60 Amendments of Paul TANG related to 2021/0295(COD)
Amendment 293 #
Proposal for a directive
Recital 78
Recital 78
(78) Achieving the environmental and climate ambitions of the Green Deal requires the channelling of large amounts of investments from the private sector, including from insurance and reinsurance companies, towards sustainable investments. The provisions of Directive 2009/138/EC on the capital requirements should not impede sustainable investments by insurance and reinsurance undertakings but should reflect the full risk of investments in environmentally harmful activities. While there is not sufficient evidence at this stage on risk differentials between environmentally or socially harmful and other investments, such evidence may become available over the next years. In order to ensure an appropriate assessment of the relevant evidence, EIOPA should monitor and report by 2023 on the evidence on the risk profile of environmentally or socially harmful investments. Where appropriate, EIOPA’s report should advise on changes to Directive 2009/138/EC and to the delegated and implementing acts adopted pursuant to that Directive. EIOPA may also inquire whether it would be appropriate that certain environmental risks, other than climate change-related, should be taken into account and how. For instance, if evidence so suggests, EIOPA could analyse the need for extending scenario analyGiven the EU's ambition based on Regulation (EU) 2021/1119 ("Climate Law"), we already know that certain fossil intensive assets will become stranded if no appropriate transition is adhered to. For this reason, undertakings should develop and implement transition plans stipulating their pathway to adhere to the EU's Climate Law and to divest from activities that significantly harm environmental objectives as outlined in Article 17 of Regulation (EU) 2020/852 (Taxonomy Regulation). Significant divergences from these transition plans should indicate higher risk of exposure to stranded assets as introduced by this Directive in the context of climate change-related risks to other environmental risknd therefore have an impact on an undertaking's capital requirements.
Amendment 301 #
Proposal for a directive
Recital 79 a (new)
Recital 79 a (new)
(79 a) Stewardship policies are a very effective way to align the activity of an investee company with the long-term interests of the policy holders of an insurance undertaking. As such, insurance undertakings should develop and report on their stewardship policies.
Amendment 304 #
Proposal for a directive
Recital 82 a (new)
Recital 82 a (new)
(82 a) The risks, and the risk-weights, associated with securitisation products, and in particular those adhering to the principles of simple, transparent and standardized securitisation, deserve proper re-evaluation. Therefore based on a study by EIOPA the Commission should re-calibrate the risk-weights associated with securitisation investments.
Amendment 325 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 a (new)
Article 13 – paragraph 1 – point 41 a (new)
(41a) ‘science-based target’ is a target defined on the basis of conclusive scientific evidence and with independent scientific validation, that when achieved by the undertaking ensures that the undertaking’s impacts on sustainability matters, as referred to in Articles 132 and 44(1), will be aligned with the sustainability goals and criteria of the European Union for the specific sustainability matters;
Amendment 331 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 b (new)
Article 13 – paragraph 1 – point 41 b (new)
(41b) ‘climate neutrality’ shall be read in accordance with the Article 2 of the Regulation (EU) 2021/1119 (“European Climate Law”);
Amendment 334 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 c (new)
Article 13 – paragraph 1 – point 41 c (new)
(41c) ‘fossil fuel sectors’ are sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62) of Regulation (EU) 2018/1999 of the European Parliament and of the Council;
Amendment 336 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 d (new)
Article 13 – paragraph 1 – point 41 d (new)
(41d) ‘sustainability risk’ means: (a) as regards investments, sustainability risk as defined in Article 2, point (22), of Regulation (EU) 2019/2088 of the European Parliament and of the Council; (b) as regards liabilities, an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the liability;
Amendment 341 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 e (new)
Article 13 – paragraph 1 – point 41 e (new)
(41e) ‘sustainability factor’ means sustainability factor as defined in Article 2, point (24), of Regulation (EU) 2019/2088;
Amendment 343 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 f (new)
Article 13 – paragraph 1 – point 41 f (new)
(41f) ‘stewardship’ is the engagement strategy of the insurance or reinsurance undertaking to steer the activities of the assets it is holding (where its shareholders’ rights allow) and to influence the strategy and business of the firms in which it is investing, in order to progress towards sustainable economic activities and towards a more positive impact on sustainability factors;
Amendment 427 #
Proposal for a directive
Article 1 – paragraph 1 – point 20 a (new)
Article 1 – paragraph 1 – point 20 a (new)
Directive 2009/128/EC
Article 37a (new)
Article 37a (new)
(20 a) the following Article 37a is inserted: ‘Article 37a Macroprudential capital add-on Member States shall ensure that supervisory authorities, in agreement with EIOPA, should be able to impose a capital add-on for system risk, when they assess activity or behaviour based sources of systemic risk. The Commission shall adopt a delegated act to define under which conditions supervisory authorities are empowered to impose this capital add- on, on the procedures for decisions to trigger, set, calculate and remove capital add-ons for systemic risk.’
