Solvency II — Directive 2009/138/EC of the European Parliament and of the…

Solvency II — Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast) (Text with EEA relevance)

directive · European Union · 32009L0138

1726 provisions in 8891 nodes · cited by 38 instruments we hold · 137 provisions hand work to national law

Defined terms · All instruments · EU law · access to information · accounting · administrative structures · advertising · after-sales service · branch · capital movement

TITLE I GENERAL RULES ON THE TAKING-UP AND PURSUIT OF DIRECT INSURANCE AND REINSURANCE ACTIVITIES

CHAPTER I Subject matter, scope and definitions

Section 1 Subject matter and scope

Article 1 Subject matter

Section 2 Exclusions from scope

Subsection 1 General

Article 3 Statutory systems

Division

Article 4 Exclusion from scope due to size

Subsection 2 Non-life

Article 7 Mutual undertakings

Division

Article 8 Institutions

Article 9 Operations and activities

Article 10 Organisations, undertakings and institutions

Subsection 4 Reinsurance

Article 11 Reinsurance

Division

Article 12 Reinsurance undertakings closing their activity

Division

Section 3 Definitions

Article 13 Definitions

CHAPTER II Taking-up of business

Article 14 Principle of authorisation

Article 15 Scope of authorisation

Division

Article 16 Ancillary risks

Article 17 Legal form of the insurance or reinsurance undertaking

Division

Article 18 Conditions for authorisation

Article 19 Close links

Division

Article 20 Head office of insurance undertakings and reinsurance undertakings

Division

Article 21 Policy conditions and scales of premiums

Division

Article 22 Economic requirements of the market

Division

Article 23 Scheme of operations

Article 24 Shareholders and members with qualifying holdings

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Article 25 Refusal of authorisation

Division

Article 26 Prior consultation of the authorities of other Member States

CHAPTER III Supervisory authorities and general rules

Article 27 Main objective of supervision

Division

Article 28 Financial stability and pro-cyclicality

Division

Article 29 General principles of supervision

Division

Article 30 Supervisory authorities and scope of supervision

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Article 31 Transparency and accountability

Article 32 Prohibition of refusal of reinsurance contracts or retrocession contracts

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Article 33 Supervision of branches established in another Member State

Division

Article 34 General supervisory powers

Division

Article 35 Information to be provided for supervisory purposes

Article 36 Supervisory review process

Article 37 Capital add-on

Article 38 Supervision of outsourced functions and activities

Article 39 Transfer of portfolio

Division

CHAPTER IV Conditions governing business

Section 1 Responsibility of the administrative, management or supervisory body

Article 40 Responsibility of the administrative, management or supervisory body

Division

Section 2 System of governance

Article 41 General governance requirements

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Article 42 Fit and proper requirements for persons who effectively run the undertaking or have other key functions

Article 43 Proof of good repute

Division

Article 44 Risk management

Article 45 Own risk and solvency assessment

Article 46 Internal control

Division

Article 47 Internal audit

Division

Article 48 Actuarial function

Article 49 Outsourcing

Article 50 Implementing measures

Section 3 Public disclosure

Article 51 Report on solvency and financial condition: contents

Article 52 Information for and reports by CEIOPS

Article 53 Report on solvency and financial condition: applicable principles

Article 54 Report on solvency and financial condition: updates and additional voluntary information

Article 55 Report on solvency and financial condition: policy and approval

Division

Article 56 Solvency and financial condition report: implementing measures

Division

Section 4 Qualifying holdings

Article 57 Acquisitions

Division

Article 58 Assessment period

Article 59 Assessment

Article 60 Acquisitions by regulated financial undertakings

Article 61 Information to the supervisory authority by the insurance or reinsurance undertaking

Division

Article 62 Qualifying holdings, powers of the supervisory authority

Article 63 Voting rights

Division

Section 5 Professional secrecy, exchange of information and promotion of supervisory convergence

Article 64 Professional secrecy

Division

Article 65 Exchange of information between supervisory authorities of Member States

Division

Article 66 Cooperation agreements with third countries

Division

Article 67 Use of confidential information

Article 68 Exchange of information with other authorities

Article 69 Disclosure of information to government administrations responsible for financial legislation

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Article 70 Transmission of information to central banks and monetary authorities

