Directive 2009/138/EC of the European Parliament and of the Council of 25 Novembe... (32009L0138)
Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast) (Text with EEA relevance)
- DIRECTIVE 2009/138/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
- of 25 November 2009
- on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)
- (recast)
- (Text with EEA relevance)
- TITLE I
- GENERAL RULES ON THE TAKING-UP AND PURSUIT OF DIRECT INSURANCE AND REINSURANCE ACTIVITIES
- CHAPTER I
- Subject matter, scope and definitions
- Section 1
- Subject matter and scope
- Article 1
- Subject matter
- Article 2
- Scope
- Section 2
- Exclusions from scope
- Subsection 1
- General
- Article 3
- Statutory systems
- Article 4
- Exclusion from scope due to size
- Subsection 2
- Non-life
- Article 5
- Operations
- Article 6
- Assistance
- Article 7
- Mutual undertakings
- Article 8
- Institutions
- Subsection 3
- Life
- Article 9
- Operations and activities
- Article 10
- Organisations, undertakings and institutions
- Subsection 4
- Reinsurance
- Article 11
- Reinsurance
- Article 12
- Reinsurance undertakings closing their activity
- Section 3
- Definitions
- Article 13
- Definitions
- CHAPTER II
- Taking-up of business
- Article 14
- Principle of authorisation
- Article 15
- Scope of authorisation
- Article 16
- Ancillary risks
- Article 17
- Legal form of the insurance or reinsurance undertaking
- Article 18
- Conditions for authorisation
- Article 19
- Close links
- Article 20
- Head office of insurance undertakings and reinsurance undertakings
- Article 21
- Policy conditions and scales of premiums
- Article 22
- Economic requirements of the market
- Article 23
- Scheme of operations
- Article 24
- Shareholders and members with qualifying holdings
- Article 25
- Refusal of authorisation
- Article 26
- Prior consultation of the authorities of other Member States
- CHAPTER III
- Supervisory authorities and general rules
- Article 27
- Main objective of supervision
- Article 28
- Financial stability and pro-cyclicality
- Article 29
- General principles of supervision
- Article 30
- Supervisory authorities and scope of supervision
- Article 31
- Transparency and accountability
- Article 32
- Prohibition of refusal of reinsurance contracts or retrocession contracts
- Article 33
- Supervision of branches established in another Member State
- Article 34
- General supervisory powers
- Article 35
- Information to be provided for supervisory purposes
- Article 36
- Supervisory review process
- Article 37
- Capital add-on
- Article 38
- Supervision of outsourced functions and activities
- Article 39
- Transfer of portfolio
- CHAPTER IV
- Conditions governing business
- Section 1
- Responsibility of the administrative, management or supervisory body
- Article 40
- Responsibility of the administrative, management or supervisory body
- Section 2
- System of governance
- Article 41
- General governance requirements
- Article 42
- Fit and proper requirements for persons who effectively run the undertaking or have other key functions
- Article 43
- Proof of good repute
- Article 44
- Risk management
- Article 45
- Own risk and solvency assessment
- Article 46
- Internal control
- Article 47
- Internal audit
- Article 48
- Actuarial function
- Article 49
- Outsourcing
- Article 50
- Implementing measures
- Section 3
- Public disclosure
- Article 51
- Report on solvency and financial condition: contents
- Article 52
- Information for and reports by CEIOPS
- Article 53
- Report on solvency and financial condition: applicable principles
- Article 54
- Report on solvency and financial condition: updates and additional voluntary information
- Article 55
- Report on solvency and financial condition: policy and approval
- Article 56
- Solvency and financial condition report: implementing measures
- Section 4
- Qualifying holdings
- Article 57
- Acquisitions
- Article 58
- Assessment period
- Article 59
- Assessment
- Article 60
- Acquisitions by regulated financial undertakings
- Article 61
- Information to the supervisory authority by the insurance or reinsurance undertaking
- Article 62
- Qualifying holdings, powers of the supervisory authority
- Article 63
- Voting rights
- Section 5
- Professional secrecy, exchange of information and promotion of supervisory convergence
- Article 64
- Professional secrecy
- Article 65
- Exchange of information between supervisory authorities of Member States
- Article 66
- Cooperation agreements with third countries
- Article 67
- Use of confidential information
- Article 68
- Exchange of information with other authorities
- Article 69
