Changes from report parliamentary committee draft to plenary report

Added(2) in Article 4(1), points (a), (b) and (c) are replaced by the following:

RemovedArticle 1 – paragraph 1 – point 13, Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point vii: (vii) investments in non-traditional investments do not represent more than 30% of total investments;

Added‘(a) the undertaking’s annual gross written premium does not exceed EUR 15 000 000;

RemovedDirective 2009/138/EC

Added(b) the total of the undertaking’s technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred in Article 76, does not exceed EUR 50 000 000;’;

Change 4

ChangedArticle 1 –(c) paragraphwhere 1the –undertaking pointbelongs 13,to Articlea 29agroup, –the paragraphtotal 1of –the subparagraphtechnical 1provisions –of pointthe cgroup –defined subparagraphas 1gross –of pointthe viii:amounts (viii)recoverable thefrom reinsurance businesscontracts acceptedand byspecial thepurpose undertakingvehicles does not exceed 50EUR %50 of000 its000;’(3) annualArticle total6 grossis writtenamended premiumas income.follows:

Change 5

RemovedDirective 2009/138/EC

Added(a) In paragraph 1, point (a) is replaced by the following:

RemovedArticle 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point viii a (new)

Added‘(a) the assistance is provided in the event of an accident or breakdown involving a road vehicle when the accident or breakdown occurs in the territory of the Member State of the undertaking providing cover or neighbouring countries;’;

RemovedArticle 1 – paragraph 1 – point 13: (viii a) the Solvency Capital Requirement is complied with and a capital add-on in accordance with Article 37 has not been set.

Added(b) paragraph 2 is replaced by the following:

RemovedDirective 2009/138/EC

Added‘2. In the cases referred to in paragraph 1, (b)(i) and (b)(ii), the condition that the accident or breakdown must have happened in the territory of the Member State of the undertaking providing cover shall not apply where the beneficiary is a member of the body providing cover and the breakdown service or conveyance of the vehicle is provided simply on presentation of a membership card, without any additional premium being paid, by a similar body in the country concerned on the basis of a reciprocal agreement.’;

RemovedArticle 1 – paragraph 1 – point 13, Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 2: deleted

Added(c) paragraph 3 is deleted;

RemovedAddressed via the amended definition of low-risk profile undertakings.

Added(4) in Article 8, point (3) is deleted;

RemovedDirective 2009/138/EC

Added(5) Article 13 is amended as follows:

RemovedArticle 1 – paragraph 1 – point 13, Article 29a – paragraph 1 – subparagraph 2: For the purpose of this Article, traditional investments shall consist of bonds, equities, real estate, loans including private loans, promissory notes and mortgages, cash and cash equivalents and deposits and related derivatives. Total investments shall consist of all assets, including derivatives, and excluding investments covering unit-linked contracts, excluding property and equipment for own use, excluding property under construction for own use.

Added(a) in point (7), point (b) is deleted;

RemovedDirective 2009/138/EC

Added(b) the following points (10a), (10aa), (10b), (10c) and (10d) are inserted:

RemovedArticle 1 – paragraph 1 – point 13, Article 29a – paragraph 1a (new): 1a. Notwithstanding paragraph 1, all captive insurance undertakings and captive reinsurance undertakings shall be classified as low-risk profile undertakings.

Added‘(10a) ‘low-risk profile undertaking’ means an insurance and reinsurance undertaking that meets the conditions set out in Article 29a and has been classified as such in accordance with Article 29b;

RemovedCaptive insurance undertakings and captive reinsurance undertakings should automatically be classified as low-risk profile undertakings.

