[ParlTrack]

Proposal for a directive
Recital 13

(13) It is necessary to ensure the suitability and effectiveness of the recovery and resolution framework while avoiding unnecessary administrative burdens and costs on undertakings and authorities. The implementation of such recovery and resolution framework should therefore be proportionate to the nature, scale and complexity of the undertaking concerned, and of its activities and services. Regarding the scope of the recovery and resolution planning requirements, authorities should determine, on the basis of a harmonised set of risk-based criteria, which undertakings are subject to the planning requirements. To foster trust in the insurance and reinsurance single market and to foster a level playing field, a minimum degree of preparedness should be achieved through laying down a minimum market coverage level. That minimum market coverage level should however take into account the differences between recovery on the one hand and resolution on the other, and the existence or absence of a public interest for taking resolution actionfully-fledged planning requirements.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 1 – paragraph 2

2. Member States may adopt or maintain rules that are stricter or additional to those laid down in this Directive and in the delegated and implementing acts adopted on the basis of this Directive, provided that those rule are of general application and do not conflict with this Directive and with the delegated and implementing acts adopted on its basis. When doing so, Member States shall inform EIOPA.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 2 – paragraph 2 – point 14

(14) ‘extraordinary public financial support’ means State aid within the meaning of Article 107(1) TFEU, or any other public financial support at supra- national level, which, if provided for at national level, would constitute State aid that is provided to preserve or restore the viability, liquidity or solvency of an ~~insurance or reinsurance undertaking or~~ entity referred to in Article 1(1), ~~points (b) to (e),~~ or of a group of which such an undertaking or entity forms part; (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 2 – paragraph 2 – point 80 a (new)

(80 a) “low risk profile group” means a low risk profile group as defined in Article 213a, paragraph 1 of Directive 2009/138/EC;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 4 – paragraph 1 – introductory part

1. Taking into account the impact that the failure of the insurance or reinsurance undertaking could have, due to the nature of its business, its shareholding structure, its legal form, its risk profile, size and legal status, its interconnectedness to other regulated undertakings or to the financial system in general, the scope and the complexity of its activities, and whether its failure and subsequent winding up under normal insolvency proceedings would be likely to have a significant negative effect on financial markets, on other undertakings, on policy holders, on funding conditions, or on the wider economy, supervisory and resolution authorities shall determine whether simplified obligations can apply for certain low risk profile insurance and reinsurance undertakings and low risk profile groups with respect to:

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 2 – subparagraph 2

Supervisory authorities shall ensure that at least 80% of the Member State’s life and non-life 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, shall be subject to pre-emptive recovery planning requirements pursuant to this Article.deleted

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 3

3. Any insurance or reinsurance undertaking which is subject to a resolution plan pursuant to Article 9 shall be subject to pre-emptive recovery planning requirements. Low risk profile undertakings, however, shall not be subject to pre-emptive recovery planning requirements on an individual basis.deleted

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 7 – point d a (new)

(d a) a summary of the material changes to the undertaking since the most recently filed recovery plan;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 7 – point e a (new)

(e a) a detailed description of how recovery planning is integrated into the corporate governance structure of the undertaking as well as the policies and procedures governing the approval of the recovery plan and identification of the persons in the organisation responsible for preparing and implementing the plan;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 7 – point f a (new)

(f a) in case the undertaking had breached the Solvency Capital Requirement and adopted a recovery plan in accordance with Article 138 of Directive 2009/138/EC over the last 10 years, the plan as well as an assessment of the measures adopted to restore its compliance with the Solvency Capital Requirement.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 9 – subparagraph 1

9. Member States shall require that insurance and reinsurance undertakings ensure that their pre-emptive recovery plans contain a framework of qualitative and quantitative indicators that identify the points at which remedial actions should be considered. Those indicators ~~may~~shall, as a minimum, include criteria relating to, ~~inter alia, capita~~capital, liabilities subject to the write- down and conversion tool, liquidity, asset quality, profitability, market conditions, macro-economic conditions and operational events. Indicators relating to the capital position shall ~~as a minimum~~ contain any breach of the Solvency Capital Requirement laid down in Title I, Chapter VI, Section 4, of Directive 2009/138/EC and the level of liabilities of the undertaking subject to the write-down and conversion tool under Article 34 and their place in the creditor hierarchy.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 11

