16 Amendments of Jonás FERNÁNDEZ related to 2021/0295(COD)
Amendment 295 #
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 sustainable investments exhibit better recovery rates as compared to ordinary investments and whether this could be integrated in the way the Matching Adjustment and Volatility Adjustment are calculated, and 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 analyses as introduced by this Directive in the context of climate change-related risks to other environmental risks.
Amendment 308 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2009/138/EC
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) the undertaking’s annual gross written premium does not exceed EUR 150 000 000;
Amendment 310 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2009/138/EC
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) the total of the undertaking’s technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred in Article 76, does not exceed EUR 540 000 000;;
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 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 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 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 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 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 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 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.’