Article 71 Supervisory convergence

Division

Section 6 Duties of auditors

Article 72 Duties of auditors

CHAPTER V Pursuit of life and non-life insurance activity

Article 73 Pursuit of life and non-life insurance activity

Article 74 Separation of life and non-life insurance management

CHAPTER VI Rules relating to the valuation of assets and liabilities, technical provisions, own funds, Solvency Capital Requirement, Minimum Capital Requirement and investment rules

Section 1 Valuation of assets and liabilities

Article 75 Valuation of assets and liabilities

Section 2 Rules relating to technical provisions

Article 76 General provisions

Division

Article 77 Calculation of technical provisions

Division

Article 78 Other elements to be taken into account in the calculation of technical provisions

Article 79 Valuation of financial guarantees and contractual options included in insurance and reinsurance contracts

Division

Article 80 Segmentation

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Article 81 Recoverables from reinsurance contracts and special purpose vehicles

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Article 82 Data quality and application of approximations, including case-by-case approaches, for technical provisions

Division

Article 83 Comparison against experience

Division

Article 84 Appropriateness of the level of technical provisions

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Article 85 Increase of technical provisions

Division

Article 86 Implementing measures

Subsection 1 Determination of own funds

Article 87 Own funds

Division

Article 88 Basic own funds

Article 89 Ancillary own funds

Article 90 Supervisory approval of ancillary own funds

Article 91 Surplus funds

Division

Article 92 Implementing measures

Subsection 2 Classification of own funds

Article 93 Characteristics and features used to classify own funds into tiers

Article 94 Main criteria for the classification into tiers

Division

Article 95 Classification of own funds into tiers

Division

Article 96 Classification of specific insurance own-fund items

Article 97 Implementing measures

Subsection 3 Eligibility of own funds

Article 98 Eligibility and limits applicable to Tiers 1, 2 and 3

Article 99 Implementing measures

Section 4 Solvency capital requirement

Subsection 1 General provisions for the solvency capital requirement using the standard formula or an internal model

Article 100 General provisions

Division

Article 101 Calculation of the Solvency Capital Requirement

Article 102 Frequency of calculation

Division

Subsection 2 Solvency capital requirement standard formula

Article 103 Structure of the standard formula

Article 104 Design of the Basic Solvency Capital Requirement

Article 105 Calculation of the Basic Solvency Capital Requirement

Article 106 Calculation of the equity risk sub-module: symmetric adjustment mechanism

Division

Article 107 Capital requirement for operational risk

Division

Article 108 Adjustment for the loss-absorbing capacity of technical provisions and deferred taxes

Division

Article 109 Simplifications in the standard formula

Division

Article 110 Significant deviations from the assumptions underlying the standard formula calculation

Division

Article 111 Implementing measures

Subsection 3 Solvency capital requirement full and partial internal models

Article 112 General provisions for the approval of full and partial internal models

Article 113 Specific provisions for the approval of partial internal models

Article 114 Implementing measures

Article 115 Policy for changing the full and partial internal models

Division

Article 116 Responsibilities of the administrative, management or supervisory bodies

Division

Article 117 Reversion to the standard formula

Division

Article 118 Non-compliance of the internal model

Division

Article 119 Significant deviations from the assumptions underlying the standard formula calculation

Article 121 Statistical quality standards

Division

Article 122 Calibration standards

Division

Article 123 Profit and loss attribution

Division

Article 124 Validation standards

Division

Article 125 Documentation standards

Division

Article 126 External models and data

Division

Article 127 Implementing measures

Division

Section 5 Minimum capital requirement

Article 128 General provisions

Division

Article 129 Calculation of the Minimum Capital Requirement

Article 130 Implementing measures

Division

Article 131 Transitional arrangements regarding compliance with the Minimum Capital Requirement

Division

Section 6 Investments

Article 132 Prudent person principle

Division

Article 133 Freedom of investment

Division

Article 134 Localisation of assets and prohibition of pledging of assets

Division

Article 135 Implementing measures

CHAPTER VII Insurance and reinsurance undertakings in difficulty or in an irregular situation

Article 136 Identification and notification of deteriorating financial conditions by the insurance and reinsurance undertaking

Division

Article 137 Non-Compliance with technical provisions

Division

Article 138 Non-Compliance with the Solvency Capital Requirement

Division

Article 139 Non-Compliance with the Minimum Capital Requirement

Division

Article 140 Prohibition of free disposal of assets located within the territory of a Member State