Amendment 433 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 – subparagraph 1
Article 41 – paragraph 3 – subparagraph 1
3. Insurance and reinsurance undertakings shall have written policies in relation to at least risk management, internal control, internal audit, remuneration, stewardship and, where relevant, outsourcing. They shall have a written transition plan, as described under Article 44a. They shall ensure that those policies and that plan are implemented. Those written policies and that transition plan shall be reviewed at least annually. The stewardship policy shall include a report of the impact of the policy in the last financial reporting period.
Amendment 434 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 – subparagraph 1
Article 41 – paragraph 3 – subparagraph 1
3. Insurance and reinsurance undertakings shall have written policies in relation to at least risk management, internal control, internal audit, remuneration, and, where relevant, outsourcing. They shall ensure that those policies are implementedhave a written transition plan, as described under Article 44a. They shall ensure that those policies are implemented, and that reasonable steps are taken to implement the transition plan. Those written policies and that transition plan shall be reviewed at least annually.
Amendment 440 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 a (new)
Article 41 – paragraph 3 a (new)
3a. The system of governance shall ensure that the administrative, management or supervisory body is directly responsible for the sustainability risk management system described under Article 44(3a), including the successful implementation of the transition plan described under Article 44a.
Amendment 441 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 a (new)
Article 41 – paragraph 3 a (new)
3a. The system of governance shall ensure that the administrative, management or supervisory body is directly responsible for the sustainability risk management system described under Article 44(3a), including the successful implementation of the transition plan described under Article 44a.
Amendment 444 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 c a (new)
Article 1 – paragraph 1 – point 21 c a (new)
Directive 2009/128/EC
Article 41 – paragraphs 5 a (new), 5 b (new), 5 c (new), 5 d (new)
Article 41 – paragraphs 5 a (new), 5 b (new), 5 c (new), 5 d (new)
Amendment 446 #
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point - a (new)
Article 1 – paragraph 1 – point 22 – point - a (new)
Directive 2009/138/EC
Article 42 – paragraph 1 – point a
Article 42 – paragraph 1 – point a
(-a) paragraph 1, point (a) is replaced by the following: "(a) their professional qualifications, knowledge and experience, including in the field of sustainability risks, are adequate to enable sound and prudent management (fit); and (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)" Or. en
Amendment 451 #
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point b
Article 1 – paragraph 1 – point 22 – point b
Directive 2009/138/EC
Article 42 – paragraph 4
Article 42 – paragraph 4
4. Where a person who effectively runs the undertaking or has other key functions does not fulfil the requirements set out in paragraph 1, the supervisory authorities shall have the power to require the insurance and reinsurance undertaking to remove such person from that position.;
Amendment 457 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b a (new)
Article 1 – paragraph 1 – point 23 – point b a (new)
Directive 2009/138/EC
Article 44 – paragraph 2 b (new)
Article 44 – paragraph 2 b (new)
(ba) the following paragraph is inserted: "2b. As regards underwriting, insurance and reinsurance undertakings shall ensure that, in accordance with Article 44a, its business model and strategy for underwriting portfolio are aligned with the objective to achieve climate neutrality by 2050 at the latest, set out in Regulation (EU)2021/1119 of the European Parliament and of the Council of 30 June 2021(“European Climate Law”), as regards the undertaking’s operations and compatible with the transition to a sustainable economy and with the limiting of global warming to 1,5 °C in line with the Paris Agreement with no or limited overshoot and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change."
Amendment 458 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b a (new)
Article 1 – paragraph 1 – point 23 – point b a (new)
Directive 2009/138/EC
Article 44 – paragraph 2 b (new)
Article 44 – paragraph 2 b (new)
(ba) the following paragraph is added: "2b. As regards underwriting, insurance and reinsurance undertakings shall ensure that, in accordance with Article 44a, its business model and strategy for underwriting are aligned with the objective to achieve climate neutrality by 2050 at the latest, set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 (“European Climate Law”), as regards the undertaking’s operations and will reduce significantly by 2030 and completely eliminate by 2050 the supporting of economic activities that significantly harm environmental objectives as defined by article 17 of Regulation (EU) 2020/852."