Added(10aa) ‘significant cross-border activities’ means insurance and reinsurance activities carried out by an insurance or reinsurance undertaking under the freedom of establishment or the freedom to provide services in a host Member State, which exceed 15 % or EUR 30 000 000 of the annual gross written premium income of the undertaking, measured with reference to the last available financial statement of the undertaking;

RemovedDirective 2009/138/EC

Added(10b) ‘audit firm’ means an audit firm within the meaning of Article 2, point (3), of Directive 2006/43/EC of the European Parliament and of the Council*;

RemovedArticle 1 – paragraph 1 – point 13, Article 29a – paragraph 3 – introductory part: 3. The following insurance undertakings shall never be classified as low-risk profile undertakings:

Added(10c) ‘statutory auditor’ means a statutory auditor within the meaning of Article 2, point (2) of Directive 2006/43/EC of the European Parliament and of the Council*;

RemovedDirective 2009/138/EC

Added(10d) ‘low-risk profile group’ means a group that complies with the conditions laid down in Article 213a and has been classified as such by the group supervisor pursuant to paragraph 2 of that Article;

RemovedArticle 1 – paragraph 1 – point 13, Article 29a – paragraph 3 – point a: deleted

Added* Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).’;

RemovedThe application of an internal model is not per se a sign of riskiness.

Added(c) points (15) and (16) are replaced by the following:

RemovedDirective 2009/138/EC

Added‘(15) ‘parent undertaking’ means a parent undertaking as referred to in Article 22(1) and (2) of Directive 2013/34/EU of the European Parliament and of the Council*, as well as an undertaking which supervisory authorities shall consider as parent undertaking in accordance with Article 212 of this Directive;

RemovedArticle 1 – paragraph 1 – point 13, Article 29b – paragraph 1: 1. Member States shall ensure that insurance undertakings complying with the conditions set out in Article 29a(1) and (3) may notify the supervisory authority of such compliance with a view to be classified as low-risk profile undertakings.

Added‘(16) ‘subsidiary undertaking’ means any subsidiary undertaking as referred to in Article 22(1) and (2) of Directive 2013/34/EU, including subsidiaries thereof, as well as an undertaking which supervisory authorities are to consider as subsidiary undertaking in accordance with Article 212 of this Directive;

RemovedDirective 2009/138/EC

Added* Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).’;

RemovedArticle 1 – paragraph 1 – point 13, Article 29b – paragraph 2 – introductory part: 2. The notification referred to in paragraph 1 of this Article shall be submitted by the insurance 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:

Added(d) in point (18), the words ‘Article 1 of Directive 83/349/EEC’ are replaced by the words ‘Article 22(1) and (2) of Directive 2013/34/EU’;

RemovedDirective 2009/138/EC

Added(e) point (19) is replaced by the following:

RemovedArticle 1 – paragraph 1 – point 13, Article 29b – paragraph 5 – subparagraph 1: The insurance undertakings shall be classified as low-risk profile undertaking for as long as such classification does not cease in accordance with this paragraph.

Added‘(19) ‘intra-group transaction’ means any transaction by which an insurance or reinsurance undertaking, a third-country insurance or reinsurance undertaking, an insurance holding company or a mixed financial holding company relies, either directly or indirectly, on other undertakings within the same group or on any natural or legal person linked to the undertakings within that group by close links, for the fulfilment of an obligation, whether or not contractual, and whether or not for payment;’;

RemovedDirective 2009/138/EC

Added(f) point (22) is amended as follows:

RemovedArticle 1 – paragraph 1 – point 13, Article 29c – paragraph 1: 1. 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 use all the proportionality measures provided for in this Directive, in particular 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.

Added(i) in point (a), the words ‘Article 4(1)(14) of Directive 2004/39/EC’ are replaced by the words ‘Article 4(1), point (21), of Directive 2014/65/EU of the European Parliament and of the Council*;

RemovedDirective 2009/138/EC

Added___________________________________

RemovedArticle 1 – paragraph 1 – point 13, Article 29c – paragraph 2: 2. 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.

Added* Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU, (OJ L 173, 12.6.2014, p. 349).’;

RemovedDirective 2009/138/EC

Added(ii) in point (b)(i), the words ‘Directive 2004/39/EC’ are replaced by the words ‘Directive 2014/65/EU’;