[ParlTrack]

Proposal for a directive
Recital 20

(20) Resolution planning is an essential component of effective resolution. Resolution authorities should therefore have all the information necessary to identify critical functions and ensure their continuation. Supervisory authorities should work with resolution authorities to provide the latter with the necessary information. Insurance and reinsurance undertakings have privileged knowledge of their own functioning and any problems arising from it, and resolution authorities should therefore draw up resolution plans on the basis of, inter alia, the information provided by the undertakings concerned. In order to avoid unnecessary administrative burdens, resolution authorities should primarily retrieve the necessary information from the supervisory authorities.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Recital 20 a (new)

(20 a) A resolution fund for non-systemic insurance companies should be funded at Member State's level by ex-ante contributions paid annually at individual (solo) level by all non-systemic insurance companies established in all Member States.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Recital 20 b (new)

(20 b) A resolution fund for systemic insurance companies should be funded at Union level by ex-ante contributions paid annually at individual (solo) level by all systemic insurance companies established in all Member States.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Recital 20 c (new)

(20 c) The Commission should define an adequate level of subordinated debt with which systemic insurance companies would comply.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Title I

I SUBJECT MATTER AND SCOPE, DEFINITIONS AND DESIGNATION OF RESOLUTION AUTHORITIES AND RESOLUTION FUNDING

2022/07/18
Committee: ECON

Aurore LALUCQ

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

Aurore LALUCQ

Proposal for a directive
Article 3 – paragraph 1

1. Each Member State shall designate ~~one or, exceptionally, more~~a resolution authorit~~ies that are~~y empowered to apply the resolution tools and exercise the resolution powers.

2022/07/18
Committee: ECON

Aurore LALUCQ

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

1 a. Member States shall ensure that insurance undertakings fund the resolution authority, its functioning and the exercise of its resolution powers.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Article 3 – paragraph 2

2. Resolution authorities shall be 2. national central banks, competent ministries, public administrative authorities or authorities entrusted with public administrative powers. The setting up of resolution authorities shall not necessarily mean the setting up of new entities but rather the allocation of human and financial resources to existing authorities.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Article 3 – paragraph 11 a (new)

11 a. A European Resolution Authority shall be set up to oversee the resolution mechanism for systemic insurance undertakings.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Article 3 – paragraph 11 b (new)

11 b. The Commission shall, where provided for in this Directive, adopt definitions for systemic risk in insurance undertakings, by means of delegated acts pursuant to Article 290 TFEU, in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Article 3 a (new)

Article 3 a Resolution Funding 1. Member States shall establish a resolution fund for non-systemic insurance undertakings funded by ex-ante contributions paid annually at individual (solo) level by all non-systemic insurance undertakings with the view of reaching the right amount of private funds to avoid the use of public funds. 2. The Insurance Resolution Authority, at the European level shall establish a resolution fund for systemic insurance undertakings funded by ex-ante contributions paid annually at individual (solo) level by all systemic insurance undertakings with the view of reaching the right amount of private funds to avoid the use of public funds.

2022/07/18
Committee: ECON

Aurore LALUCQ

Proposal for a directive
Article 3 b (new)

Article 3 b Use of Resolution Funds 1) The use of the funds shall be triggered by the relevant resolution authority both at the Union and Member State level. 2) The funds established in Article 3(a) may be used by the resolution authority for the following purposes: (a) to guarantee the assets or the liabilities of the institution under resolution, its subsidiaries, a bridge institution or an asset management vehicle; (b) to make loans to the institution under resolution, its subsidiaries, a bridge institution or an asset management vehicle; (c) to purchase assets of the institution under resolution; (d) to make contributions to a bridge institution and an asset management vehicle; (e) to pay compensation to shareholders or creditors.

2022/07/18
Committee: ECON

Aurore LALUCQ

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

Aurore LALUCQ

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

Aurore LALUCQ

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

Aurore LALUCQ

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

Aurore LALUCQ

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

Aurore LALUCQ

Proposal for a directive
Title VI a (new)

TITLE VI a INSURANCE GUARANTEE SCHEMES Article 82 a 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 31 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 b 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 policy holders 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

19 Amendments of Aurore LALUCQ related to 2021/0296(COD)

ParlTrack - 2011-2024