Amendment 461 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b b (new)
Article 1 – paragraph 1 – point 23 – point b b (new)
Directive 2009/138/EC
Article 44 – paragraph 2 c (new)
Article 44 – paragraph 2 c (new)
(bb) the following paragraph is inserted: "2c. As regards investment, insurance and reinsurance undertakings shall ensure that, in accordance with Article 44a, its business model and strategy for investment portfolio are aligned with the objective to achieve climate neutrality by 2050 at the latest, set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 (“European Climate Law”), as regards the undertaking’s operations and compatible with the transition to a sustainable economy and with the limiting of global warming to 1,5 °C in line with the Paris Agreement with no or limited overshoot and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change."
Amendment 462 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b b (new)
Article 1 – paragraph 1 – point 23 – point b b (new)
Directive 2009/138/EC
Article 44 – paragraph 2 c (new)
Article 44 – paragraph 2 c (new)
(bb) the following paragraph is inserted: "2c. As regards investment, insurance and reinsurance undertakings shall ensure that, in accordance with Article44a, its business model and strategy for investment portfolio are aligned with the objective to achieve climate neutrality by 2050 at the latest, set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 (“European Climate Law”), as regards the undertaking’s operations and will reduce significantly by 2030 and completely eliminate by 2050 the financing of economic activities that significantly harm environmental objectives as defined by Article 17 of Regulation (EU) 2020/852."
Amendment 464 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b b (new)
Article 1 – paragraph 1 – point 23 – point b b (new)
Directive 2009/138/EC
Article 44 – paragraph 3 a (new)
Article 44 – paragraph 3 a (new)
(bb) the following paragraph is inserted: "3a. The risk management system shall cover any sustainability risks to which the insurance or reinsurance undertaking is exposed within the areas set out at paragraph 2 above and shall consider the principal adverse impacts of the insurance or reinsurance undertaking, including the principal adverse impacts of the companies and activities for which the undertaking provides finance or underwriting services within its asset portfolio and insurance portfolio, on sustainability factors. The written policy on risk management referred to in Article 41(3) shall include policies relating to sustainability risks and sustainability factors, as well as a stewardship policy. The stewardship policy shall include a report of the impact of the policy in the last financial reporting period."
Amendment 469 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b c (new)
Article 1 – paragraph 1 – point 23 – point b c (new)
Directive 2009/138/EC
Article 44 – paragraph 5 a (new)
Article 44 – paragraph 5 a (new)
(bc) the following paragraph is added: "5a. The written policy on remuneration referred to at Article 41(3) shall promote sound and effective risk management in line with the written policy on risk management referred to in Article 41(3), including in relation to sustainability risks and the adverse impacts of the insurance or reinsurance undertaking on sustainability factors. The Commission shall adopt delegated acts in accordance with Article 301a to specify that where undertaking’s remuneration schemes include both fixed and variable components, variable remuneration component should be not less than 50 percentage points linked to achievement of the targets set as part of the transition plan of the undertaking, implemented in accordance with Articles 44(2b), 44(2c) and 44a."
Amendment 473 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 a (new)
Article 1 – paragraph 1 – point 23 a (new)
Directive 2009/138/EC
Article 44 a (new)
Article 44 a (new)
(23a) the following Article is inserted: 'Article 44a Transition plans 1. Insurance and reinsurance undertakings shall have and shall implement a written transition plan covering both underwriting and investment activities, with intermediate implementing actions and specific science-based short-term, medium- and long-term targets, including absolute emission reduction targets for attributable greenhouse gas (GHG) emissions for 2025 and 2030, reviewed every year up to 2050 that are in line with the EU's ambitions under Regulation (EU) 2021/1119. The plans shall also outline the undertakings pathway to reduce and eliminate the financing of activities that cause significant harm to environmental objectives as outlined by Article 17 of Regulation (EU) 2019/852. They shall integrate their transition plan within their underwriting and investment strategy and decisions. 2. The transition plan shall be reviewed at least annually. It shall be subject to prior approval by the administrative, management or supervisory body and be adapted in view of any significant changes affecting the transition plan or its implementation. 3. The transition plan shall be well integrated into the organisational structure and in the decision-making processes of the insurance or reinsurance undertaking. The system of governance required under Article 41 shall include a clear allocation and appropriate segregation of responsibilities for implementing the transition plan and provide for proper consideration of the implementation of the transition plan by the persons who effectively run the undertaking or have other key functions. 4.The transition plan shall be integrated into the risk management system required under Article 44, and particularly under Article 44 (2b) and 44 (2c), including by identifying, measuring, monitoring, managing and reporting matters that pose a risk to the successful implementation of the transition plan.'