11. EIOPA shall, by [PO – add 18 months after entry into force], issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further the minimum list of qualitative and quantitative indicators referred to in paragraph 7, first subparagraph, point (c) and, in cooperation with the European Systemic Risk Board (ESRB), the range of scenarios referred to in paragraph 8.deleted

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 5 – paragraph 12 – subparagraph 1

12. EIOPA shall develop draft regulatory technical standards further specifying, without prejudice to Article 4, the information that an insurance or reinsurance undertaking as referred to in paragraph 1 is to include in the pre-emptive recovery plan, including the remedial actions referred to in paragraph 7, first subparagraph, point (e) and their implementation, the minimum list of qualitative and quantitative indicators referred to in paragraph 7, first subparagraph, point (c), of this Article, in cooperation with the European Systemic Risk Board (ESRB), the range of scenarios referred to in paragraph 8 of this Article, as well as specifying what constitutes a significant deterioration of the financial situation referred to in paragraph 1 and for the changes to the legal or organisational structure of the undertaking its business or its financial situation referred to in paragraph 5.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 6 – paragraph 1 – point a

(a) whether the implementation of the arrangements proposed in the plan is reasonably likely to maintain or restore within a specified timeframe the viability and financial position of the insurance or reinsurance undertaking or of the group;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 6 – paragraph 1 – point b

(b) whether the plan and specific options within the plan are reasonably likely to be implemented ~~quickly~~within a specified timeframe and effectively in situations of financial stress;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 6 – paragraph 3

3. Where an insurance or reinsurance undertaking carries out significant cross- border activities, the home supervisory authority shall, upon the request of a host supervisory authority, provide the pre- emptive recovery plan to that host supervisory authority. The host supervisory authority may examine the pre-emptive recovery plan to identify any actions in the pre-emptive recovery plan which may adversely impact policy holders, the real economy or the financial stability in its Member State and make recommendations to the home supervisory authority with regard to those matters. Where the home supervisory authority fails to properly take into account the recommendation from the host supervisory authority, the host supervisory authority can refer the matter to EIOPA.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 6 – paragraph 5 – subparagraph 1

5. Where the insurance or reinsurance undertaking fails to submit a revised pre- emptive recovery plan, or where the supervisory authority comes to the conclusion that the revised pre-emptive recovery plan does not adequately remedy the deficiencies or potential impediments identified in its original assessment, and where it is not possible to adequately remedy the deficiencies or impediments through a direction to make specific changes to the plan, the supervisory authority shall ~~require the undertaking to identify within a reasonable timeframe changes the undertaking can make to its b~~take a reasoned decision to require the undertaking to take any measures it considers to be appropriate, taking into account the seriousiness ~~in order to address the deficiencies in the pre-emptive recovery plan or~~of the deficiencies and impediments toand the ~~implementation of that plan~~effect of the measures on the undertaking’s business.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 6 – paragraph 5 – subparagraph 2

Where the insurance or reinsurance undertaking fails to identify such changes within the timeframe set by the supervisory authority, or where the supervisory authority concludes that the actions proposed by the undertaking would not adequately address the deficiencies or impediments, the supervisory authority may take a reasoned decision to direct the undertaking to take any measures it considers to be necessary and proportionate, taking into account the seriousness of the deficiencies and impediments and the effect of the measures on the undertaking’s business.deleted

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 9 – paragraph 1 a (new)

The resolution plan shall in particular identify explicitly whether the undertaking shall be wound up under normal insolvency proceedings on the basis of its idiosyncratic characteristics or whether it shall be subject to the resolution tools established by this Directive.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 9 – paragraph 1 b (new)

When drawing up the resolution plan, the resolution authority shall identify any material impediments to resolvability and, where appropriate, outline relevant actions for how those impediments could be addressed.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 9 – paragraph 2

