41 Amendments of Frances FITZGERALD related to 2021/0295(COD)
Amendment 221 #
Proposal for a directive
Recital 5 a (new)
Recital 5 a (new)
(5 a) Recent geopolitical developments emphasised the necessity of an open strategic autonomy of the European Union. The insurance industry is a key facilitator of economic activity in the Union, and particularly small and medium sized entities, as well as social wellbeing for EU citizens. Safeguarding the competitiveness of the EU insurance market and should be an objective of the review of Directive 2009/138/EC, its transposition, implementation and the supervision in accordance with the regime.
Amendment 222 #
Proposal for a directive
Recital 5 b (new)
Recital 5 b (new)
(5 b) The further integration of the single market for insurance is a key objective of this review of Directive 2009/138/EC. The integration of the EU single market for insurance increases competition and the availability of insurance products across Member States to the benefit of businesses and consumers. Insurance failures in the single market for insurance since the application of Solvency II emphasise the need for more consistency and convergence of supervision across the EU. The supervision of insurance undertakings operating under the freedom to provide services and the freedom of establishment should be further improved without undermining the objective of further integrating the single market for insurance to ensure consistent consumer protection and safeguarding fair competition across the EU single market.
Amendment 225 #
Proposal for a directive
Recital 9
Recital 9
(9) Prior to the granting of authorisation, the supervisory authority of the home Member State should consult the supervisory authorities of any Member States concerned. In view of increased cross-border insurance activities, it is necessary to enhance the convergent application of Union law in cases of cross- border insurance activity and the exchange of information between the supervisory authorities, in particularcluding before authorisations are granted. Therefore, where several supervisory authorities need to be consulted, any supervisory authority concerned should be allowed to request a joint assessment of an application for authorisation froAll supervisory authority concerned should be allowed to request information from the supervisory authority granting the authorisation about the business model and risks inherent in the business of the insurance or reinsurance undertaking seeking authorisation. Where any concerned supervisory authority identifies potential risks which have not been appropriately reflected by the supervisory authority granting the authorisation, it should inform theis supervisory authority of the Member State where the authorisation process is ongoingwithout undue delay. The supervisory authority which is granting the authorisation might consider the issues raised by a concerned supervisory authority for its decision and should notify the concerned supervisory authority about its decision.
Amendment 232 #
Proposal for a directive
Recital 16
Recital 16
(16) Cooperation between the supervisory authority of the home Member State that granted authorisation to an insurance or reinsurance undertaking and the supervisory authorities of the Member States where that undertaking pursues activities by establishing branches or by providing services, should be strengthened in order to better prevent potential problems and to enhance the protection of policyholders across the Union. This cooperation should include more information coming from the supervisory authority of the home Member Staterease transparency and the regular exchange of information between concerned supervisory authorities, in particular regarding the outcome of the supervisory review process related to the cross-border activity, the financial condition of the undertaking and market conditions, which might impact the provision of services.
Amendment 263 #
Proposal for a directive
Recital 39 a (new)
Recital 39 a (new)
(39 a) Directive 2009/138/EC requires that the amount of eligible own funds necessary to support the insurance and reinsurance obligations be determined for the purpose of the risk margin calculation and that the Cost-of-Capital rate is equal to the additional rate, above the relevant risk-free interest rate, that an insurance or reinsurance undertaking would incur holding that amount of eligible own funds. Directive 2009/138/EC also requires that the Cost-of-Capital rate be reviewed periodically. For that purpose, the reviews should ensure that the Cost- of-Capital rate remains risk-based and is not set at an overly conservative level. In addition, the projection of future capital requirements for that purpose should take into account the time-dependence of risks in the aggregation of projected future capital requirements. In particular, projected future capital requirements for later years should have a lesser contribution to the risk margin than projected capital requirements of the same level pertaining to earlier years. The determination of the risk margin should take diversification effects at group level into account to reflect the positive impact of effective risk management of insurance and reinsurance groups.
