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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