Division

Article 141 Supervisory powers in deteriorating financial conditions

Division

Article 142 Recovery plan and finance scheme

Article 143 Implementing measures

Division

Article 144 Withdrawal of authorisation

CHAPTER VIII Right of establishment and freedom to provide services

Section 1 Establishment by insurance undertakings

Article 145 Conditions for branch establishment

Article 146 Communication of information

Division

Section 2 Freedom to provide services: by insurance undertakings

Subsection 1 General provisions

Article 147 Prior notification to the home Member State

Division

Article 148 Notification by the home Member State

Article 149 Changes in the nature of the risks or commitments

Division

Subsection 2 Third party motor vehicle liability

Article 150 Compulsory insurance on third party motor vehicle liability

Division

Article 151 Non-discrimination of persons pursuing claims

Division

Article 152 Representative

Division

Section 3 Competencies of the supervisory authorities of the host member state

Subsection 1 Insurance

Article 153 Language

Division

Article 154 Prior notification and prior approval

Division

Article 155 Insurance undertakings not complying with the legal provisions

Division

Article 156 Advertising

Division

Article 157 Taxes on premiums

Division

Subsection 2 Reinsurance

Article 158 Reinsurance undertakings not complying with the legal provisions

Division

Section 4 Statistical information

Article 159 Statistical information on cross-border activities

Section 5 Treatment of contracts of branches in winding-up proceedings

Article 160 Winding-up of insurance undertakings

Division

Article 161 Winding-up of reinsurance undertakings

Division

CHAPTER IX Branches established within the community and belonging to insurance or reinsurance undertakings with head offices situated outside the community

Section 1 Taking-up of business

Article 162 Principle of authorisation and conditions

Article 163 Scheme of operations of the branch

Article 164 Transfer of portfolio

Article 165 Technical provisions

Division

Article 166 Solvency Capital Requirement and Minimum Capital Requirement

Division

Article 167 Advantages to undertakings authorised in more than one Member State

Article 168 Accounting, prudential and statistical information and undertakings in difficulty

Division

Article 169 Separation of non-life and life business

Division

Article 170 Withdrawal of authorisation for undertakings authorised in more than one Member State

Division

Article 171 Agreements with third countries

Division

Section 2 Reinsurance

Article 172 Equivalence

Division

Article 173 Prohibition of pledging of assets

Division

Article 174 Principle and conditions for conducting reinsurance activity

Division

Article 175 Agreements with third countries

CHAPTER X Subsidiaries of insurance and reinsurance undertakings governed by the laws of a third country and acquisitions of holdings by such undertakings

Article 176 Information from Member States to the Commission

Division

Article 177 Third-country treatment of Community insurance and reinsurance undertakings

TITLE II SPECIFIC PROVISIONS FOR INSURANCE AND REINSURANCE

CHAPTER I Applicable law and conditions of direct insurance contracts

Section 1 Applicable law

Article 178 Applicable Law

Division

Section 2 Compulsory insurance

Article 179 Related obligations

Section 3 General good

Article 180 General good

Division

Section 4 Conditions of insurance contracts and scales of premiums

Article 181 Non-life insurance

Division

Article 182 Life insurance

Division

Section 5 Information for policy holders

Subsection 1 Non-life insurance

Article 183 General Information for policy holders

Article 184 Additional information in the case of non-life insurance offered under the right of establishment or the freedom to provide services