Amendment 277 #
Proposal for a directive
Recital 56 a (new)
Recital 56 a (new)
(56 a) Despite the limited number of failures in the EU internal market for insurance, EIOPA found that particular unsustainable business models operating regulatory arbitrage caused consumer detriment. The supervisory authority granting authorisation to an insurance or reinsurance undertaking should particularly assess if the business model and the scheme of planned activity might pose particular risks to consumers in a specific Member State or across the EU internal market for insurance. Where the business plan of an insurance undertaking, which is seeking authorisation, includes activities carried out under the freedom to provide services or the freedom of establishment, the supervisory authority should notify all concerned supervisory authorities about the outcome of its assessment. Where the activities of an insurance undertaking carried out under the freedom to provide services or the freedom of establishment are considered to present a specific risk to consumers or the functioning of the internal market for insurance, these activities should be considered “significant cross-border activity”. A reassessment should be carried out where the insurance undertaking notifies the supervisory authority, granting the authorisation, that it intends to carry out activities in another Member State or where the risk profile of the undertaking changes materially .
Amendment 278 #
Proposal for a directive
Recital 57
Recital 57
(57) Under Directive 2009/138/EC, as amended by Directive (EU) 2019/2177 of the European Parliament and of the Council25, EIOPA has the power to set up and coordinate collaboration platforms to enhance collaboration between the relevant supervisory authorities where an insurance or reinsurance undertaking carries out, or intends to carry out, activities which are based on the freedom to provide services or the freedom of establishment. However, in view of the complexity of the supervisory issues dealt with within those platforms, in In several cases, national supervisory authorities fail to reach a common view on how to address issues related to an insurance or reinsurance undertaking which is operating on a cross-border basis. In the event that the supervisory authorities involved in the collaboration platforms cannot reach an agreement on issues related to an insurance or reinsurance undertaking which is operating on a cross- border basis, EIOPA should have the power to settle the disagreement in accordance with Article 19 of Regulation (EU) No 1094/2010. Further, the set-up and operation of collaboration platforms on an ad-hoc basis did not sufficiently address the need for coordination and collaboration between supervisory authorities. In order to improve the functioning of the platforms and the effective and efficient exchange of information, technology- based and digital solutions should be used. Standing digital collaboration platforms facilitated by EIOPA enable the efficient exchange of regularly available supervisory data, reports on the supervisory review process, coordination of supervisory activity and relevant market data can be shared. __________________ 25 Directive (EU) 2019/2177 of the European Parliament and of the Council of 18 December 2019 amending Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), Directive 2014/65/EU on markets in financial instruments and Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money- laundering or terrorist financing (OJ L 334, 27.12.2019, p. 155).
Amendment 279 #
Proposal for a directive
Recital 58
Recital 58
(58) Under Directive 2009/138/EC, insurance or reinsurance undertakings are not required to provide information on the conduct of their business to the supervisory authorities of the host Member States in a timely manner. Such information may only be obtained by requesting it to the supervisory authority of the home Member State. However, such an approach does not ensure access to information in a reasonable period of time. TherefoEIOPA should be mandated to identify the information which should be shared between concerned supervisory authorities via collaboration platforms. In determining the data to be shared, EIOPA shall ensure that regularly available data is shared, the supervisory authorities of the host Member States, like the supervisory authority of the home Member State, should also have the power to directly request information to insurance or reinsurance undertakings in a timely mannerwhich allows all concerned supervisory authorities to carry out their respective mandates.
Amendment 280 #
Proposal for a directive
Recital 59
Recital 59
(59) Where an insurance or reinsurance undertaking carries out significant cross- border activities in a host Member State, theany concerned supervisory authority of that Member State should have the power to request basicadditional information, which is not already shared through the collaboration platform, from the supervisory authority of the home Member State on the solvency position of that insurance or reinsurance undertaking. Where thea concerned supervisory authority of the host Member State has serious concerns regarding thate solvency position, it should have the power to request the carrying out of a joint on-site inspection together with the supervisory authority of the home Member State, where there is a significant non-compliance with the Solvency Capital Requirement. EIOPA should be invited to participate. In this regard, EIOPA should indicate as soon as practicable whether it intends to participateThe home supervisory authority should coordinate a joint on-site inspection inviting all concerned supervisory authorities and EIOPA. Supervisory authorities should agree on the objectives of the onsite inspection before it is carried out. The home supervisory authority should inform all concerned supervisory authorities about the outcome of the inspection. Where supervisory authorities disagree on the opportunity to carry out a joint on-site inspection, its objectives or findings, EIOPA should have the power to settle the disagreement in accordance with Article 19 of Regulation (EU) No 1094/2010.