2. Resolution authorities shall draw up resolution plans for insurance and reinsurance undertakings to be selected on the basis of their size, business model, risk profile, interconnectedness, substitutability and the likely impact of the failure on policy holders. When selecting the insurance and reinsurance undertakings subject to resolution planning, the resolution authority shall in particular take into account the cross- border activity of the insurance or reinsurance undertaking and the existence of critical functions. Resolution authorities shall ensure that at least 70% of the Member State’s life and non-life 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, shall be subject to resolution planning. In the calculation of the market coverage level, the subsidiaries of a group may be taken into account where those subsidiaries are covered in the group resolution plan referred to in Article 10. Low risk profile undertakings shall not be subject to resolution planning requirements on an individual basis.deleted

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 9 – paragraph 3

3. Where the insurance or reinsurance undertaking concerned carries out significant cross-border activities, home resolution authorities shall~~, upon the request of a host supervisory or resolution authority,~~ provide the draft resolution plan to ~~that~~ host supervisory or resolution authorityies. The host supervisory or resolution authority may examine the draft resolution plan to identify any actions in the draft resolution plan which may adversely impact policy holders, the real economy or the financial stability in its Member State and make recommendations to the home resolution authority with regard to those matters. Where the home supervisory authority fails to properly take into account the recommendation from the host supervisory authority, the host supervisory authority can refer the matter to EIOPA.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 9 – paragraph 6 – subparagraph 1 – point h a (new)

(h a) a detailed and comprehensive list of capital and liabilities per each ranking category as established according to national insolvency proceedings and where available a detailed list of the holders of these instruments. The list shall be updated within 24 hours of any change to the liability structure and be made available to competent or resolution authorities within 24 hours of a request by such an authority;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 13 – paragraph 1 – subparagraph 2

An insurance or reinsurance undertaking shall be deemed resolvable where it is feasible and credible for ~~that undertaking to be liquidated under normal insolvency proceedings, or for~~ the resolution authority to resolve that undertaking by applying to it the different resolution tools referred to in Article 26(3) and resolution powers referred to in Articles 40 to 52.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 13 – paragraph 1 – subparagraph 2 a (new)

The assessment of resolvability shall in particular identify whether the undertakings would be wound up under normal insolvency proceedings or whether they would be subject to the resolution tools established by this Directive. The assessment shall in particular, indicate whether given the specific characteristics of the undertaking a resolution action is expected to be necessary in the public interest pursuant to Article 19 whenever the undertaking is failing or likely to fail.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 15 – paragraph 1 – subparagraph 1 a (new)

The inability to fulfil any of the information requirements referred to in paragraph 6 of Article 9 to the satisfaction of the resolution authority shall be considered a substantive impediment to resolvability.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 15 – paragraph 4 – subparagraph 2

When identifying alternative measures, resolution authorities shall ~~demonstrate how the measures proposed by the insurance or reinsurance undertaking would not be able to remove the impediments to resolvability and how the alternativ~~take into account the effect of the measures on the business of the insurance or reinsurance undertaking, its stability and its ability to contribute to the economy. The undertaking shall have the right to demonstrate how the measures it proposed ~~are proportionate in~~would be able to remov~~ing~~e those impediments~~. Resolution authorities shall take into account the effect of the measures on the business of the insurance or reinsurance undertaking, its stability and its ability to contribute to the economy~~ to resolvability and how the alternative measures proposed by the authority are unnecessarily burdensome in removing them.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 15 – paragraph 5 – point f a (new)

(f a) restrict or prevent the development of new cross-border activities;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 15 – paragraph 8

8. EIOPA shall, by [PO – add 182 months after entry into force], issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify the definition of substantive impediments to resolvability and further details on the measures provided for in paragraph 5 and the circumstances in which each measure may be applied.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 15 – paragraph 8 a (new)