Division

Subsection 2 Life insurance

Article 185 Information for policy holders

Article 186 Cancellation period

CHAPTER II Provisions specific to non-life insurance

Section 1 General provisions

Article 187 Policy Conditions

Division

Article 188 Abolition of monopolies

Division

Article 189 Participation in national guarantee schemes

Division

Section 2 Community co-insurance

Article 190 Community co-insurance operations

Article 191 Participation in Community co-insurance

Division

Article 192 Technical provisions

Division

Article 193 Statistical data

Division

Article 194 Treatment of co-insurance contracts in winding-up proceedings

Division

Article 195 Exchange of information between supervisory authorities

Division

Article 196 Cooperation on implementation

Division

Section 3 Assistance

Article 197 Activities similar to tourist assistance

Division

Section 4 Legal expenses insurance

Article 198 Scope of this Section

Article 199 Separate contracts

Division

Article 200 Management of claims

Division

Article 201 Free choice of lawyer

Article 202 Exception to the free choice of lawyer

Article 203 Arbitration

Division

Article 204 Conflict of interest

Division

Article 205 Abolition of specialisation of legal expenses insurance

Division

Section 5 Health insurance

Article 206 Health insurance as an alternative to social security

Section 6 Insurance against accidents at work

Article 207 Compulsory insurance against accidents at work

Division

CHAPTER III Provisions specific to life insurance

Article 208 Prohibition on compulsory ceding of part of underwriting

Division

Article 209 Premiums for new business

Division

CHAPTER IV Rules specific to reinsurance

Article 210 Finite reinsurance

Article 211 Special purpose vehicles

TITLE III SUPERVISION OF INSURANCE AND REINSURANCE UNDERTAKINGS IN A GROUP

CHAPTER I Group supervision: definitions, cases of application, scope and levels

Section 1 Definitions

Article 212 Definitions

Section 2 Cases of application and scope

Article 213 Cases of application of group supervision

Article 214 Scope of group supervision

Article 215 Ultimate parent undertaking at Community level

Division

Article 216 Ultimate parent undertaking at national level

Division

Article 217 Parent undertaking covering several Member States

Division

CHAPTER II Financial position

Section 1 Group solvency

Subsection 1 General provisions

Article 218 Supervision of group solvency

Division

Article 219 Frequency of calculation

Division

Subsection 2 Choice of calculation method and general principles

Article 220 Choice of method

Division

Article 221 Inclusion of proportional share

Article 222 Elimination of double use of eligible own funds

Article 223 Elimination of the intra-group creation of capital

Article 224 Valuation

Division

Subsection 3 Application of the calculation methods

Division

Article 226 Intermediate insurance holding companies

Division

Article 229 Non-availability of the necessary information

Division

Subsection 4 Calculation methods

Article 230 Method 1 (Default method): Accounting consolidation-based method

Article 231 Group internal model

Article 232 Group capital add-on

Article 233 Method 2 (Alternative method): Deduction and aggregation method

Article 234 Implementing measures

Division

Subsection 5 Supervision of group solvency for insurance and reinsurance undertakings that are subsidiaries of an insurance holding company

Article 235 Group solvency of an insurance holding company

Division

Subsection 6 Supervision of group solvency for groups with centralised risk management

Article 236 Subsidiaries of an insurance or reinsurance undertaking: conditions

Article 237 Subsidiaries of an insurance or reinsurance undertaking: decision on the application

Article 238 Subsidiaries of an insurance or reinsurance undertaking: determination of the Solvency Capital Requirement

Division

Article 239 Subsidiaries of an insurance or reinsurance undertaking: non-compliance with the Solvency and Minimum Capital Requirements

Division

Article 240 Subsidiaries of an insurance or reinsurance undertaking: end of derogations for a subsidiary

Article 241 Subsidiaries of an insurance or reinsurance undertaking: implementing measures

Article 243 Subsidiaries of an insurance holding company

Division

Section 2 Risk concentration and intra-group transactions

Article 244 Supervision of risk concentration

Division

Article 245 Supervision of intra-group transactions

Division

Section 3 Risk management and internal control

Article 246 Supervision of the system of governance

CHAPTER III Measures to facilitate group supervision

Article 247 Group Supervisor

Article 248 Rights and duties of the group supervisor and the other supervisors College of supervisors

Article 249 Cooperation and exchange of information between supervisory authorities

Article 250 Consultation between supervisory authorities

Article 251 Requests from the group supervisor to other supervisory authorities

Division

Article 252 Cooperation with authorities responsible for credit institutions and investment firms

Division

Article 253 Professional secrecy and confidentiality

Division

Article 254 Access to information

Division

Article 255 Verification of information

Article 256 Group solvency and financial condition report

Article 257 Administrative, management or supervisory body of insurance holding companies

Division

Article 258 Enforcement measures

Article 259 Reporting of CEIOPS

CHAPTER IV Third countries

Article 260 Parent undertakings outside the Community: verification of equivalence

Division

Article 261 Parent undertakings outside the Community: equivalence

Division

Article 262 Parent undertakings outside the Community: absence of equivalence

Article 263 Parent undertakings outside the Community: levels

Division

Article 264 Cooperation with third-country supervisory authorities

CHAPTER V Mixed-activity insurance holding companies

Article 265 Intra-group transactions

Division

Article 266 Cooperation with third countries

Division

TITLE IV REORGANISATION AND WINDING-UP OF INSURANCE UNDERTAKINGS

CHAPTER I Scope and definitions

Article 267 Scope of this Title

Article 268 Definitions

CHAPTER II Reorganisation measures

Article 269 Adoption of reorganisation measures applicable law

Division

Article 270 Information to the supervisory authorities

Division

Article 271 Publication of decisions on reorganisation measures

Division

Article 272 Information to known creditors right to lodge claims

Division

CHAPTER III Winding-up proceedings

Article 273 Opening of winding-up proceedings information to the supervisory authorities