Amendment 287 #
Proposal for a directive
Recital 67
Recital 67
(67) Under current rules, participating insurance and reinsurance undertakings are granted limited possibilities to use simplified calculations for the purpose of determining their group solvency when method 1, namely accounting consolidation-based method, is used. This generates disproportionate burden, in particular when groups hold participations in related undertakings that are very small in size. Therefore, subject to prior supervisory approvalclassified as Low-Risk Profile Undertakings. Therefore, participating undertakings should be allowed to integrate related undertakings whose size is immaterial in their group solvency by using simplified approaches.
Amendment 318 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Directive 2009/138/EC
Article 13 – paragraph 1 – point 10a
Article 13 – paragraph 1 – point 10a
(10a) ‘low-risk profile undertaking’ means an insurance and reinsurance undertaking that meets the conditions set out in Article 29a and has been classified as such in accordance with Article 29b and captive insurance and reinsurance undertakings;
Amendment 320 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Directive 2009/138/EC
Article 13 – paragraph 1 – point 10a a (new)
Article 13 – paragraph 1 – point 10a a (new)
Amendment 348 #
Proposal for a directive
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Directive 2009/138/EC
Article 26 – paragraph 4
Article 26 – paragraph 4
4. Where several supervisory authorities need to be consulted pursuant to paragraph 1, any supervisory authority concerned may request additional information from the supervisory authority of the home Member State to jointly assess the application for authorisation. The supervisory authority of the home Member State shall consider the views of all concerned supervisors when taking its final decision including the determination of “significant cross-border activities”. The supervisory authority of the home Member States shall consider the conclusions of the joint assessment when taking its final decisionnotify all concerned supervisory authorities about the outcome and reason for its decision to all supervisory authorities consulted pursuant to paragraph 1 and to EIOPA.;
Amendment 351 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 a (new)
Article 1 – paragraph 1 – point 11 a (new)
Directive 2009/138/EC
Article 27 a (new)
Article 27 a (new)
(11a) the following Article is inserted: ‘Article 27a Additional objectives of supervision Without prejudice to the main objective of supervision as set out in Article 27, Member States shall ensure that, in the exercise of their general duties, supervisory authorities shall duly consider the potential impact of their decisions on: (a) the competitiveness of the Union’s insurance and reinsurance undertakings in the global market and fair competition across the single market; (b) the stability of the financial systems concerned in the European Union, in particular in emergency situations, taking into account the information available at the relevant time. In times of exceptional movements in the financial markets, supervisory authorities shall take into account the potential pro- cyclical effects of their actions.’
Amendment 355 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1 – point a – subparagraph 1 – point ii
Article 29a – paragraph 1 – subparagraph 1 – point a – subparagraph 1 – point ii
Amendment 362 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1 – point b – subparagraph 1 – point ii
Article 29a – paragraph 1 – subparagraph 1 – point b – subparagraph 1 – point ii
Amendment 370 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point v
Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point v
Amendment 379 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 3 – point a
Article 29a – paragraph 3 – point a
Amendment 380 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29b – paragraph 1
Article 29b – paragraph 1
1. Member States shall ensure that insurance and reinsurance undertakings complying with the conditions set out in Article 29a(1) and (3) may notify the supervisory authority of such compliance with a view to beand classifiedcation as low-risk profile undertakings.
Amendment 381 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29b – paragraph 2 – point b
Article 29b – paragraph 2 – point b
Amendment 387 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29c – paragraph 2
Article 29c – paragraph 2
Amendment 396 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2009/138/EC
Article 33a – paragraph 1 – subparagraph 1
Article 33a – paragraph 1 – subparagraph 1
1. In the event of significant cross- border activities carried out by insurance and reinsurance undertakings under the right of establishment or the freedom to provide services, the supervisory authority of the home Member State shall cooperate with the supervisory authority of the host Member State to assess whether the insurance undertaking has a clear understanding of the risks that it faces, or may face, in the host Member State.
Amendment 399 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2009/138/EC
Article 33a – paragraph 1 – subparagraph 1 a (new)
Article 33a – paragraph 1 – subparagraph 1 a (new)
1 a. The supervisory authority of the host Member State shall be obliged to cooperate with the supervisory authority of the home Member State.