Amendment 474 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 a (new)
Article 1 – paragraph 1 – point 23 a (new)
Directive 2009/138/EC
Article 44 a (new)
Article 44 a (new)
(23a) the following Article is inserted: 'Article 44a Transition plan 1. Insurance and reinsurance undertakings shall have a written transition plan covering both underwriting and investment activities, with intermediate implementing actions and specific science-based short-term, medium- and long-term targets, including absolute emission reduction targets for attributable greenhouse gas (GHG)emissions for 2025 and 2030, reviewed every year up to 2050. They shall take reasonable steps to ensure that this transition plan is implemented. They shall integrate their transition plan within their underwriting and investment strategy and decisions. 2. The transition plan shall be reviewed at least annually. It shall be subject to prior approval by the administrative, management or supervisory body and be adapted in view of any significant changes affecting the transition plan or its implementation. 3. The transition plan shall be well integrated into the organisational structure and in the decision-making processes of the insurance or reinsurance undertaking. The system of governance required under Article 41 shall include a clear allocation and appropriate segregation of responsibilities for implementing the transition plan and provide for proper consideration of the implementation of the transition plan by the persons who effectively run the undertaking or have other key functions. 4. The transition plan shall be integrated into the risk management system required under Article 44, and particularly under Article 44 (2b) and 44 (2c), including by identifying, measuring, monitoring, managing and reporting matters that pose a risk to the successful implementation of the transition plan.'
Amendment 478 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point a
Article 1 – paragraph 1 – point 24 – point a
Directive 2009/138/EC
Article 45 – paragraph 1 – subparagraph 2 – point d
Article 45 – paragraph 1 – subparagraph 2 – point d
(d) consideration and analysisssessment of the macroeconomic situation, and possible macroeconomic, geopolitical, environmental and financial markets’ developments, and, upon a reasoned request of the supervisory authority, macroprudential concerns, 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;
Amendment 482 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b
Article 1 – paragraph 1 – point 24 – point b
Directive 2009/138/EC
Article 45 – paragraph 1a – subparagraph 1 – introductory part
Article 45 – paragraph 1a – subparagraph 1 – introductory part
1a. For the purpose of paragraph 1, points (d) and (e), macroeconomic, geopolitical, environmental and financial markets’ developments shall include, at least, changes in the following:
Amendment 485 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b
Article 1 – paragraph 1 – point 24 – point b
Directive 2009/138/EC
Article 45 – paragraph 1a – subparagraph 2
Article 45 – paragraph 1a – subparagraph 2
For the purpose of the paragraph 1, point (d), macroprudential concerns shall include, at leastmongst others, plausible unfavourable future scenarios and risks related to the credit cycle and economic downturn, climate risks, herding behaviour in investments or excessive exposure concentrations at the sectoral level.
Amendment 489 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b a (new)
Article 1 – paragraph 1 – point 24 – point b a (new)
Directive 2009/138/EC
Article 45 – paragraph 2
Article 45 – paragraph 2
(ba) paragraph 2 is replaced by the following: "2. For the purposes of paragraph 1(a), the undertaking concerned shall have in place processes which are proportionate to the nature, scale and complexity of the risks inherent in its business and which enable it to properly identify and assess the risks it faces in the short and long term and to which it is or could be exposed, including sustainability risk. The undertaking shall demonstrate the methods used in that assessment. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)" Or. en
Amendment 504 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 5
Article 45a – paragraph 5
Amendment 510 #
Proposal for a directive
Article 1 – paragraph 1 – point 25 a (new)
Article 1 – paragraph 1 – point 25 a (new)
Directive 2009/138/EC
Article 50 – paragraph 1
Article 50 – paragraph 1
(25a) paragraph 1 of Article 50 is replaced by the following: "1. The Commission shall adopt delegated acts in accordance with Article 301a to further specify the following: (a) the elements of the systems referred to in Articles 41, 44, 46 and 47, and in particular the areas to be covered by the asset–liability management and investment policy, as referred to in Article 44(2), of insurance and reinsurance undertakings; (b) the functions referred to in Articles 44, 46, 47 and 48. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630); (c) minimum standards and reference methodologies for transition plans and intermediate targets both on emissions and on significantly harmful economic activities as referred to in Articles 44(2b), 44(2c) and 44a; (d) minimum standards and reference methodologies on how insurance and reinsurance undertakings should integrate sustainability risks and adverse impacts on sustainability factors into their risk management systems in accordance with Article 44, including in relation to the types of sustainability risks and sustainability factors that should be considered by insurance and reinsurance undertakings and processes for identifying and managing adverse impacts on sustainability factors The Commission shall, at least every three years after its date of application, review any delegated act adopted pursuant to this Article, paragraph 1 points (c) and (d), taking into consideration the technical advice of the European Financial Reporting Advisory Group (EFRAG), and where necessary amend such delegated act to take into account relevant developments, including developments with regard to international standards. 1a. When adopting delegated acts pursuant to paragraph 1 points (c) and (d), the Commission shall take into account the sustainability reporting standards adopted in accordance with the Directive2014/95/EU. " Or. en
Amendment 514 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – point b
Article 51 – paragraph 1a – point b
(b) a brief description of the capital management and the risk profile of the undertaking, including in relation to sustainability risks and the principal adverse impacts of the insurance or reinsurance undertaking on sustainability factors, and with reference to how the undertaking’s stewardship policy has contributed to addressing these impacts.;
Amendment 521 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – point b a (new)
Article 51 – paragraph 1a – point b a (new)
(b a) where the undertaking conducts a climate change scenario analysis, a description of the results of the latest climate change scenario analysis described in Article 45a, and a description of how the transition plan of the undertaking described at Article 44a is addressing and reducing its exposure to climate change risks;
Amendment 523 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point a
Article 51 – paragraph 1b – point a
(a) a description of the system of governance; including a description of the role of the administrative, management and supervisory bodies with regard to sustainability risks in line with article 41.
