Report on the application of Title III of Directive 2009/138/EC on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II)

Background and further information:

Since 1 January 2016, when it entered into application, the Solvency II Directive has provided a sound and robust prudential framework for insurance firms in the EU. Based on the risk profile of individual companies, it promotes comparability, transparency and competitiveness.

Title III of Solvency II concerns the supervision of insurance and reinsurance undertakings in a group. The Directive uses an innovative supervisory model which assigns a key role to a group supervisor, while recognising and maintaining an important role for the solo supervisor.

Solvency II also contains provisions on institutions for occupational retirement provision. In particular, subject to certain conditions, life insurers’ occupational retirement provision business is exempt from full application of the solvency capital requirement for a transition period. Via an amendment to Solvency II, Directive (EU) 2016/2341 (the IORP II Directive) extended this period from the end of 2019 to the end of 2022.

Solvency II requires the Commission to report to the European Parliament and Council on the group supervision provisions in Title III and on the transition period for IORPs operated by life insurance undertakings. For the sake of convenience, the present report fulfils these two (unrelated) requirements in a single document.

The European Commission published on 5 April 2018 a report on the application of the Solvency II Directive as regards the supervision of insurance and reinsurance undertakings in a group, and the assessment of the transitional period for the occupational retirement provision business of life insurance undertakings.

• Primary Source

ESO: Insurance: Solvency II http://www.europeansources.info/record/risk-management-and-supervision-of-insurance-companies-solvency-2/

---