Amendment 401 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2009/138/EC
Article 33a – paragraph 1 – subparagraph 2 – point b
Article 33a – paragraph 1 – subparagraph 2 – point b
(b) outsourcing arrangements and distribution partnerships;
Amendment 432 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point b
Article 1 – paragraph 1 – point 21 – point b
Directive 2009/138/EC
Article 41 – paragraph 2a – subparagraph 2 – introductory part
Article 41 – paragraph 2a – subparagraph 2 – introductory part
When the undertaking has been classified as a low-risk profile undertakingre an insurance or reinsurance undertaking is a low-risk profile undertaking pursuant to Article 29a-29c or eligible to avail of proportionate measures pursuant to Article 29d, the persons responsible for the key functions of risk management, actuarial and compliance function may also perform any other key function different from internal audit, any other non-key function or be a member of the administrative, management or supervisory body provided that the following conditions are met:
Amendment 554 #
Proposal for a directive
Article 1 – paragraph 1 – point 36 a (new)
Article 1 – paragraph 1 – point 36 a (new)
Directive 2009/138/EC
Article 77 – paragraph 3 a (new)
Article 77 – paragraph 3 a (new)
3a. The risk margin for the entire portfolio of insurance and reinsurance obligations shall be calculated using the following formula: RM = CoC * Σt≥0 (0.9t*SCR(t)/((1+r(t+1))t+1) Where (a) CoC denotes the Cost-of-Capital rates (b) the sum covers all integers including zero (c) SCR(t) denotes the Solvency Capital Requirement after t years (d) r(t+1) denotes the basic risk-free interest rate for the maturity of t+1 years.
Amendment 557 #
Proposal for a directive
Article 1 – paragraph 1 – point 36 a (new)
Article 1 – paragraph 1 – point 36 a (new)
Directive 2009/138/EC
Article 77 – paragraph 5 a (new)
Article 77 – paragraph 5 a (new)
5a. The Cost-of-Capital rate referred to in paragraph 5 shall be assumed to be equal to 4%.
Amendment 632 #
Proposal for a directive
Article 1 – paragraph 1 – point 45
Article 1 – paragraph 1 – point 45
Directive 2009/138/EC
Article 109 – paragraph 1 – subparagraph 1
Article 109 – paragraph 1 – subparagraph 1
1. Insurance and reinsurance undertakings may use a simplified calculation for a specific sub-module or risk module where the nature, scale and complexity of the risks they face justifies it and where it would be disproportionate to require all insurance and reinsurance undertakings to apply the standardised calculation.
Amendment 635 #
Proposal for a directive
Article 1 – paragraph 1 – point 45
Article 1 – paragraph 1 – point 45
Directive 2009/138/EC
Article 109 – paragraph 3 a (new)
Article 109 – paragraph 3 a (new)
3a. Notwithstanding paragraphs 2 and 3 of this Article, low-risk profile undertakings shall be considered eligible to use a simplified calculation for a specific sub-module or risk module.
Amendment 692 #
Proposal for a directive
Article 1 – paragraph 1 – point 57
Article 1 – paragraph 1 – point 57
Directive 2009/138/EC
Article 152a – paragraph 2
Article 152a – paragraph 2
2. The supervisory authority of the home Member State shall notify EIOPA and the supervisory authority of the relevant host Member State if it identifies deteriorating financial conditions or other emerging risks, including those concerning consumer protection, posed by an insurance or reinsurance undertaking carrying out activities which are based on the freedom to provide services or the freedom of establishment and which may have a cross-border effect. The supervisory authority of the host Member State mayshall also notify EIOPA and the supervisory authority of the relevant home Member State where it has serious and reasoned concerns with regard to consumer protection. The supervisory authorities may refer the matter to EIOPA and request its assistance where no bilateral solution can be found.;
Amendment 694 #
Proposal for a directive
Article 1 – paragraph 1 – point 58
Article 1 – paragraph 1 – point 58
Directive 2009/138/EC
Article 152b – paragraph 1
Article 152b – paragraph 1
1. EIOPA may, in the case of justified concerns about negative effects on policy holders, on its own initiative or at the request of one or more of the relevant supervisory authorities,shall set up and coordinate a collaboration platform to strengthen the exchange of information and to enhance collaboration between the relevant supervisory authorities where an insurance or reinsurance undertaking carries out, or intends to carry out, activities which are based on the freedom to provide services or the freedom of establishment and where: (a) such activities are of relevance with respect to the host Member State’s market; (b) a notification by the supervisory authority of the home Member State has been made under Article 152a(2) of deteriorating financial conditions or other emerging risks; or (c) the matter has been referred to EIOPA under Article 152a(2). (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630). Or. en
