The Solvency ii
Directive
(71)
The solvency of a subsidiary insurance or reinsurance undertaking of
an insurance holding company, third-country insurance or reinsurance
undertaking may be affected by the financial resources of the group
of which it is a part and by the distribution of financial resources
within that group.
The supervisory authorities should therefore be
provided with the means of exercising group supervision and of
taking appropriate measures at the level of the insurance or
reinsurance undertaking where its solvency is or may be
jeopardised.
(72) Risk concentrations and intra group
transactions can affect the financial position of insurance or
reinsurance undertakings.
The supervisory authorities should
therefore be able to exercise supervision over such risk
concentrations and intra group transactions, taking into account the
nature of relationships between regulated entities as well as non
regulated entities, including insurance holding companies and mixed
activity insurance holding companies, and take appropriate measures
at the level of the insurance or reinsurance undertaking where its
solvency is or may be jeopardised.
(73) Insurance and
reinsurance undertakings within a group should have appropriate
governance systems which should be subject to supervisory
review.
(74) All insurance or reinsurance groups subject to
group supervision should have a group supervisor appointed from
among the supervisory authorities involved.
The rights and duties of
the group supervisor should comprise appropriate
coordination and
decision-making powers.
The authorities involved in the supervision
of insurance and reinsurance undertakings belonging to the same
group should establish coordination arrangements.
(74a) In
light of the increasing competences of the group supervisor it has
to be ensured that the criteria for choosing the group supervisor
cannot be arbitrarily circumvented.
In particular in cases
where the
group supervisor will be designated taking into account the
structure of the group and the relative importance of the insurance
and reinsurance activities in different markets, internal group
transactions as well as group reinsurance should
not be
double-counted when assessing their relative importance within a
market.
(75) Supervisors from all Member States in which
undertakings of the group are established should be involved in
group supervision through a college of supervisors.
They should all
have access to information available with other supervisory
authorities within the college and they should be dynamically
involved in decision-making.
Cooperation between the authorities
responsible for the supervision of insurance and reinsurance
undertakings as well as between those authorities and the
authorities responsible for the supervision of undertakings active
in other financial sectors should be established.
(75a) The
activities of the college should be proportionate to the nature,
scale and complexity of the risks inherent in the business of all
undertakings that are part of the group and to the cross-border
dimension.
The college of supervisors should be set up to ensure
that cooperation, exchange of information and consultation processes
among the supervisory authorities of the college are effectively
applied in accordance with Title III of this Directive.
Supervisory
authorities should use the college to promote convergence of their
respective decisions and to cooperate closely to carry out their
supervisory activities across the group under harmonised
criteria.
(75b) This Directive provides a consultative role
for CEIOPS.
Advice by CEIOPS to the relevant supervisor is
not
binding on that supervisor when taking its decision.
When taking a
decision, the relevant supervisor should take full account of that
advice and explain any significant deviation therefrom.
It is advice
that supervisors may not wish to ignore.
(76) Insurance and
reinsurance undertakings which are part of a group, the
head of
which is outside the Community should be subject to
equivalent and
appropriate group supervisory arrangements.
It is therefore
necessary to provide for transparency of rules and exchange of
information with third-country authorities in all relevant
circumstances.
In order to ensure a harmonised approach to the
determination and assessment of equivalence of third country
insurance and reinsurance supervision, provision should be made for
the commission to make a binding decision regarding the equivalence
of third country solvency regimes.
For third countries regarding
which no decision has been made by the Commission the assessment of
equivalence should be made by the group supervisor after consulting
with the other relevant supervisory authorities.
(77) Since
national legislation concerning reorganisation measures and
winding-up proceedings is not harmonised it is appropriate, in the
framework of the Internal Market, to ensure the mutual recognition
of reorganisation measures and winding-up legislation of the Member
States concerning insurance undertakings as well as the necessary
cooperation taking into account the need for unity, universality,
coordination and publicity for such measures and the equivalent
treatment and protection of insurance creditors.
(78) It
should be ensured that reorganisation measures
which were adopted by
the competent authority of a Member State in order to preserve or
restore the financial soundness of an insurance undertaking and to
prevent as much as possible a winding-up situation, produce full
effects throughout the Community.
However, the effects of any such
reorganisation measures as well as winding-up proceedings vis-à-vis
third countries should not be affected.
(79) A distinction
should be made between the competent authorities for the purposes of
reorganisation measures and winding-up proceedings and the
supervisory authorities of the insurance undertakings.
(80)
The definition of "branch" for
insolvency purposes, should, in accordance with existing
insolvency principles, take account of the single legal
personality of the insurance undertaking.
However, the legislation of the home
Member State should determine the manner in which the
assets and liabilities held by independent persons who have a
permanent authority to act as agent for an insurance undertaking
are to be treated in the winding-up of that insurance undertaking.
  
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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