The Solvency ii
Directive
(61)
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(62)
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(63)
In order to take account of the international aspects of
reinsurance, provision should be made to enable the conclusion of
international agreements with a third country aimed at defining the
means of supervision over reinsurance entities which conduct
business in the territory of each contracting party.Moreover, a
flexible procedure should be provided for to make it possible to
assess prudential equivalence with third countries on a
Community basis, so as to improve liberalisation of reinsurance
services in third countries, be it through establishment or
cross-border provision of services.
(63a) Due to the
special nature of finite reinsurance
activities, Member States should ensure that insurance
and reinsurance undertakings concluding finite reinsurance
contracts or pursuing finite reinsurance activities can properly
identify, measure and control the risks arising from those
contracts or activities.
(63b) Appropriate rules should
be provided for special purpose vehicles which assume risks from
insurance and reinsurance undertakings without being an
insurance or reinsurance undertaking.
Recoverable
amounts from a special purpose
vehicle should be considered as amounts deductible under
reinsurance or retrocession contracts.
(63c) Special
purpose vehicles authorised before 31 October 2012 should be
subject to the law of the Member State having authorised the
special purpose vehicle.
However,
in order to avoid regulatory
arbitrage, any new activity commenced by such a special purpose
vehicle after 31 October 2012 should be subject to the
provisions of this Directive.
(63d) Given the
increasing cross-border nature of insurance business,
divergences between Member States' regimes on special purpose
vehicles, which are subject to the provisions of this Directive,
should be reduced to the greatest extent possible, taking
account of their supervisory structures.
(63e) Further
work on special purpose vehicles should be conducted taking into
account the work undertaken in other financial sectors.
(64) Measures concerning the supervision of insurance and
reinsurance undertakings in a group
should enable the authorities supervising an insurance or
reinsurance undertaking to form a more soundly based judgment of
its financial situation.
(65) Such group
supervision should take into account insurance holding companies
and mixed-activity insurance holding companies to the extent
necessary.
However, this Directive should not in any
way imply that Member States are required to apply supervision
to those undertakings considered individually.
(66)
Whilst the supervision of individual insurance and reinsurance
undertakings remains the essential principle of insurance
supervision it is necessary to determine which undertakings fall
under the scope of supervision at group level.
(66a)
Subject to Community and national
law, undertakings, in particular mutuals and mutual-type
associations, should be able to come together by constituting
concentrations or groups, not through capital ties but through
formalised strong and sustainable relationships, based on
contractual or other material recognition that guarantees a
financial solidarity between those undertakings.
Where a dominant influence is exercised through a centralised
coordination, those undertakings should be supervised according
to the same rules as those provided for groups constituted
through capital ties in order to achieve an adequate level of
protection for policyholders and a level playing field between
groups.
(67) Group supervision
should apply in any case at the level of the ultimate
participating undertaking which has its head office in the
Community.
Member States should however be able to
allow their supervisory authorities to apply group supervision
at a limited number of lower levels, where they deem it
necessary.
(68) It is necessary to calculate solvency at
group level for insurance and reinsurance undertakings forming
part of a group.
(68a) The
consolidated Solvency Capital Requirement for a group
should take into account the global diversification of risks
that exists across all the insurance entities in that group in
order to reflect properly the risk exposures of that group.
(69) Insurance and reinsurance undertakings belonging to a
group should be able to apply for the approval of an internal
model to be used for the solvency calculation at both group and
individual levels.
(69a) Whereas some provisions of the
Directive provide explicitly for a mediation or a consultation
role for CEIOPS, this should not preclude CEIOPS from playing a
mediation or a consultation role also with regard to other
provisions.
(69b) This Directive reflects an innovative
supervisory model where a key role is assigned to a group
supervisor, whilst recognising and maintaining an important role
to the solo supervisor.
The
powers and responsibilities of supervisors go hand-in-hand with
their accountability.
(69c) All policyholders and
beneficiaries should receive equal treatment regardless of their
nationality or residence.
For this purpose, Member
States should ensure that all measures taken by a supervisory
authority on the basis of that supervisory authority's national
mandate are not regarded as contrary to the interests of that
Member State or of policyholders and beneficiaries in that
Member State.
In all situations of settling of claims
and winding-up, assets should be
distributed on an equitable basis to all relevant policy
holders, regardless of their nationality or residence.
(70) It is necessary to ensure that own funds are
appropriately distributed within the group and available to
protect policyholders and beneficiaries where needed.
To this end insurance and reinsurance undertakings within a
group should have sufficient own funds to cover their solvency
capital requirement.
(70a) All supervisors involved in
group supervision should be able to understand the decisions
made, in particular when those decisions are made by the group
supervisor.
When it becomes available to one of the
supervisors, the relevant information should therefore as soon
as it becomes available be shared with the other supervisors, in
order for all supervisors to be able to establish an opinion
based on the same relevant information.
In the event
that the supervisors concerned cannot reach an agreement,
qualified advice from the CEIOPS should be sought to resolve the
situation.
 
Return to Index
Solvency ii Introduction (1) to (10)
Solvency ii Introduction (11) to (20)
Solvency ii Introduction (21) to (30)
Solvency ii Introduction (31) to (40)
Solvency ii Introduction (41) to (50)
Solvency ii Introduction (51) to (60)
Solvency ii Introduction (61) to (70)
Solvency ii Introduction (71) to (80)
Solvency ii Introduction (81) to (95)
Solvency ii Articles 1 to 10
Solvency ii Articles 11 to 20
Solvency ii Articles 21 to 30
Solvency ii Articles 31 to 39
Solvency ii Articles 40 to 49
Solvency ii Articles 50 to 62
Solvency ii Articles 63 to 71
Solvency ii Articles 72 to 85
Solvency ii Articles 86 to 99
Solvency ii Articles 100 to 125
Solvency ii Articles 126 to 142
Solvency ii Articles 143 to 159
Solvency ii Articles 160 to 173
Solvency ii Articles 174 to 203
Solvency ii Articles 204 to 215
Solvency ii Articles 216 to 233
Solvency ii Articles 234 to
262
Solvency ii Articles 263 to 298
Solvency ii Articles 300 to 313
Solvency ii ANNEX 1 to 3
Solvency ii ANNEX 4 to 5
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