8 a. Taking into account, where appropriate, experience acquired in the application of the guidelines referred to in paragraph 8, EIOPA shall specify the definition of substantive impediments to resolvability and further details on the measures provided for in paragraph 5 and the circumstances in which each measure may be applied. EIOPA shall submit those draft regulatory technical standards to the Commission by [PO – add 28 months after entry into force]. Power 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.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 15 – paragraph 8 b (new)

8 b. Resolution authorities shall regularly, and at least annually, inform EIOPA on the progress made as regards to the removal of the impediments to resolvability in their markets.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 19 – paragraph 1 – point b

(b) there is no reasonable prospect that any alternative private sector measures or supervisory action, including preventive and corrective measures, would prevent the failure of the undertaking within a reasonable timeframe that shall not exceed 3 months;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 19 – paragraph 3 – point b

(b) the insurance or reinsurance undertaking no longer fulfils the conditions for authorisation or fails seriously in its obligations under the laws and regulations to which it is subject, or there are objective elements to support that the undertaking will, in the ne~~ar future~~xt 30 days, seriously fail its obligations in a way that would justify the withdrawal of the authorisation;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 19 – paragraph 3 – point c

(c) the insurance or reinsurance undertaking is unable to pay its debts or other liabilities, including payments to policy holders or beneficiaries, as they fall due, or there are objective elements to support a determination that the undertaking will, in the ne~~ar future~~xt 30 days, be in such a situation;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 19 – paragraph 4 a (new)

4 a. EIOPA shall, by [PO – add 12 months after entry into force], issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify the definition of the public interest referred to in paragraph 4 of this Article.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 29 – paragraph 3 – subparagraph 1 a (new)

When adopting the decision referred to in the previous subparagraph, resolution authorities shall provide reasoned justifications and inform EIOPA.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 32 – paragraph 2 – point a

(a) it is wholly or partially owned by one or more public authorities which may include the resolution authority or~~, where applicable, an insurance gu~~ a financing arran~~tee scheme~~gements referred to in Title VI a (new) and is controlled by the resolution authority;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 33 – paragraph 1 – subparagraph 2

Notwithstanding the provisions referred to in points (d) and (e) of the first subparagraph and where necessary to meet the resolution objectives referred to in Article 18, a bridge undertaking may be established and authorised without complying with Directive 2009/138/EC for a short period of time at the beginning of its operation. To that end, the resolution authority shall submit a request in that sense to the supervisory authority. Where the supervisory authority decides to grant such an authorisation, it shall indicate the period for which the bridge undertaking is waived from complying with the requirements of Directive 2009/138/EC. This time period shall not exceed 12 months.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 34 – paragraph 1 – subparagraph 2

When applying the write-down or conversion tool to insurance claims, resolution authorities may also restructure the terms of the related insurance contracts to achieve the resolution objectives referred to in Article 18 more effectively. When doing so, resolution authorities shall take into account the impact on policyholders.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 34 – paragraph 5 – subparagraph 1 – point a a (new)

(a a) covered policies under paragraphs 4, 5 and 6 of Article 82f (new);

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 34 – paragraph 5 – subparagraph 1 – point d – point iii a (new)

(iii a) a financing arrangement referred to in Title VI a (new);

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 34 – paragraph 6 – point d a (new)

(d a) the application of the write-down or conversion tools would have a disproportionate impact on some policyholders, that could not be compensated by the financing arrangements established in accordance with Title VI a (new) of this Directive;

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Title VI a (new)