Amendment 525 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b a (new)
Article 51 – paragraph 1b a (new)
For the purposes of paragraph 1a, insurance and reinsurance undertakings may describe sustainability risks and the principal adverse impacts of the insurance or reinsurance undertaking on sustainability factors by clear cross- reference to sections of their management report containing relevant information.
Amendment 528 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi a (new)
Article 51 – paragraph 1b – point c – point vi a (new)
(vi a) climate and other sustainability targets and transition plan targets of the undertaking, including absolute carbon emission reduction targets for its underwriting and investment portfolios, submitted in accordance with Articles 44(2b) (new), 44(2c) (new) and 44a (new), and the progress made towards implementing them;
Amendment 535 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi b (new)
Article 51 – paragraph 1b – point c – point vi b (new)
(vi b) how the undertaking’s business model and strategy take account of sustainability risks faced by the undertaking;
Amendment 536 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi c (new)
Article 51 – paragraph 1b – point c – point vi c (new)
(vi c) the role of the administrative, management and supervisory bodies with regard to sustainability risks.
Amendment 550 #
Proposal for a directive
Article 1 – paragraph 1 – point 34 a (new)
Article 1 – paragraph 1 – point 34 a (new)
Directive 2009/138/EC
Article 64 – paragraph 3 a (new)
Article 64 – paragraph 3 a (new)
(34a) in Article 64, the following paragraph is added: "Paragraphs 1 to 3 of this Article shall not prevent the competent authorities from publishing the outcome of stress tests carried out in accordance with Article 34(4) of this Directive or Article 32 of Regulation (EU) No 1094/2010 or from transmitting the outcome of stress tests to EIOPA for the purpose of the publication by EIOPA of the results of Union-wide stress tests. "
Amendment 561 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 1 – subparagaph 1 – introductory part
Article 77a – paragraph 1 – subparagaph 1 – introductory part
1. The determination of the relevant risk-free interest rate term structure referred to in Article 77(2) shall make use of, and be consistent with, information derived from relevant financial instruments. That determination shall take into account relevant financial instruments of those maturities where the markets for those financial instruments are deep, liquid and transparent. The relevant risk-free interest rate term structure shall be extrapolated for maturities longer than the first smoothing point. The first smoothing point for a currency shall be 30 years and the longest maturity for which all of the following conditions are met:
Amendment 569 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 2 – subparagraph 1
Article 77a – paragraph 2 – subparagraph 1
2. For the purpose of paragraph 1, second subparagraph, any parameters determining the speed of the convergence of the forward rates towards the ultimate forward rate of the extrapolation may be chosen such that on [OP please insert date = application date] the risk-free interest rate term structure is sufficiently similar to the risk-free interest rate term structure on that date determined in line with the rules for the extrapolation applicable on [OP please insert date = one day before date of application]. Those parameters of the extrapolation shall be decreased linearly at the beginning of each calendar year, during a transitional period. The final parameters of the extrapolation shall be applied as of 1 January 20329.
Amendment 570 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 2 a (new)
Article 77a – paragraph 2 a (new)
2a. Undertakings should disclose in their public reporting the impact of the convergence speed parameter at 5% on their financial position. Undertakings that would not meet their Solvency Capital Requirement with a convergence speed parameter at 5%, should provide evidence to their supervisory authority and EIOPA that their dividend payments or other voluntary capital distribution do not put at risk the protection of policyholders and beneficiaries.
