740 
Bulk purchase deferred annuity WP
744 
Bulk purchase deferred annuity NP
754 
Bulk purchase pension annuity NP
764 
Purchased temporary annuity NP
774 
Pension temporary annuity NP 
784 
Annuity stemming from non-life
794  
Longevity swap accepted

Notes on product categories

Whole life and endowment – regular premium business only – includes policies made ‘paid-up’ – excludes single premium bonds which are technically whole of life.

Single premium bond – includes ‘investment bond’ and ‘with-profits bond’.

Individual defined contribution pensions – pensions savings before retirement, excludes deferred annuity buyouts, but contract may be written as deferred annuity with-profits, endowment with-profits, UWP or UL. Individual means there is no employer involvement.

Workplace defined contribution pensions – covers ‘group pensions’ where the group is the employer and the insurer has a separate record for each employee covered, which may include employer contributions. The firm calculates liabilities at member level.

Corporate pensions – covers trust based pension arrangements where the insurer does not hold separate records for individual employees. The insurer normally just provides investment services, and the records of benefits are maintained by the trustees or another party. The firm calculates liabilities at scheme level.

Miscellaneous protection – these categories are for types of protection which do not fit within the named protection categories, e.g. long term care.

Bulk purchase annuity – this is for annuity liabilities arising from occupational pension schemes including where members hold individual policies after winding up of the scheme.

All reinsurance refers to reinsurance accepted. Reinsurance ceded is not reported in S.14.01.

Abbreviations

OB Ordinary branch: in the past this term was required to distinguish OB and IB policies.
IB Industrial branch: business sold in the past where premiums were collected door to door. The policies are now either paid up or premiums are collected by direct debit.
WP With-profits: a contract of long-term insurance which provides benefits through eligibility to participate in discretionary distributions based on profits arising from the firm's business or from a particular part of the firm’s business
CWP   Conventional with-profits: the traditional style of with-profits, where the policy specifies the regular premium payable and the initial guaranteed benefit, to which reversionary (annual bonuses) are added.
UWP   Unitised with-profits (includes accumulating with-profits): the newer style of with-profits, where each premium is invested in units or to an account at the face value of the amount invested. This amount grows with ‘bonus’ and any further premiums.
UL     Unit-linked: the same as the legal term ‘property linked’ in the PRA annual returns.
IL Index-linked: includes policies linked to a stock market index or the value of specific securities. It excludes RPI / CPI linked policies.
NP Non-profit: all policies covered by the ‘Other’ Solvency II line of business and including life health business.