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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