Changes from plenary report to adopted text

Removed* Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p. 40).

Removed(6) in Article 18(1), the following point (i) is added:

Removed‘(i) to indicate whether a request in another Member State for an authorisation to take up the business of direct insurance or reinsurance or to take up the business of another regulated undertaking or insurance distributor has been rejected or withdrawn, and the reasons for the rejection or withdrawal.’;

Removed(7) in Article 23(1), the following point (f) is added:

Removed‘(f) the Member States where the insurance or reinsurance undertaking concerned intends to operate;’;

Removed(8) in Article 24(2), second subparagraph, the words ‘Directive 2004/39/EC’ are replaced by the words ‘Directive 2014/65/EU’;

Removed(9) in Article 25, the following paragraph is added:

Removed‘Each refusal of an authorisation, including the identification of the applicant undertaking and the reasons for refusal shall be notified to the European Supervisory Authority (European Insurance and Occupational Pensions Authority) (‘EIOPA’) established by Regulation (EU) No 1094/2010 of the European Parliament and of the Council*. EIOPA shall keep an updated database with such information and grant access to the database to supervisory authorities.

Removed*Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48).’;

Removed(10) in Article 25a, the words ‘the European Supervisory Authority (European Insurance and Occupational Pensions Authority) (‘EIOPA’) established by Regulation (EU) No 1094/2010 of the European Parliament and of the Council6’ are replaced by the word ‘EIOPA’;

Removed(11) in Article 26, the following paragraph 4 is added:

Removed‘4. Where several supervisory authorities need to be consulted pursuant to paragraph 1, any supervisory authority concerned may request the supervisory authority of the home Member State to jointly assess the application for authorisation. The supervisory authority of the home Member State shall consider the conclusions of the joint assessment when taking its final decision.’;

Removed(12) Article 29 is amended as follows:

Removed(a) paragraphs 3 and 4 are replaced by the following:

Removed‘3. Member States shall ensure that the requirements laid down in this Directive are applied in a manner which is proportionate to the nature, scale and complexity of the risks inherent in the business of an insurance or reinsurance undertaking. Member States shall ensure such application in particular, but not exclusively, with respect to those undertakings classified as low-risk profile undertakings.

Removed4. The delegated acts and the regulatory and implementing technical standards adopted by the Commission shall take into account the principle of proportionality, thereby ensuring the proportionate application of this Directive, in particular in relation to low-risk profile undertakings.

RemovedThe draft regulatory technical standards submitted by EIOPA in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010, the draft implementing technical standards submitted in accordance with Article 15 of that Regulation, and the guidelines and recommendations issued in accordance with Article 16 of that Regulation, shall ensure the proportionate application of this Directive, in particular in relation to low-risk profile undertakings.’;

Removed(b) the following paragraphs 5 and 6 are added:

Removed‘5. The Commission may adopt delegated acts specifying or adapting the criteria laid down in Article 29a(1), points (a), (b) and (c).

Removed6. In order to ensure the consistent application of this Article, EIOPA shall develop draft regulatory technical standards to further specify the methodology to be used when classifying insurance and reinsurance undertakings as low-risk profile undertakings.

RemovedEIOPA shall submit those draft regulatory technical standards to the Commission by [OP please add date = 12 months after entry into force].

RemovedPower is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010’;

Removed(13) the following Articles 29a to 29e are inserted:

Removed‘Article 29a ▌Low-risk profile undertakings

Removed1. Member States shall ensure that insurance ▌undertakings are classified as low-risk profile undertakings, according to the process set out in Article 29b, where, for two consecutive financial years prior to such classification, they meet the following criteria:

Removed(a) For life insurance undertakings▌, all of the following criteria shall be met:

Removed(i) the interest rate risk submodule referred to in Article 105(5), point (a), is not higher than 5 % of the technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred to in Article 76;

Removed(ii) business underwritten in Member States other than the home Member State where the undertaking received its authorisation in accordance with Article 14 is not a significant cross-border activity;

Removed(iii) technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred to in Article 76, are not higher than EUR 1 000 000 000;

Removed(iv) the market risk module referred to in Article 105(5) is not higher than 20 % of total investments;

Removed(v) the reinsurance business accepted by the undertaking does not exceed 50 % of its annual total gross written premium income.

Removed(va) the Solvency Capital Requirement is complied with and a capital add-on in accordance with Article 37 has not been set.

Removed▌

Removed(b) For non-life insurance undertakings▌, all of the following criteria shall be met:

Removed(i) the average combined ratio net of reinsurance of the last three years is less than 100 %;

Removed(ii) business underwritten in Member States other than the home Member State where the undertaking received its authorisation in accordance with Article 14 is not a significant cross-border activity;

Removed(iii) the annual gross written premium is not higher than EUR 100 000 000;

Removed(iv) the sum of the annual gross written premiums in classes 4 to 7, 14 and 15 of Section A of Annex I is not higher than 30 % of total annual gross written premiums of non-life business;

Removed(v) the market risk module referred to in Article 105(5) is not higher than 20 % of total investments;

Removed(vi) the reinsurance business accepted by the undertaking does not exceed 50 % of its total gross written premium income.

Removed(via) the Solvency Capital Requirement is complied with and a capital add-on in accordance with Article 37 has not been set.

Removed▌

Removed(c) For insurance undertakings pursuing both life and non-life insurance activities in accordance with Article 73▌, all of the following criteria shall be met:

Removed(i) the interest rate risk submodule referred to in Article 105(5), point (a), is not higher than 5 % of the technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred to in Article 76;

Removed(ii) the average combined ratio net of reinsurance of the last three years is less than 100 %;

Removed(iii) technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred to in Article 76, are not higher than EUR 1 000 000 000;

Removed(iv) the annual gross written premium is not higher than EUR 100 000 000;

Removed(v) business underwritten in Member States other than the home Member State where the undertaking received its authorisation in accordance with Article 14 is not a significant cross-border activity;

Removed(vi) the sum of the annual gross written premium in classes 4 to 7, 14 and 15 of Section A of Annex I is not higher than 30 % of total annual gross written premiums of non-life business;

Removed(vii) the market risk module referred to in Article 105(5) is not higher than 20 % of total investments;

Removed(viii) the reinsurance business accepted by the undertaking does not exceed 50 % of its annual total gross written premium income.

Removed(viiia) the Solvency Capital Requirement is complied with and a capital add-on in accordance with Article 37 has not been set.

Removed▌

Removed▌

Removed1a. Notwithstanding paragraph 1, all captive insurance undertakings and captive reinsurance undertakings shall be classified as low-risk profile undertakings.

Removed2. For insurance ▌ undertakings which have obtained authorisation in accordance with Article 14 for less than two years, compliance with the criteria set out in paragraph 1 of this Article shall be assessed only with respect to the last financial year prior to the classification.

Removed3. The following insurance and reinsurance undertakings shall never be classified as low-risk profile undertakings:

Removed▌

Removed(b) undertakings which are parent undertakings of an insurance group within the meaning of Article 212, to which group supervision applies in accordance with Article 213(2), point (a) or (b), unless the group is classified as a low-risk profile group.

Removed1. Member States shall ensure that ▌undertakings complying with the conditions set out in Article 29a▌ may notify the supervisory authority of such compliance with a view to be classified as low-risk profile undertakings.