Amendment 574 #
Proposal for a directive
Article 1 – paragraph 1 – point 37 a (new)
Article 1 – paragraph 1 – point 37 a (new)
Directive 2009/138/EC
Article 77b – paragraph 1 – subparagraph 1 – point a a (new)
Article 77b – paragraph 1 – subparagraph 1 – point a a (new)
(37a) in subparagraph 1 of Article 77b(1) the following point is inserted: ‘(aa) the portfolio of assets assigned to cover the best estimate of the portfolio of insurance or reinsurance obligations does not include assets with exposure to the fossil sectors;’
Amendment 576 #
Proposal for a directive
Article 1 – paragraph 1 – point 38 – point b
Article 1 – paragraph 1 – point 38 – point b
Directive 2009/138/EC
Article 77d – paragraph 1 c (new)
Article 77d – paragraph 1 c (new)
1c. Insurance and reinsurance undertakings may, subject to prior approval by the supervisory authority, apply an undertaking-specific adjustment to this risk-corrected spread of the currency referred to in paragraph 3, under the condition that the information that is inherent to the relevant assets of the undertaking and that is reported by the undertaking in line with Article 35, paragraphs 1 to 4 is of sufficient quality to allow a robust and reliable calculation. This adjustment shall correspond to the lowest between 100% and the ratio of the risk-corrected spread calculated based on the undertaking’s portfolio of investments in debt instruments and the risk-corrected spread calculated based on the reference portfolio for the relevant currency. The risk-corrected spread based on the undertaking’s portfolio of investments in debt instruments shall be calculated in the same manner as the risk-corrected spread based on the reference portfolio for the relevant currency, but using undertaking- specific data on the weights and the average duration of the relevant sub- classes within the undertaking’s portfolio of investments in debt instruments for the relevant currency. Where the adjustment is lower than 100%, the volatility adjustment shall not be increased by a macro volatility adjustment as referred to in paragraph 4;
Amendment 598 #
Proposal for a directive
Article 1 – paragraph 1 – point 39 a (new)
Article 1 – paragraph 1 – point 39 a (new)
Directive 2009/138/EC
Article 78 – point 3 a (new)
Article 78 – point 3 a (new)
(39a) in Article 78, the following point is added: ‘(43a) quantitative and qualitative estimates of risk of loss or of adverse change in the values of insurance and reinsurance liabilities, resulting from inadequate pricing and provisioning assumptions due to internal or external factors, including sustainability risks;’
Amendment 601 #
Proposal for a directive
Article 1 – paragraph 1 – point 40 – point a – point ii
Article 1 – paragraph 1 – point 40 – point a – point ii
Directive 2009/138/EC
Article 86 – paragraph 1 – point b – point i
Article 86 – paragraph 1 – point b – point i
(i) the formula for the extrapolation referred to in Article 77a(1), including the parameters that determine the convergence speed of the extrapolation; in line with the market consistent valuation principle.
Amendment 602 #
Proposal for a directive
Article 1 – paragraph 1 – point 40 – point a – point ii a (new)
Article 1 – paragraph 1 – point 40 – point a – point ii a (new)
Directive 2009/138/EC
Article 86 – paragraph 1 – point d
Article 86 – paragraph 1 – point d
(iia) in Article 86, paragraph 1, point (d) is replaced by the following: "(d) the methods and assumptions to be used in the calculation of the risk margin including the determination of the amount of eligible own funds necessary to support the insurance and reinsurance obligations and the calibration of the cost-of-capital rate, as referred to in Article 77(5); (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)which should not be lower than 5%, as referred to in Article 77(5); " Or. en
Amendment 616 #
Proposal for a directive
Article 1 – paragraph 1 – point 43 a (new)
Article 1 – paragraph 1 – point 43 a (new)
(43a) in paragraph 4 of Article 101 the following subparagraph is added: ‘Market risk as referred to in point (d) of the first subparagraph shall include sustainability risks stemming from the current or prospective impacts of climate- related factors on the undertaking, its clients or invested assets, specifically covering risks related to the fossil fuel sector. Such risks can stem from a high prospect of assets becoming stranded due to the global transition away from fossil fuels, or from an increase risks of climate-related events such as forest fires or floods. Climate-related risks shall be deemed to be especially high when the undertaking fails to adhere to its transition plan as defined by Article 44b (new).’
Amendment 621 #
Proposal for a directive
Article 1 – paragraph 1 – point 43 b (new)
Article 1 – paragraph 1 – point 43 b (new)
Directive 2009/138/EC
Article 105 – paragraph 5 – subparagraph 2 a (new)
Article 105 – paragraph 5 – subparagraph 2 a (new)
(43b) in paragraph 5 of Article 105 the following subparagraph is added: ‘Equity and spread risk sub-modules referred to in points (a) and (d) of subparagraph 2 shall consider climate- related financial risks associated with fossil fuel sector exposures and exposures to economic activities that significantly harm environmental objectives as defined in Article 17 of Regulation (EU) 2019/852. Climate-related risks shall be deemed to be especially high when the undertaking fails to adhere to its transition plan as defined by Article 44b (new).’