TITLE VI a RESOLUTION FINANCING ARRANGEMENTS Article 82 a Requirement to establish resolution financing arrangements 1. Member States shall establish one or more financing arrangements for the purpose of ensuring the effective application by the resolution authority of the resolution tools and powers. Member States shall ensure that the use of the financing arrangements may be triggered by a designated public authority or authority entrusted with public administrative powers. The financing arrangements shall be used only in accordance with the resolution objectives and the principles set out in Articles 19 and 22. 2. Member States shall ensure that the financing arrangements have adequate financial resources. 3. For the purpose of paragraph 2, financing arrangements shall in particular have the power to: (a) raise ex-ante contributions as referred to in Article 82c; (b) raise ex-post extraordinary contributions as referred to in Article 82d where the contributions specified in point (a) are insufficient. 4. Member States shall ensure that, the available financial means of their financing arrangements reach a certain target level of the amount of covered policies of all the undertakings authorised in their territory. Article 82 b Use of the resolution financing arrangements 1. The financing arrangements established in accordance with Article 82a may be used by the resolution authority only to the extent necessary to ensure the effective application of the resolution tools, for the following purposes: (a) to guarantee the assets or the liabilities of the undertaking under resolution, its subsidiaries, a bridge institution or an asset management vehicle; (b) to make loans to the undertaking under resolution, its subsidiaries, a bridge undertaking or an asset management vehicle; (c) to purchase assets of the undertaking under resolution; (d) to make contributions to a bridge undertaking and an asset management vehicle; (e) to pay compensation to shareholders or creditors in accordance with Article 55; (f) to make a contribution to the institution under resolution in lieu of the write down or conversion of liabilities of certain creditors, when the write down or conversion tool is applied and the resolution authority decides to exclude certain creditors from the scope of the write down or conversion tool in accordance with Article 34(6); (g) to take any combination of the actions referred to in points (a) to (f). 2. The resolution financing arrangement shall not be used directly to absorb the losses of an undertaking or to recapitalise such an undertaking. Article 82 c Ex-ante contributions 1. Member States shall ensure that contributions are raised at least annually from the undertakings within the scope of this Directive in their territory. 2. The contribution of each undertaking shall be pro rata to the amount of its liabilities (excluding own funds), with respect to the aggregate liabilities (excluding own funds) of all the undertakings authorised in the territory of the Member State. Those contributions shall be adjusted in proportion to the risk profile of undertakings, in accordance with the criteria adopted under paragraph 5. 3. Member States shall ensure that the obligation to pay the contributions specified in this Article is enforceable under national law, and that due contributions are fully paid. Member States shall set up appropriate regulatory, accounting, reporting and other obligations to ensure that due contributions are fully paid. Member States shall ensure measures for the proper verification of whether the contributions have been paid correctly. Member States shall ensure measures to prevent evasion, avoidance and abuse. 4. The amounts raised in accordance with this Article shall only be used for the purposes specified in Article 82b (1). 5. The Commission shall be empowered to adopt delegated acts by January 2023 in order to specify the notion of adjusting contributions in proportion to the risk profile of undertakings as referred to in paragraph 2 of this Article, taking into account at least all of the following: (a) the risk exposure of the undertaking; (b) the stability and variety of the company’s sources of funding; (c) the financial condition of the undertaking; (d) the probability that the undertaking enters into resolution; (e) the complexity of the structure of the undertaking and its resolvability; (f) the importance of the undertaking to the stability of the financial system or economy of one or more Member States or of the Union. Article 82 d Extraordinary ex-post contributions 1. Where the available financial means are not sufficient to cover the losses, costs or other expenses incurred by the use of the financing arrangements, Member States shall ensure that extraordinary ex- post contributions are raised from the undertakings authorised in their territory, in order to cover the additional amounts. Those extraordinary ex-post contributions shall be allocated between undertakings in accordance with the rules laid down in Article 82c (2). Extraordinary ex-post contributions shall not exceed three times the annual amount of contributions determined in accordance with Article 82c. 2. Article 82c (2) and (5) shall be applicable to the contributions raised under this Article. 3. The resolution authority may defer, in whole or in part, an undertaking’s payment of extraordinary ex-post contributions to the resolution financing arrangement if the payment of those contributions would jeopardise the liquidity or solvency of the undertaking. Such a deferral shall not be granted for a period of longer than six months but may be renewed upon the request of the undertaking. The contributions deferred pursuant to this paragraph shall be paid when such a payment no longer jeopardises the undertaking’s liquidity or solvency. 4. The Commission shall be empowered to adopt delegated acts to specify the circumstances and conditions under which the payment of contributions by an undertaking may be deferred pursuant to paragraph 3 of this Article. Article 82 e Mutualisation of national financing arrangements in the case of a group resolution 1. Member States shall ensure that, in the case of a group resolution , the national financing arrangement of each undertaking that is part of a group contributes to the financing of the group resolution in accordance with this Article. 2. For the purposes of paragraph 1, the group-level resolution authority, after consulting the resolution authorities of the undertakings that are part of the group, shall propose, if necessary before taking any resolution action, a financing plan as part of the group resolution scheme. 3. The financing plan shall include: (a) a valuation in accordance with Article 23 in respect of the affected group entities; (b) the losses to be recognised by each affected group entity at the moment the resolution tools are exercised; (c) for each affected group entity, the losses that would be suffered by each class of shareholders and creditors; (d) any contribution that insurance guarantee schemes would be required to make in accordance with Article 82g; (e) the total contribution by resolution financing arrangements and the purpose and form of the contribution; (f) the basis for calculating the amount that each of the national financing arrangements of the Member States where affected group entities are located is required to contribute to the financing of the group resolution in order to build up the total contribution referred to in point (e); (g) the amount that the national financing arrangement of each affected group entity is required to contribute to the financing of the group resolution and the form of those contributions; (h) the amount of borrowing that the financing arrangements of the Member States where the affected group entities are located, will contract from institutions, financial institutions and other third parties under Article 105; (i) a timeframe for the use of the financing arrangements of the Member States where the affected group entities are located, which should be capable of being extended where appropriate. 4. The basis for apportioning the contribution referred to in point (e) of paragraph 3 shall be consistent with paragraph 5 of this Article and with the principles set out in the group resolution plan, unless otherwise agreed in the financing plan. 5. Unless agreed otherwise in the financing plan, the basis for calculating the contribution of each national financing arrangement shall in particular have regard to: (a) the contribution of the national undertakings established in the Member State of that resolution financing arrangement to the group Solvency Capital Requirements, calculated in accordance with the rules laid down in Title III, chapter 2 of [insert reference to Solvency 2 Directive]; (b) the proportion of the group’s assets held at undertakings established in the Member State of that resolution financing arrangement; (c) the proportion of the losses, which have given rise to the need for group resolution, which originated in group entities under the supervision of competent authorities in the Member State of that resolution financing arrangement; and (d) the proportion of the resources of the group financing arrangements which, under the financing plan, are expected to be used to benefit group entities established in the Member State of that resolution financing arrangement directly. 6. Member States shall establish rules and procedures in advance to ensure that each national financing arrangement can effect its contribution to the financing of group resolution immediately without prejudice to paragraph 2. 7. Member States shall ensure that any proceeds or benefits that arise from the use of the group financing arrangements are allocated to national financing arrangements in accordance with their contributions to the financing of the resolution as established in paragraph 2.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Title VI b (new)

