Changes from report parliamentary committee draft to plenary report

Added(a) all insured persons and beneficiaries are legal entities of the group of which the captive reinsurance undertaking is part or natural persons eligible to be covered under that group’s insurance policies and the business covering natural persons eligible to be covered under the group insurance policies remains below 5% of technical provisions; ;

RemovedArticle 1 – paragraph 1 – point 86 – point a, Article 258 – paragraph 2 – subparagraph 1: deleted

Added(b) the insurance contracts underlying the reinsurance obligations of the captive reinsurance undertaking do not relate to any compulsory third-party liability insurance;

RemovedDirective 2009/138/EC

Added(c) loans in place with the parent or any group company, including groups cashpools do not exceed 20 % of total assets held by the captive reinsurance undertaking;

RemovedArticle 1 – paragraph 1 – point 86 – point b, Article 258 – paragraphs 2a and 2b: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(d) the maximum loss resulting from the gross technical provisions can be deterministically assessed without using stochastic methods.

RemovedDirective 2009/138/EC

Added5. By way of derogation from paragraph 1, reinsurance undertakings may not disclose the part of the solvency and financial condition report addressed to policyholders and beneficiaries.

RemovedArticle 1 – paragraph 1 – point 88, Article 265 – paragraph 1a: 1a. Member States shall also ensure that, where the parent undertaking of one or more insurance or reinsurance undertakings is a credit institution, an investment firm, a financial institution, a UCITS management company, an alternative investment fund manager or a non-regulated undertaking which carries one or more of the activities referred to in Annex I to Directive 2013/36/EU where those activities constitute a significant part of its overall activity, the supervisory authorities responsible for the supervision of those insurance or reinsurance undertakings exercise general supervision over transactions between those insurance or reinsurance undertakings and the parent undertaking and its related undertakings.;

Added6. By way of derogation from paragraph 1b of this Article, insurance undertakings that are classified as low-risk profile undertakings may disclose only the quantitative data required by the implementing technical standards referred to in Article 56 in the part of the solvency and financial condition report consisting of information addressed to other market participants, provided that they disclose a full report containing all the information required in this Article every three years.

RemovedDirective 2009/138/EC

Added7. Member States shall ensure that insurance and reinsurance undertakings submit the information referred to in this Article on an annual or less frequent basis within 18 weeks after the undertaking's financial year end.

RemovedArticle 1 – paragraph 1 – point 89 – point b – introductory part, Article 301a – paragraph 3: (b) the first subparagraph of paragraph 3 is replaced by the following:

Added8. As part of the report referred to in paragraph 1 of this Article, insurance and reinsurance undertakings shall be required to disclose the impact of using, for the purposes of determining the technical provisions pursuant to Article 77, the risk-free interest rate term structure determined without the application of the transitional for the extrapolation as referred to Article 77e(1), point (aa), instead of the relevant risk-free interest rate term structure.

RemovedReverses the deletion of a standard paragraph on the possibility to revoke delegation.

AddedHowever, by way of derogation from the first subparagraph, the disclosure requirement shall not apply to a currency for which one of the following applies:

RemovedDirective 2009/138/EC

Added(i) the share of future cash flows associated with insurance or reinsurance obligations in that currency relative to all future cash flows associated with insurance or reinsurance obligations does not exceed 5 %;

RemovedArticle 1 – paragraph 1 – point 90 – introductory part, Article 304 – paragraph 1: (90) Article 304(1) is replaced by the following; / ‘1. Member States may authorise life insurance and reinsurance undertakings where: / (i) the average duration of the liabilities corresponding to the business held by the undertaking exceeds eight years; and / (ii) to apply an equity risk sub-module of the Solvency Capital Requirement, which is calibrated using a Value-at-Risk measure, over a time period, which is consistent with the typical holding period of equity investments for the undertaking concerned, with a confidence level providing the policy holders and beneficiaries with a level of protection equivalent to that set out in Article 101, where the approach provided for in this Article is used only in respect of those assets and liabilities referred in point (i) of this paragraph. In the calculation of the Solvency Capital Requirement those assets and liabilities shall be fully considered for the purpose of assessing the diversification effects, without prejudice to the need to safeguard the interests of policy holders and beneficiaries in other Member States.

Added(ii) with respect to future cash flows associated with insurance or reinsurance obligations in that currency, the share of future cash-flows pertaining to maturities where the relevant risk-free interest rate term structure is extrapolated relative to all future cash flows associated with insurance or reinsurance obligations does not exceed 10 %.’;

RemovedFacilitates long-term equity investments.