Amendment 629 #
Proposal for a directive
Article 1 – paragraph 1 – point 43 a (new)
Article 1 – paragraph 1 – point 43 a (new)
Directive 2009/138/EC
Article 105 a (new)
Article 105 a (new)
(43a) the following Article is inserted: ‘Article 105a Long-term equity investments The European Commission shall adopt a delegated defining the criteria for the treatment of equity investments as long term equity investments. In order to benefit of a preferential treatment over these investments, criteria shall ensure a safe risk-management, that the investments take place in the Union, and that this equity is not issued by companies which have the parent company, subsidiaries or branches in a third country, which is mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non- cooperative jurisdictions for tax purposes, or in the Delegated Regulation in relation to third countries which have strategic deficiencies in their AML/CFT regimes that pose significant threats to the financial system of the Union ('high-risk third countries'), stemming from Article 9 of Directive (EU) 2015/849.’
Amendment 634 #
Proposal for a directive
Article 1 – paragraph 1 – point 45
Article 1 – paragraph 1 – point 45
Directive 2009/138/EC
Article 109 – paragraph 2
Article 109 – paragraph 2
2. Without prejudice to paragraph 1 of this Article and to Article 102(1), where an insurance or reinsurance undertaking calculates the Solvency Capital Requirement and a risk module or sub- module does not represent a share of more than 5 % of the Basic Solvency Capital Requirement referred to in Article 103, point (a), the undertaking may use a simplified calculation for that risk module or sub-module during a period of no more than threewo years following that calculation of the Solvency Capital Requirement.
Amendment 640 #
Proposal for a directive
Article 1 – paragraph 1 – point 46 – point a
Article 1 – paragraph 1 – point 46 – point a
Directive 2009/138/EC
Article 111 – paragraph 1 – point m a (new)
Article 111 – paragraph 1 – point m a (new)
(ma) the method and parameters to be used when assessing the capital requirement for climate-related financial risk in the case of exposures to fossil fuel assets and activities that cause significant harm to environmental objectives referred to in Articles 101(4) and 105(5).
Amendment 650 #
Proposal for a directive
Article 1 – paragraph 1 – point 47
Article 1 – paragraph 1 – point 47
Directive 2009/138/EC
Article 112 – paragraph 7
Article 112 – paragraph 7
7. After having received approval from supervisory authorities to use an internal model, and each time they report the result of a calculation of the Solvency Capital Requirement pursuant to Article 102(1), insurance and reinsurance undertakings shall provide the supervisory authorities with an estimate of the Solvency Capital Requirement determined in accordance with the standard formula, as set out in Subsection 2 as well as an explanation on possible divergence between both calculations.;
Amendment 657 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point - a (new)
Article 1 – paragraph 1 – point 49 – point - a (new)
Directive 2009/138/EC
Article 132 – paragraphs 1, 2, 2 a (new) and 2 b (new)
Article 132 – paragraphs 1, 2, 2 a (new) and 2 b (new)
(-a) paragraphs 1 and 2 are replaced by the following: "1. Member States shall ensure that insurance and reinsurance undertakings invest all their assets in accordance with the prudent person principle, as specified in paragraphs 2, 2a (new), 2b (new), 3 and 4. 2. With respect to the whole portfolio of assets, insurance and reinsurance undertakings shall only invest in assets and instruments whose risks , including potential sustainability risks, the undertaking concerned can properly identify, measure, monitor, manage, control and report, and appropriately take into account in the assessment of its overall solvency needs in accordance with point (a) of the second subparagraph of Article 45(1). All assets, in particular those covering the Minimum Capital Requireme2a. Insurance and reinsurance undertakings shall take into and the Solvency Capital Requirement, shall be invested in such a manner as to ensure the security, quality, liquidity and profitability of the portfolio as a whole. In addition the localisation of those assets shall be such as to ensure their avccount the potential long-term impact of their investment strategy and decisions on sustainability factors and, where relevant, that strategy and those decisions shall reflect the sustailnability. Assets held to cov preferences of its customers the technical provisions shall also be invested in a manner appropriate to the nature and duration of the insurance and reinsurance liabilities. Those assets shall be invested in the best interest of all policy holders and beneficiaries taking into account any disclosed policy objective. In the case of a conflict of interest, insurance undertakings, or the entity which manages their asset portfolio, shall ensure thataken into account in the product approval process as referred to in Article 4of Commission Delegated Regulation (EU) 2017/2358. 2b. Insurance and reinsurance undertakings shall have and shall publicly disclose a written policy in relation to their approach to stewardship including a summary of how the steps the undertaking has taken to achieve the goals of the policy in the preceding year. The stewardship policy shall be subject to prior approval by the administrative, management or supervisory body and shall be reviewed at least annually. Insurance and reinsurance undertakings shall integrate their transition plan within their investment is made in the best interest of policy holders and beneficiaries. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)strategy and decisions. " Or. en
Amendment 662 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point b
Article 1 – paragraph 1 – point 49 – point b
Directive 2009/138/EC
Article 132 – paragraph 5
Article 132 – paragraph 5
5. Member States shall ensure that insurance and reinsurance undertakings take account of possible macroeconomic and financial markets’ developments including developments related to climate change and pandemics and, at the request of the supervisory authority, macroprudential concerns when they decide on their investment strategy.
