Changes from plenary report to adopted text

Removed2. The notification referred to in paragraph 1 of this Article shall be submitted by the ▌undertaking to the supervisory authority of the Member State that granted the prior authorisation referred to in Article 14. That notification shall include all of the following:

Removed(a) evidence of the compliance with all criteria set out in Article 29a applicable to that undertaking;

Removed(b) a declaration that the undertaking does not plan any strategic change that would lead to non-compliance with the criteria set out in Article 29a within the next three years;

Removed(c) an early identification of the proportionality measures the undertaking expects to implement, in particular if the best estimate simplification is intended to be used and whether the undertaking plans to use the simplified method to calculate technical provisions laid down in Article 77(7).

Removed3. The supervisory authority may oppose the classification as low-risk profile undertaking within one month of receipt of the notification referred to in paragraph 1 of this Article on grounds related exclusively to the non-compliance with the conditions foreseen under Article 29a or where the undertaking represents more than 5% of the life or, where applicable, non-life insurance market of the home Member State of the undertaking. A decision of the supervisory authority to oppose to the classification shall be done in writing and state the reasons of the supervisory authority’s disagreement. Absent such decision, the insurance undertaking shall be classified as low-risk profile undertaking as of the end of the one month opposition period or an earlier date where the supervisory authority has issued a decision earlier confirming compliance with criteria.

Removed4. With respect to requests received by supervisory authorities within the first six months of [OP please insert date = entry into application of this Directive], the period referred to in paragraph 2 shall be extended to two months.

Removed5. The ▌undertakings shall be classified as low-risk profile undertaking for as long as such classification does not cease in accordance with this paragraph.

RemovedWhere a low-risk profile undertaking no longer complies with any of the criteria set out in Article 29a(1) it shall inform the supervisory authority without delay. Where such non-compliance continuously persists over two consecutive years, the undertaking shall notify the supervisory authority of this situation, and will cease to be classified as low-risk profile undertaking as from the third financial year.

RemovedWhen a low-risk profile undertaking no longer complies with any of the conditions set out in Article 29a(3), that undertaking shall notify the supervisory authority without delay and will cease to be classified as low-risk profile undertaking as from the following financial year.

RemovedArticle 29c Use of proportionality measures by undertakings classified as low-risk profile

Removed1. Member States shall ensure that, without prejudice to specific requirements set out in each proportionality measure, insurance and reinsurance undertakings classified as low-risk profile undertakings may make use of all the proportionality measures provided for in this Directive, in particular those provided for in Article 35(5a), Article 41, Article 45(1b), Article 45(5), ▌ Article 51(6), Article 51a(1), Article 77(7) and Article144a(4), and any proportionality measure provided for in the delegated acts adopted pursuant to this Directive.

Removed2. By way of derogation from paragraph 1, where the supervisory authority has serious concerns in relation to the risk profile of a low-risk profile undertaking, the supervisory authority may, in exceptional circumstances, request the undertaking concerned to refrain from using one or several proportionality measures listed in paragraph 1 provided this is duly justified in writing on consideration of the impact on the organisation of the undertaking and the specificities or change of its risk profile.

RemovedArticle 29d Use of proportionality measures by undertakings not classified as low-risk profile undertakings

Removed1. Member States shall ensure that insurance and reinsurance undertakings that are not classified as low-risk profile undertakings may use any proportionality measure provided for in this Directive, in particular those provided for in Article 35(5a), Article 41, Article 45(1b), Article 45(5), Article 77(7) and Article 144a(4) and any proportionality measure provided for in the delegated acts adopted pursuant to this Directive, subject to prior approval from the supervisory authority.

RemovedThe insurance or reinsurance undertaking shall submit a request in writing for approval to the supervisory authority. That request shall include all of the following:

Removed(a) the list of the proportionality measures intended to be used and the reasons why their use is justified in relation to the nature, scale and complexity of the risks inherent in the business of the undertaking;

Removed(b) any other material information regarding the risk profile of the undertaking;

Removed▌

Removed2. The supervisory authority shall, within two months of receipt, assess the request and inform the undertaking of its approval or rejection, as well as of the proportionality measures granted. Where the supervisory authority approves the use of proportionality measures under certain terms or conditions, the approval decision shall contain the reasons for those terms and conditions. A decision of the supervisory authority to oppose the use of one or several proportionality measures listed in the request submitted by the undertaking shall be done in writing, and state the reasons for the supervisory authority’s decision. Such reasons shall be linked to the risk profile of the undertaking,

Removed3. The supervisory authority may request any further information that is necessary to complete the assessment. The assessment period referred to in paragraph 2 shall be suspended for the period between the date of request for information by the supervisory authorities and the receipt of a response thereto by the concerned undertaking. Any further requests by the supervisory authority shall not result in a suspension of the assessment period.