Added(27) the following Article 51a is inserted:

RemovedDirective 2009/138/EC

Added‘Article 51a Audit requirements

RemovedArticle 1 – paragraph 1 – point 90, Article 304 – paragraph 2: deleted

Added1. For insurance and reinsurance undertakings other than low-risk profile undertakings and captive insurance undertakings and captive reinsurance undertakings, the balance sheet disclosed as part of the solvency and financial condition report ▌shall be subject to an audit requirement.

RemovedThe existing approach should be continued.

Added▌

RemovedDirective 2009/138/EC

Added2a. Member States may extend the scope of the audit requirement to other elements of the solvency and financial condition report.

RemovedArticle 1 – paragraph 1 – point 91, Article 304a: deleted

Added3. The audit shall be carried out by a statutory auditor or an audit firm, in accordance with the applicable international standards, unless this Directive, or delegated acts adopted pursuant to it establish other principles and requirements for the assessment of any item of the balance sheet. Statutory auditors and audit firms, when performing this task, shall comply with the duties of auditors set out in Article 72.

RemovedDirective 2009/138/EC

Added4. A separate report, including a description of the nature, and the results, of the audit, prepared by the statutory auditor or the audit firm shall be submitted together with the solvency and financial condition report to the supervisory authority by the insurance and reinsurance undertakings.’;

RemovedArticle 1 – paragraph 1 – point 94 – point b, Article 308b – paragraph 12: 12. Notwithstanding Article 100, Article 101(3) and Article 104, Member States shall ensure that the standard parameters to be used when calculating the market risk concentration and the spread risk sub-modules in accordance with the standard formula shall be the same in relation to exposures to Member States' central governments or central banks and denominated and funded in the domestic currency of any Member State as the ones that would be applied to such exposures denominated and funded in their domestic currency;;

Added(28) Article 52 is amended as follows:

RemovedLimitation of exposures incurred before 2020 is arbitrary and should be deleted.

Added(a) in paragraph 1, the following points (e) and (f) are added:

RemovedDirective 2009/138/EC

Added‘(e) the number of insurance and reinsurance undertakings, divided by low-risk profile undertakings and others, using simplifications or other proportionality measures and the proportionality measures used by each undertaking;

RemovedArticle 1 – paragraph 1 – point 94 – point c, Article 308b – paragraph 17 – subparagraphs 1a and 1b: deleted / (deleted) / (deleted)

Added(f) the number of groups, divided by low-risk profile group and others, using simplifications or other proportionality measures and the proportionality measures used by each group.’;

RemovedDirective 2009/138/EC

Added(b) in paragraph 2, the following point (f) is added:

RemovedArticle 1 – paragraph 1 – point 95 – point b, Article 308c – paragraph 4 – point c: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added‘(f) for each Member State, the number of insurance and reinsurance undertakings and the number of groups, divided by low-risk profile undertakings and others using simplifications or other proportionality measures and the simplifications and other proportionality measures used by each undertaking.’;

RemovedDeletion reflects the rapporteur's suggestion to delete the two-part SFCR report in Article 51.

Added(c) paragraph 3 is replaced by the following:

RemovedDirective 2009/138/EC

Added‘3. EIOPA shall provide the information referred to in paragraph 2 to the European Parliament, to the Council and to the Commission, together with a report outlining the degree of supervisory convergence in the use of capital add-ons and in the use of proportionality measures between supervisory authorities in the different Member States.’;

RemovedArticle 1 – paragraph 1 – point 96 – point b, Article 308d – paragraph 5 – point c: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(29) in Article 53, paragraph 4 is replaced by the following:

RemovedDeletion reflects the rapporteur's suggestion to delete the two-part SFCR report in Article 51.

Added‘4. Paragraphs 1 and 2 of this Article shall not apply to the information referred to in Article 51(1), point (c).’;

RemovedArticle 2 – paragraph 1 – subparagraph 1: Member States shall adopt and publish, by 1 January 2025, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall immediately communicate the text of those measures to the Commission.

Added(30) in Article 56, the first paragraph is replaced by the following:

RemovedSufficient time for implementation is needed.

Added‘The Commission shall adopt delegated acts, in accordance with Article 301a, that further specify the information that insurance and reinsurance undertakings are required to disclose. The Commission may adopt delegated acts in accordance with Article 301a to change the deadlines laid down in Article 51(7), provided that a change is necessary due to sanitary emergencies, natural catastrophes and other extreme events.’;

RemovedArticle 2 – paragraph 1 – subparagraph 2: They shall apply those measures from 1 January 2026.