Division

Article 274 Applicable law

Article 275 Treatment of insurance claims

Article 276 Special register

Article 277 Subrogation to a guarantee scheme

Division

Article 278 Representation of preferential claims by assets

Division

Article 279 Withdrawal of the authorisation

Division

Article 280 Publication of decisions on winding-up proceedings

Division

Article 281 Information to known creditors

Division

Article 282 Right to lodge claims

Article 283 Languages and form

Article 284 Regular information to the creditors

Division

CHAPTER IV Common provisions

Article 285 Effects on certain contracts and rights

Article 286 Rights in rem of third parties

Article 287 Reservation of title

Division

Article 288 Set-off

Division

Article 289 Regulated markets

Division

Article 290 Detrimental acts

Division

Article 291 Protection of third-party purchasers

Article 292 Lawsuits pending

Division

Article 293 Administrators and liquidators

Division

Article 294 Registration in a public register

Division

Article 295 Professional secrecy

Division

Article 296 Treatment of branches of third-country insurance undertakings

Division

TITLE V OTHER PROVISIONS

Article 297 Right to apply to the courts

Division

Article 298 Cooperation between the Member States and the Commission

Division

Article 299 Euro

Division

Article 300 Revision of amounts expressed in euro

Division

Article 301 Committee procedure

Division

Article 302 Notifications submitted prior to entry into force of the laws, regulations and administrative provisions necessary to comply with Articles 57 to 63

Division

Article 303 Amendments to Directive 2003/41/EC

Division

Article 304 Duration-based equity risk sub-module

TITLE VI TRANSITIONAL AND FINAL PROVISIONS

CHAPTER I Transitional provisions

Section 1 Insurance

Article 305 Derogations and abolition of restrictive measures

Division

Article 306 Rights acquired by existing branches and insurance undertakings

Division

Section 2 Reinsurance

Article 307 Transitional period for Articles 57(3) and 60(6) of Directive 2005/68/EC

Division

Article 308 Right acquired by existing reinsurance undertakings

Division

CHAPTER II Final provisions

Article 309 Transposition

Division

Article 310 Repeal

Division

Article 311 Entry into force

Division

Article 312 Addressees

Division

Preamble

ANNEX I CLASSES OF NON-LIFE INSURANCE

A. Classification of risks according to classes of insurance

1. Accident (including industrial injury and occupational diseases):

Division

2. Sickness:

Division

3. Land vehicles (other than railway rolling stock)

Division

4. Railway rolling stock

Division

5. Aircraft

Division

6. Ships (sea, lake and river and canal vessels)

Division

7. Goods in transit (including merchandise, baggage, and all other goods)

Division

8. Fire and natural forces

Division

9. Other damage to property

Division

10. Motor vehicle liability

Division

11. Aircraft liability

Division

12. Liability for ships (sea, lake and river and canal vessels)

Division

13. General liability

16. Miscellaneous financial loss:

B. Description of authorisations granted for more than one class of insurance

ANNEX II CLASSES OF LIFE INSURANCE

ANNEX III LEGAL FORMS OF UNDERTAKINGS

A. Forms of non-life insurance undertaking:

B. Forms of life insurance undertaking:

C. Forms of reinsurance undertaking:

ANNEX IV SOLVENCY CAPITAL REQUIREMENT (SCR) STANDARD FORMULA

1. Calculation of the Basic Solvency Capital Requirement

Division

Table

Division

2. Calculation of the non-life underwriting risk module

Division

3. Calculation of the life underwriting risk module

Division

4. Calculation of the market risk module

Division

ANNEX V GROUPS OF NON-LIFE INSURANCE CLASSES FOR THE PURPOSES OF ARTICLE 159

Division

ANNEX VI

PART A Repealed Directives with list of their successive amendments

Division

Table

Division

PART B List of time-limits for transposition into national law

Division

Table

Division

ANNEX VII CORRELATION TABLE

Table

Division