TITLE VI b INSURANCE GUARANTEE SCHEMES Article 82 f Insurance guarantee schemes 1. Each Member State shall ensure that within its territory one or more Insurance Guarantee Schemes are introduced and officially recognised. 2. IGSs shall guarantee in a reasonable timeframe the payment of eligible claims to eligible policy holders, insured parties and beneficiaries where an undertaking is unable or likely to become unable to fulfil its obligations and commitments. Such timeframe shall be seven working days from the date the date on which: (a) the relevant administrative authorities have determined that the undertaking concerned is unable, for reasons which are directly related to its financial situation, to pay due claims under an insurance contract to the policyholder or beneficiary and that it has no prospect of being able to do so; or (b) a judicial authority has made a ruling for reasons which are directly related to the insurance or reinsurance undertaking’s financial situation and which has the effect of suspending the rights of policy holders to make claims against it; IGS shall ensure the continuation of insurance policies from that date. 3. However, Member States may, for a transitional period until 31 December 2028, establish the following repayment periods of up to: (a) 20 working days until 3 December 2024; (b) 15 working days from 1 January 2025 until 31 December 2026; (c) 10 working days from 1 January 2027 until 31 December 2028. 4. Member states shall define the life and non-life policies to be covered by the IGS. In defining the criteria for selecting the range of life and non-life policies to be covered, Member states shall aim to cover policies where the failure of an insurer could lead to considerable financial or social hardship for policyholders and beneficiaries; 5. As a minimum, natural persons and micro-and small-sized legal undertakings as defined in Directive 2013/34/EU shall be protected. Member states may introduce restrictions to exclude from paragraph 2 persons closely connected to the failed entity. 6. Member states shall introduce a minimum coverage level for eligible claimants under paragraph 5 in order to ensure that policyholders and beneficiaries exposed to considerable financial or social hardship are effectively protected. 7. Contributions to the IGS shall be defined in line with Articles 82c and 82d. 8. Member States shall ensure that the available financial means of a IGS shall reach a target level based on the amount of the covered policies of its members. 9. Claimants at branches and subsidiaries set up by undertakings in another Member State or claimants in case of cross-border provision of services under Article 4 of Directive (EU) 2016/97 shall be repaid by a IGS in the host Member State on behalf of the DGS in the home Member State. The IGS of the host Member State shall make repayments in accordance with the instructions of the IGS of the home Member State. The IGS of the host Member State shall not bear any liability with regard to acts done in accordance with the instructions given by IGS of the home Member State. The IGS of the home Member State shall provide the necessary funding prior to pay-out and shall compensate the IGS of the host Member State for the costs incurred. Article 82 g Insurance guarantee schemes in the context of resolution 1. The financial means of an IGS shall be primarily used for the purposes under paragraph 2 Article 82f. 2. The financial means of an IGS may be used in order to finance the resolution of an insurance or reinsurance undertaking. The resolution authority shall determine, after consulting the IGS, the amount by which the IGS is liable for: (a) when the write- down or conversion tool is applied, the amount by which covered policies would have been written down in order to absorb the losses in the undertaking, had covered policies been included within the scope of the write down and conversion tool and been written down to the same extent as policyholders with the same level of priority under the national law governing normal insolvency proceedings; or (b) when one or more resolution tools other than the write or conversion tool is applied, the amount of losses that covered policyholders would have suffered, had covered policies suffered losses in proportion to the losses suffered by creditors with the same level of priority under the national law governing normal insolvency proceedings. In all cases, the liability of the IGS shall not be greater than the amount of losses that it would have had to bear had the undertaking been wound up under normal insolvency proceedings. 3. If the available financial means of an IGS are used in accordance therewith and are subsequently reduced to less than two thirds of the target level of the IGS, the regular contribution to the IGS shall be set at a level allowing for reaching the target level within six years.