Removed▌

Removed5. Approval to use proportionality measures may be amended or withdrawn at any point in time if the insurance or reinsurance undertaking’s risk profile has changed. The authority shall state in writing the reasons of its decision accordingly.

Removed▌ ▌

Removed▌

Removed▌

Removed(14) in Article 30(2), the first subparagraph is replaced by the following:

Removed‘Financial supervision pursuant to paragraph 1 shall include verification, with respect to the entire business of the insurance and reinsurance undertaking, of its system of governance, of its state of solvency, of the establishment of technical provisions, of its assets and of the eligible own funds, in accordance with the rules laid down or practices followed in the home Member State under provisions adopted at Union level.’;

Removed(15) the following Article 33a is inserted:

Removed‘Article 33a Supervisory cooperation between home and host supervisory authorities

Removed1. In the event of significant cross-border activities ▌, the supervisory authority of the home Member State and the supervisory authority of the host Member State shall cooperate with each other to assess whether, in the framework of the supervisory review process, the insurance undertaking has a clear understanding and a sound management of the risks that it faces, or may face, in the host Member State.

RemovedThis cooperation shall be tailored to the risks entailed by the significant cross-border activities and shall cover at least the following aspects:

Removed(a) the system of governance including the ability of the head office’s management to understand the cross-border market specificities, risk management tools, internal controls in place and compliance procedures for the cross-border business;

Removed(b) outsourcing ▌ and distribution partnerships;

Removed(c) business strategy and claims handling;

Removed(d) consumer protection.

Removed2. The supervisory authority of the home Member State shall, in a timely manner, inform the supervisory authority of the host Member State about the outcome of its supervisory review process related to the cross-border activity where potential issues of compliance with the provisions applicable in the host Member State have been identified.

Removed▌

Removed(16) Article 35 is amended as follows:

Removed(a) in paragraph 1, the first sentence is replaced by the following:

Removed‘Member States shall require insurance and reinsurance undertakings to submit to the supervisory authorities the information which is necessary for the purposes of supervision, taking into account the objectives of supervision laid down in Articles 27 and 28 and the general principles of supervision laid down in Article 29, in particular the principle of proportionality.’;

Removed(b) the following paragraph 5a is inserted:

Removed‘5a. Taking into account the information required in paragraphs 1 and 2 and the principles set out in paragraphs 3 and 4, Member States shall ensure that insurance and reinsurance undertakings submit to the supervisory authorities a regular supervisory report that comprises information on the undertaking's business and performance, system of governance, risk profile, valuation for solvency purposes and capital management over the reporting period.

RemovedThe frequency of the regular supervisory report shall be:

Removed(a) every five years, for low-risk profile undertakings;

Removed(b) ▌every three years for insurance and reinsurance undertakings other than low-risk profile undertakings.

RemovedIf deemed necessary, a supervisory authority may require supervised undertakings to report more frequently;’;

Removed(c) paragraphs 6, 7 and 8 are deleted;

Removed(d) paragraph 9 is replaced by the following:

Removed‘9. The Commission shall adopt delegated acts in accordance with Article 301a specifying the information referred to in paragraphs 1 to 4 of this Article and criteria for limited supervisory reporting for captive insurance undertakings and reinsurance captive undertakings considering the nature, scale and complexity of the risks of these specific types of undertakings with a view to ensuring, to the appropriate extent, convergence of supervisory reporting.’;

Removed(e) in paragraph 10, the first subparagraph is replaced by the following:

Removed‘In order to ensure uniform conditions of application of this Article, EIOPA shall develop draft implementing technical standards on regular supervisory reporting with regard to the templates for the submission of information to the supervisory authorities referred to in paragraphs 1 and 2, including the risk-based thresholds establishing the trigger for reporting requirements when applicable or any exemption of specific information for certain types of undertakings such as captive insurance and reinsurance undertakings considering the nature, scale and complexity of the risks of specific types of undertakings.’;

Removed(f) paragraph 11 is deleted;

Removed(g) the following paragraph 12 is added:

Removed‘12. By [OP please insert date = 2 years after publication date], EIOPA shall submit to the Commission a report on potential measures, including legislative changes, to develop an integrated data collection to:

Removed(a) reduce areas of duplications and inconsistencies between the reporting frameworks in the insurance sector and other sectors of the financial industry; ▌

Removed(b) improve data standardisation and efficient sharing and use of data already reported within any Union reporting framework by any relevant competent authority, both Union and national; and

Removed(ba) reduce compliance costs, in particular for low-risk profile undertakings;

RemovedEIOPA shall prioritise, but not limit itself to information concerning the areas of collective investment undertakings and derivatives reporting.

RemovedWhen preparing the report referred to in the first subparagraph, EIOPA shall work in close cooperation with the other European Supervisory Authorities and the European Central Bank and shall, where relevant, involve the national competent authorities.’;

Removed(17) the following Article 35a is inserted: