14 Amendments of Elisabetta GUALMINI related to 2021/0296(COD)
Amendment 57 #
Proposal for a directive
Recital 29 a (new)
Recital 29 a (new)
(29 a) Resolution authorities should have the flexibility to balance the resolution objectives as appropriate to the nature and circumstances of each situation; however, relevance should always be ensured to the policy holder protection in relation to the other resolution objectives, especially when the objectives are in conflict. This would be consistent with the approach followed by the Solvency II framework, where the main objective is the adequate and stronger protection of policy holders and beneficiaries.
Amendment 59 #
Proposal for a directive
Recital 47
Recital 47
(47) The protection of policy holders, beneficiaries or injured parties is one of the main objectives of resolution. Insurance claims should therefore only be subject to the application of the write-down or conversion tool as a last resort measure and resolution authorities should carefully consider the consequences of a potential write-down of insurance claims stemming from insurance contracts held by natural persons and micro, small and medium- sized enterprises. The Commission should adopt a delegated act to provide further measures for the purpose of policy holders protection. Member States are allowed to include in their national legislation further and more robust safeguards to protect policy holders and beneficiaries in limiting the application of the write-down or conversion tool up to the extent they consider appropriate in achieving the objective of the protection of policy holders and beneficiaries.
Amendment 60 #
Proposal for a directive
Recital 47 a (new)
Recital 47 a (new)
(47 a) Taking into account EIOPA’s staff document on the “overview of the proposal for an insurance recovery and resolution directive”, published on July 2022, a minimum harmonisation regarding external funding sources should be a preferred option in case of resolution, in order to avoid that the negative consequence to inflate the balance sheet of insurers and to entail higher cost. Therefore, any policy proposal on resolution funding should be based on a detailed impact assessment and an analysis on costs and benefits by EIOPA; in particular, the Commission and EIOPA should take into account the impact of the funding on the market at Union scale.
Amendment 62 #
Proposal for a directive
Recital 81 a (new)
Recital 81 a (new)
(81 a) A harmonised framework of national IGS would help to minimise the reliance on public funds by providing equal protection to policy holders and beneficiaries in the event of an insurer’s insolvency. Indeed, the current lack of homogeneity among national IGSs brings to have unequal treatment of policy holders and beneficiaries belonging to the same insurer, as demonstrated by recent cross-border insurance failures. It should be also considered that the costs of an IGS are distributed to the industry and the involvement of all insurers across EU in the funding of an insurance failure gives them a direct financial stake in the behaviour of other insurers, the quality of the frameworks governing the supervision and resolution of insurers. Furthermore, the additional layer of protection given by national IGSs strengthens the confidence in the insurance sector and further promotes consumer demand for insurance products.
Amendment 63 #
Proposal for a directive
Recital 81 b (new)
Recital 81 b (new)
(81 b) The speed at which payments can be made to policy holders and beneficiaries in the event of insolvency is another benefit of establishing a harmonised framework of national IGS, given that under normal insolvency procedures the policy holders and beneficiaries might face long processes to recover the losses from the estate of the failed insurer. Despite the priority ranking of the claims, the long process of payments made could therefore adversely affect policy holders and beneficiaries depending on the type of policies. For instance, the timely payment of pension claims on life insurance policies would be essential.
Amendment 158 #
Proposal for a directive
Article 18 – paragraph 3 a (new)
Article 18 – paragraph 3 a (new)
3 a. In case of potential conflict among the objectives, Member States shall ensure that authorities always prioritise the achievement of the protection of policy holders, beneficiaries and claimants.
Amendment 161 #
Proposal for a directive
Article 19 – paragraph 3 – introductory part
Article 19 – paragraph 3 – introductory part
3. For the purposes of paragraph 1, point (a), an insurance or reinsurance undertaking shall be failing or likely to fail, inf there is no reasonable prospect that any alternative private sector measures or supervisory action, including preventive and corrective measures, would prevent any of the following circumstances is met:
Amendment 169 #
Proposal for a directive
Article 26 – paragraph 3 – subparagraph 1 – point e
Article 26 – paragraph 3 – subparagraph 1 – point e
(e) as a last resort, if deemed appropriate after a careful assessment on the protection of policy holders and beneficiaries by the Authorities, the write- down or conversion tool.
Amendment 178 #
Proposal for a directive
Article 34 – paragraph 1 – introductory part
Article 34 – paragraph 1 – introductory part
1. Member States shall ensure that resolution authorities may apply the write- down or conversion tool, as a last resort measure, to meet the resolution objectives referred to in Article 18 for any of the following purposes:
Amendment 181 #
Proposal for a directive
Article 34 – paragraph 1 – subparagraph 2 a (new)
Article 34 – paragraph 1 – subparagraph 2 a (new)
Member States shall ensure that authorities apply the write-down or conversion tool only if the protection of the policy holder and beneficiaries is granted. Member States might apply further safeguards in order to ensure the respect of the objective of the protection of policyholders and beneficiaries in applying this article.
Amendment 182 #
Proposal for a directive
Article 34 – paragraph 1 – subparagraph 2 b (new)
Article 34 – paragraph 1 – subparagraph 2 b (new)
The Commission shall adopt a Delegated Act including measures to limit the application of write-down or conversion tool to avoid a detrimental impact on the protection of policyholders and beneficiaries, in particular ensuring the presence of a security net for policyholders and beneficiaries.
Amendment 186 #
Proposal for a directive
Article 34 a (new)
Article 34 a (new)
Article 34 a Additional safeguards for resolution power, the power to restructure, limit or write down insurance liabilities, and allocate losses to policy holders as a last resort option 1. When allocating losses to policy holders, resolution authorities shall take into account all the following safeguards: a) all other feasible measures and options which could have averted losses for policy holders have been exhausted or have been deemed unlikely to be successful; b) the allocation of losses to policy holders should only take place as a last resort option; c) the exercise of the power to restructure, limit or write down insurance liabilities is deemed necessary for other powers to be effective and, hence, to limit the losses for policy holders; d) board members or persons who effectively run the insurer or have other key functions should be removed or dismissed if those persons can be found unfit to perform their duties pursuant to Article 42 of the Solvency II Directive 32/88; e) policy holders should be compensated to the extent possible by IGSs or other similar mechanisms. 2. Member States should ensure that policy holders should be informed of the existence of this power and the possibility that this power might be exercised in exceptional circumstances by, for instance, including a clause in the insurance contract explaining the potential risks and financial consequences for the policy holder and taking into account possible coverage under a national insurance guarantee scheme.
Amendment 194 #
Proposal for a directive
Article 91 a (new)
Article 91 a (new)
Article 91 a Legislative proposal on national Insurance Guarantee Schemes The Commission shall adopt a legislative proposal, laying down the principles for a harmonised framework of national Insurance Guarantee Schemes.
Amendment 195 #
Proposal for a directive
Article 92 – paragraph 1 – subparagraph 2 a (new)
Article 92 – paragraph 1 – subparagraph 2 a (new)
They shall apply Articles 34-39 after the entry into application of legislation as in Article 91a, laying down the principle for an harmonised framework of national Insurance Guarantee Schemes.