2022/07/18
Committee: ECON

Henrike HAHN

Proposal for a directive
Article 91 a (new)

Article 91 a Review clause By 1 January 2026, the Commission, after having consulted EIOPA, shall submit a report to the European Parliament and to the Council on the application of this Directive. The report shall in particular assess the further harmonisation of common standards for insurance guarantee schemes and resolution funding arrangements within the Union. It shall at least: a) assess the state of play of resolution financing arrangements and insurance guarantee schemes in Member States; b) analyse the introduction of a minimum requirement on liabilities subject to the write-down and conversion powers under this Directive; c) outline the necessary steps to introduce minimum harmonised definitions on the level of covered policies and eligible claimants and policies; d) set a target level of available financing means for resolution financing arrangements and insurance guarantee schemes across the Union; e) discuss further elements of harmonisation; f) analyse the corresponding necessary changes to legislative acts. The report shall be accompanied by a legislative proposal where appropriate. By 1 January 2029, the Commission after having consulted EIOPA, shall submit a report to the European Parliament and to the Council on the introduction of a single European fund for resolution funding and deposit insurance to foster equal protection of policy holders in the Union and improve the level playing field across Member states. The report shall be accompanied by a legislative proposal if appropriate.

2022/07/18
Committee: ECON

Activities of Henrike HAHN related to 2021/0296(COD)

Shadow reports (1)

Amendments (45)

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