Changes from report parliamentary committee draft to plenary report

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

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 17, Article 35a – paragraph 1 – subparagraph 2: That limitation to regular supervisory reporting shall be granted only to undertakings that collectively do not represent more than 30 % of a Member State’s life and non-life insurance and reinsurance market respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions.

Added6. 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.

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 17, Article 35a – paragraph 1 – subparagraph 3: Low-risk profile undertakings shall be automatically granted the limitation to regular supervisory reporting.

AddedPower 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’;

RemovedAmendment to further strengthen the proportionality regime.

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

RemovedDirective 2009/138/EC

Added‘Article 29a ▌Low-risk profile undertakings

RemovedArticle 1 – paragraph 1 – point 17, Article 35a – paragraph 2 – subparagraph 1 – introductory part: The supervisory authorities concerned shall limit regular supervisory reporting, or exempt insurance and reinsurance undertakings from reporting on an item-by-item basis, where:

Added1. 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:

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 17, Article 35a – paragraph 2 – subparagraph 2: deleted

Added(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;

RemovedThe burden of proof should not be put on the undertaking/the group.

Added(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;

RemovedDirective 2009/138/EC

Added(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;

RemovedArticle 1 – paragraph 1 – point 17, Article 35a – paragraph 2 – subparagraph 3: The exemption from reporting on an item-by-item basis shall be granted only to undertakings that collectively do not represent more than 30 % of a Member State’s life and non-life insurance or reinsurance market respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions. When determining the eligibility of undertakings for those limitations or exemptions, supervisory authorities shall give priority to low-risk profile undertakings.

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

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 17, Article 35a – paragraph 2 – subparagraph 3a (new): Low-risk profile undertakings shall be automatically granted the limitation to regular supervisory reporting.

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

RemovedDirective 2009/138/EC

Added▌

RemovedArticle 1 – paragraph 1 – point 17, Article 35a – paragraph 6 – point a: deleted

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

RemovedParagraphs 1 and 2 are sufficiently clear.

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

RemovedDirective 2009/138/EC

Added(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;

RemovedArticle 1 – paragraph 1 – point 18, Article 35b – paragraph 4: 4. The Commission, after having consulted EIOPA, may adopt delegated acts in accordance with Article 301a to change the deadlines laid down in paragraphs 1, 2, and 3 of this Article for a limited time period, provided that the change is necessary due to sanitary emergencies, natural catastrophes or other extreme events, which prevent insurance and reinsurance undertakings from submitting the information within the specified deadlines.

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

RemovedDirective 2009/138/EC

Added(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;

RemovedArticle 1 – paragraph 1 – point 18, Article 35b – paragraph 4a (new): 4 a. At the request of at least one Member State, the Commission shall consult EIOPA with a view to determining whether the conditions for a temporary change of the submission deadlines have been fulfilled.

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

RemovedEstablishes a procedure to initiate a possible deadline extension.

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

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 21 – point c, Article 41 – paragraph 3 – subparagraph 2: Those written policies shall be reviewed at least annually. They shall be subject to prior approval by the administrative, management or supervisory body and be adapted in view of any significant change in the system or area concerned. Low-risk profile undertakings may perform a less frequent review, at least every five years, unless the supervisory authority concludes, based on the specific circumstances of that undertaking, that a more frequent review is needed.;

Added▌

RemovedDirective 2009/138/EC

Added(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:

RemovedArticle 1 – paragraph 1 – point 24 – point a, Article 45 – paragraph 1 – subparagraph 2 – point d: (d) upon a reasoned request by the supervisory authorities, consideration of the macroeconomic situation, and macroeconomic and financial markets’ developments, that may affect the specific risk profile, the approved risk tolerance limits, the business strategy, the underwriting activities or the investment decisions, and the overall solvency needs referred to in point (a) of the undertaking;

Added(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;

RemovedDirective 2009/138/EC

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

RemovedArticle 1 – paragraph 1 – point 24 – point a, Article 45 – paragraph 1 – subparagraph 2 – point e: deleted

Added(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;

RemovedThis provision is disproportionate given that the vast majority of insurance companies do not pose any systemic risk.

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

RemovedDirective 2009/138/EC