Insurance company accounting regulation
|Title:||Regulation on the accounting of insurance companies|
|Short title:||Insurance company
|Scope:||Federal Republic of Germany|
|Issued on the basis of:||Section 330 Paragraphs 1, 3, 4 HGB|
|Legal matter:||Commercial law , accounting law|
|Original version from:||July 11, 1973
( BGBl. I p. 1209 )
|Entry into force on:||September 6, 1973|
|Last revision from:||November 8, 1994
( BGBl. I p. 3378 )
|Entry into force of the
new version on:
|November 19, 1994|
|Last change by:||
Art. 3 G of December 19, 2018
( Federal Law Gazette I p. 2672, 2688 )
|Effective date of the
|January 13, 2019
(Art. 7 G of December 19, 2018)
|Please note the note on the applicable legal version.|
The ordinance on the accounting of insurance companies (Insurance Company Accounting Ordinance - RechVersV) regulates the accounting of insurers in Germany in addition to the Commercial Code (HGB) . Compared to other companies, different forms of annual financial statements ("forms") are determined for insurers and details of the accounting and valuation rules for technical provisions are specified.
Authorization to issue ordinances, current version and source
The authorization for the ordinance is provided by German Commercial Code . The ordinance is to be issued by the Federal Ministry of Justice in agreement with the Federal Ministry of Finance and requires the consent of the Bundesrat . The current version of RechVersV was on 8 November 1994 ( Federal Law Gazette I, p. 3378 ) (Regulation justification in the Bundesrat printed matter BR 823/94 and BR 823/1/94), it was last amended by Regulation of 17 July 2015 ( Federal Law Gazette . I p. 1245 ).Paragraphs 3 and 4 of the
The RechVersV is divided into the following sections:
- scope of application
- Balance sheet and profit and loss account
- Regulations on individual items on the balance sheet
- Regulations on individual items in the profit and loss account
- Management report
- Group accounting
- Exemptions and simplifications for certain insurance companies
- Administrative offenses
- Final provisions
Appendix, forms, samples
Annex to § 29
Forms for the balance sheet and income statement
In forms , the classification scheme for balance sheet and income statement are:
- Form 1 for the balance sheet
- Form 2 for the profit and loss account of property and casualty insurance companies and reinsurance companies
- Form 3 for the profit and loss account of the life insurance companies , the pension and burial funds and health insurance companies
- Form 4 for the profit and loss account of the consolidated financial statements and in certain special cases for insurance companies
The balance sheet and the income statement of insurance companies are structured according to the net principle: The shares for the insurance business given in reinsurance are openly deducted from the gross items . Although z. For example, if the reinsurers' shares in the technical provisions are claims on the reinsurer, they reduce the liabilities side.
Forms 2 and 3 subdivide the income statement into an actuarial and a non-actuarial account. The main difference between these two forms is that the investment income and expenses for personal insurers (life and health insurance) are part of the technical account, whereas according to Form 2 they are included in the non-technical account for all other insurers. Only a partial amount, the technical interest income, is transferred to the technical account. Form 4 divides the income statement into an actuarial invoice for the (property and) casualty insurance business, an actuarial invoice for the life insurance business (if applicable, health insurance business like life insurance) and a non-technical account.
Costs are insurance companies not to expense types , but according to functional areas such. B. Expenses for the conclusion and administration of insurance contracts or expenses for the administration of investments.
The RechVersV also contains the following templates, according to which all or certain insurers have to report:
- Sample 1 for the development of certain assets, mainly investments
- Sample 2 on commissions, other remuneration of insurance agents and personnel expenses
- Samples 3 to 5 on the portfolio and portfolio movement of life insurance, pension and death funds
- Template 6 for the provision for premium refunds from health insurers
Identification, recognition and valuation regulations
Sections 6–21 RechVersV contain identification requirements for various items on the assets side. According to the authorization to issue ordinances, the ordinance may only determine the identification of the asset items, but not stipulate any requirements for recognition or assessment. This is to be observed in particular in the item “Receivables from direct insurance business” under the sub-item “Claims not yet due”. In individual cases, these are negative results in the prospective calculation of the actuarial reserve , which in life insurance may not be netted with the other positive actuarial reserves, but instead, if an approach is permitted, must be recognized as a separate asset item. The RechVersV only determines where this item is to be shown, but not that it is permitted at all. For the approach it is necessary that there is a claim at all from a commercial law perspective. A contractual basis is required for this, which is usually agreed in the contracts with reference to Zillmerization . In health insurance, positive and negative actuarial reserves are netted, whereby no negative amount may be posted as a whole.
Section 14 RechVersV stipulates that the “investments for the account and risk of life insurance policyholders” must be stated separately from all other investments in one sum. Above all, these are capital investments from unit-linked life insurance , in which the results of the capital investments go completely and directly to the benefit or to the detriment of the policyholder , i.e. these are only legally held by the insurer. The corresponding opposing obligations are also shown separately and in one sum in accordance with Section 32.
Sections 22–35 RechVersV contain identification, recognition and valuation regulations for various items on the liabilities side. In particular, details on the evaluation of are post unearned , the mathematical provision , provision for outstanding claims , the provision for premium refunds , the equalization reserve and the other technical provisions determined. In § 27 RechVersV regulations on approximation and simplification procedures are given.
For pension funds, the Ordinance on the Accounting of Pension Funds ( Pension Fund Accounting Ordinance RechPensV ) was issued accordingly .