Amendment 695 #
Proposal for a directive
Article 1 – paragraph 1 – point 58
Article 1 – paragraph 1 – point 58
Amendment 696 #
Proposal for a directive
Article 1 – paragraph 1 – point 58
Article 1 – paragraph 1 – point 58
Directive 2009/138/EC
Article 152b – paragraph 3
Article 152b – paragraph 3
3. The setting up of a collaboration platform pursuant to paragraphs 1 and 2 is without prejudice to the supervisory mandate of the supervisory authorities of the home Member State and host Member State provided for in this Directive. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)Or. en
Amendment 697 #
Proposal for a directive
Article 1 – paragraph 1 – point 58
Article 1 – paragraph 1 – point 58
4. Without prejudice to Article 35 of Regulation(EU) No 1094/2010, at the request of EIOPA, the relevant supervisory authorities shall provide all necessary information in a timely manner to allow for the proper functioning of the collaboration platform. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)Or. en
Amendment 698 #
Proposal for a directive
Article 1 – paragraph 1 – point 58
Article 1 – paragraph 1 – point 58
Directive 2009/138/EC
Article 152b – paragraph 5
Article 152b – paragraph 5
5. Where two or more relevant authorities of a collaboration platform disagree about the procedure or content of an action to be taken, or inaction, in relation to an insurance or reinsurance undertaking, EIOPA mayshall, at the request of any relevant authority or on its own initiative, assist the authorities in reaching an agreement in accordance with Article 19(1) of Regulation (EU) No 1094/2010.
Amendment 702 #
Proposal for a directive
Article 1 – paragraph 1 – point 58
Article 1 – paragraph 1 – point 58
Directive 2009/138/EC
Article 152b – paragraph 6
Article 152b – paragraph 6
6. In the event of disagreement within the collaboration platform and where there are serious concerns about negative effects on policyholders or about the content of an action or inaction to be taken in relation to an insurance or reinsurance undertaking, EIOPA may decide, on a concerned supervisory authority may request the supervisory authoritsy own initiative, f the home Member State to initiate and coordinate joint on-site inspections. It shall invite tThe supervisory authority of the home Member State as well as other relevantshall invite all concerned supervisory authorities of the collaboration platform to contribute to and participate in those joint on-site inspections.;
Amendment 704 #
Proposal for a directive
Article 1 – paragraph 1 – point 59
Article 1 – paragraph 1 – point 59
Directive 2009/138/EC
Article 153 – paragraph 1
Article 153 – paragraph 1
The supervisory authority of the host Member State may require the information which it is entitled to request with regard to the business of an insurance undertaking operating in the territory of that Member State either from the supervisory authority of the home Member State of that undertaking or from the insurance undertaking. That information shall be supplied within a reasonable period of time in the official language or languages of the host Member State, or in another language accepted by the supervisory authority of the host Member State. Where tThe supervisory authority of the hostme Member State addresses the insurance undertaking directly, it shall inform theshall notify all concerned supervisory authorityies ofn the home Member State about the information request.collaboration platform;
Amendment 706 #
Proposal for a directive
Article 1 – paragraph 1 – point 60
Article 1 – paragraph 1 – point 60
Directive 2009/138/EC
Article 159a
Article 159a
Amendment 729 #
Proposal for a directive
Article 1 – paragraph 1 – point 63
Article 1 – paragraph 1 – point 63
Directive 2009/138/EC
Article 213a – paragraph 1 – point c
Article 213a – paragraph 1 – point c
Amendment 731 #
Proposal for a directive
Article 1 – paragraph 1 – point 63
Article 1 – paragraph 1 – point 63
Directive 2009/138/EC
Article 213a – paragraph 1 – point d
Article 213a – paragraph 1 – point d
Amendment 772 #
Proposal for a directive
Article 1 – paragraph 1 – point 82
Article 1 – paragraph 1 – point 82
Directive 2009/138/EC
Article 254 – paragraph 3
Article 254 – paragraph 3
3. The participating insurance and reinsurance undertaking, the insurance holding company and the mixed financial holding company shall submit to the group supervisor the information referred to in this Article on an annual basis within 20 weeks after the undertaking's financial year end, and, when the information referred to in this Article is required on quarterly basis, within 113 weeks after the end of each quarter.;