Changes from report parliamentary committee draft to plenary report

RemovedArticle 1 – paragraph 1 – point 13, Article 29d – paragraph 1 – subparagraph 1: 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 in Article 35(5a), Article 41, Article 45(1b), Article 45(5), Article 77(7) and Article144a(4) and any proportionality measure provided for in the delegated acts adopted pursuant to this Directive, subject to prior approval from the supervisory authority.

Added(g) point (25) is amended as follows:

RemovedDirective 2009/138/EC

Added(i) in point (a), the words ‘Article 4 (1), (5) and (21) of Directive 2006/48/EC’ are replaced by the words ‘Article 4(1), points (1), (18) and (26), of Regulation (EU) No 575/2013 of the European Parliament and of the Council*;

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

Added______________________________

RemovedThe commitment required here is not realistic and would essentially prevent many undertakings from benefitting from proportionality measures.

Added* Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, (OJ L 176, 27.6.2013, p. 338).’;

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 13, Article 29d – paragraph 4: deleted

Added(h) point (27) is amended as follows:

RemovedThe regular two month period shall apply at all times.

Added(i) in point (c), point (ii) is replaced by the following:

RemovedDirective 2009/138/EC

Added‘(ii) a net turnover, within the meaning of Article 2, point (5), of Directive 2013/34/EU, of EUR 13 600 000;’;

RemovedArticle 1 – paragraph 1 – point 13, Article 29e: deleted / (deleted) / (deleted) / (deleted)

Added(ii) the words ‘Directive 83/349/EEC’ are replaced by the words ‘Directive 2013/34/EU’;

RemovedGiven that Article 29b requires insurance companies to notify supervisory authorities of the use of proportionality measures, the additional reporting requirements in Article 29e are superfluous.

Added(i) the following points (41) and (41a) are added:

RemovedDirective 2009/138/EC

Added‘(41) ‘regulated undertaking’ means ‘regulated entity’ within the meaning of Article 2(4) of Directive 2002/87/EC or an institution for occupational retirement provision within the meaning of Article 6(1) of Directive (EU) 2016/2341;

RemovedArticle 1 – paragraph 1 – point 15, Article 33a – paragraph 1 – subparagraph 1: In the event of significant cross-border activities, the supervisory authority of the home Member State shall cooperate with the supervisory authority of the host Member State to assess whether the insurance undertaking has a clear understanding of the risks that it faces, or may face, in the host Member State. / The supervisory authority of the host Member State shall be obliged to cooperate with the supervisory authority of the home Member State.

Added(41a) ‘crypto-asset’ means a crypto-asset as defined in Article 3, point (6), of Regulation (EU) 2023/1114 of the European Parliament and of the Council*.’;

Removed1st part: Editorial correction: this is already contained in paragraph 3 of Article 33a and has been transposed into a new definition (cf. Art. 13). / 2nd part: introduces an obligation for Member States authorities to work together.

Added____________________

RemovedDirective 2009/138/EC

Added* 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).

RemovedArticle 1 – paragraph 1 – point 15, Article 33a – paragraph 1 – subparagraph 2 – point b: (b) outsourcing and distribution partnerships;

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

RemovedThe definition of "outsourcing" already implies that an arrangement is in place.

Added‘(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.’;

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 15, Article 33a – paragraph 3: deleted

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

Change 6

ChangedReplaced(8) byin aArticle new24(2), horizontalsecond definitionsubparagraph, ofthe "significantwords cross-border‘Directive activities"2004/39/EC’ inare Articlereplaced 13.by the words ‘Directive 2014/65/EU’;

Change 7

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 16 – point a, Article 35 – paragraph 1: 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, in particular the principle of proportionality, laid down in Article 29.

Added‘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.

RemovedDirective 2009/138/EC

Added*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).’;

RemovedArticle 1 – paragraph 1 – point 16 – point b, Article 35 – paragraph 5a – subparagraph 2 – point a: (a) every five years, for low-risk profile undertakings;

Added(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’;

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 16 – point b, Article 35 – paragraph 5a – subparagraph 2 – point b: (b) every three years for insurance and reinsurance undertakings other than low-risk profile undertakings. In exceptional circumstances and based on duly justified reasons, a supervisory authority may require supervised undertakings to report more frequently;

Added‘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.’;

RemovedA higher reporting frequency should only be done based on a duly justified opinion.

Added(12) Article 29 is amended as follows:

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 16 – point g, Article 35 – paragraph 12 – subparagraph 1 – point a: (a) reduce areas of duplications and inconsistencies between the reporting frameworks in the insurance sector and other sectors of the financial industry;

Added‘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.

RemovedDirective 2009/138/EC

Added4. 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.

RemovedArticle 1 – paragraph 1 – point 16 – point g, Article 35 – paragraph 12 – subparagraph 1 – point b a (new): (ba) reduce compliance costs, in particular for low-risk profile undertakings;

AddedThe 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.’;

RemovedAny measures to create an integrated data collection tool should contribute to reducing compliance costs for insurance undertakings, particularly those with a low risk profile.