Amendment 665 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point b
Article 1 – paragraph 1 – point 49 – point b
Directive 2009/138/EC
Article 132 – paragraph 6
Article 132 – paragraph 6
6. Insurance and reinsurance undertakings shall assess the extent to which their investment strategy may affect macroeconomic and financial markets’ developments including developments related to climate change and pandemics and have the potential to turn into sources of systemic risk, and incorporate such considerations as part of their investment decisions.
Amendment 670 #
Proposal for a directive
Article 1 – paragraph 1 – point 52
Article 1 – paragraph 1 – point 52
Directive 2009/138/EC
Article 139 – paragraph 3
Article 139 – paragraph 3
3. If a winding-up proceeding is not opened within two months of receipt of the information referred to in paragraph 1, the supervisory authority of the home Member State shall consider restricting or prohibiting the free disposal of assets of the insurance or reinsurance undertaking. It shall inform the supervisory authorities of the host Member States accordingly. At the request of the supervisory authority of the home Member State, those authorities shall take the same measures. The supervisory authority of the home Member State shall designate the assets to be covered by such measures.
Amendment 778 #
Proposal for a directive
Article 1 – paragraph 1 – point 89 – point c
Article 1 – paragraph 1 – point 89 – point c
Directive 2009/138/EC
Article 301a – paragraph 5
Article 301a – paragraph 5
5. A delegated act adopted pursuant to Article 17, 29, 31, 35, 35b, 37, 44, 50, 56, 75, 86, 92, 97, 99, 109a, 111, 114, 127, 130, 135, 143, 172, 210, 211, 216, 217, 227, 234, 241, 244, 245, 247, 248, 256, 256b, 258, 260 or 308b shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of three months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.;
Amendment 794 #
Proposal for a directive
Article 1 – paragraph 1 – point 91 a (new)
Article 1 – paragraph 1 – point 91 a (new)
Directive 2009/138/EC
Article 304b (new)
Article 304b (new)
(91a) The following Article is inserted: 'Article 304b Prudential treatment of securitisation By 31 December 2024 EIOPA shall report to the European Commission on a more appropriate calibration of capital requirements for investments in securitisation tranches, including senior STS, non-senior STS and non-STS. In particular, EIOPA shall take into consideration: (a) data relating to risk of STS securitisations since 2019 and proxy data for securitisations with similar characteristics prior to 2019; (b) data relating to risk of securitisations generally for non-STS securitisations; (c) the creation of a proportionate set of capital requirements between different asset classes that provides for a level playing field between asset classes and reduces regulatory arbitrage. Having taken into account the EIOPA report referred to in subparagraph 1 of this article, the Commission is empowered to amend Delegated Regulation (EU) 2015/35 with regard to the capital treatment of securitisation by adopting a delegated act in accordance with Article 301a.'
Amendment 795 #
Proposal for a directive
Article 1 – paragraph 1 – point 91 a (new)
Article 1 – paragraph 1 – point 91 a (new)
Directive 2009/138/EC
Article 304b (new)
Article 304b (new)
(91a) the following Article is inserted: ‘Article 304b Profit sharing reserve schemes The Commission shall publish a report on the use of profit sharing reserve schemes in the Member States, analysing their impact on the balance sheet of the insurance and reinsurance undertakings, break down per Member States, within 12 months from the entry into force of the Directive. This report shall assess the risks of these schemes in terms of financial stability and policyholder protection, their impact on the level playing field among undertakings in the Union, and the legislations adopted in the Member States in this regard. On the basis of this report, the Commission shall adopt a legislative proposal to phase-out these schemes over a defined transitional period, and to adopt safeguards in order to limit the risks during this transitional period stemming from them the financial stability and policyholder protection.’