- Disclosure of information to government administrations responsible for financial legislation
- Article 70
- Transmission of information to central banks and monetary authorities
- Article 71
- Supervisory convergence
- Section 6
- Duties of auditors
- Article 72
- Duties of auditors
- CHAPTER V
- Pursuit of life and non-life insurance activity
- Article 73
- Pursuit of life and non-life insurance activity
- Article 74
- Separation of life and non-life insurance management
- CHAPTER VI
- Rules relating to the valuation of assets and liabilities, technical provisions, own funds, Solvency Capital Requirement, Minimum Capital Requirement and investment rules
- Section 1
- Valuation of assets and liabilities
- Article 75
- Valuation of assets and liabilities
- Section 2
- Rules relating to technical provisions
- Article 76
- General provisions
- Article 77
- Calculation of technical provisions
- Article 78
- Other elements to be taken into account in the calculation of technical provisions
- Article 79
- Valuation of financial guarantees and contractual options included in insurance and reinsurance contracts
- Article 80
- Segmentation
- Article 81
- Recoverables from reinsurance contracts and special purpose vehicles
- Article 82
- Data quality and application of approximations, including case-by-case approaches, for technical provisions
- Article 83
- Comparison against experience
- Article 84
- Appropriateness of the level of technical provisions
- Article 85
- Increase of technical provisions
- Article 86
- Implementing measures
- Section 3
- Own funds
- Subsection 1
- Determination of own funds
- Article 87
- Own funds
- Article 88
- Basic own funds
- Article 89
- Ancillary own funds
- Article 90
- Supervisory approval of ancillary own funds
- Article 91
- Surplus funds
- Article 92
- Implementing measures
- Subsection 2
- Classification of own funds
- Article 93
- Characteristics and features used to classify own funds into tiers
- Article 94
- Main criteria for the classification into tiers
- Article 95
- Classification of own funds into tiers
- Article 96
- Classification of specific insurance own-fund items
- Article 97
- Implementing measures
- Subsection 3
- Eligibility of own funds
- Article 98
- Eligibility and limits applicable to Tiers 1, 2 and 3
- Article 99
- Implementing measures
- Section 4
- Solvency capital requirement
- Subsection 1
- General provisions for the solvency capital requirement using the standard formula or an internal model
- Article 100
- General provisions
- Article 101
- Calculation of the Solvency Capital Requirement
- Article 102
- Frequency of calculation
- Subsection 2
- Solvency capital requirement standard formula
- Article 103
- Structure of the standard formula
- Article 104
- Design of the Basic Solvency Capital Requirement
- Article 105
- Calculation of the Basic Solvency Capital Requirement
- Article 106
- Calculation of the equity risk sub-module: symmetric adjustment mechanism
- Article 107
- Capital requirement for operational risk
- Article 108
- Adjustment for the loss-absorbing capacity of technical provisions and deferred taxes
- Article 109
- Simplifications in the standard formula
- Article 110
- Significant deviations from the assumptions underlying the standard formula calculation
- Article 111
- Implementing measures
- Subsection 3
- Solvency capital requirement full and partial internal models
- Article 112
- General provisions for the approval of full and partial internal models
- Article 113
- Specific provisions for the approval of partial internal models
- Article 114
- Implementing measures
- Article 115
- Policy for changing the full and partial internal models
- Article 116
- Responsibilities of the administrative, management or supervisory bodies
- Article 117
- Reversion to the standard formula
- Article 118
- Non-compliance of the internal model
- Article 119
- Significant deviations from the assumptions underlying the standard formula calculation
- Article 120
- Use test
- Article 121
- Statistical quality standards
- Article 122
- Calibration standards
- Article 123
- Profit and loss attribution
- Article 124
- Validation standards
- Article 125
- Documentation standards
- Article 126
- External models and data
- Article 127
- Implementing measures
- Section 5
- Minimum capital requirement
- Article 128
- General provisions
- Article 129
- Calculation of the Minimum Capital Requirement
- Article 130
- Implementing measures
- Article 131
- Transitional arrangements regarding compliance with the Minimum Capital Requirement
- Section 6
- Investments
- Article 132
- Prudent person principle
- Article 133
- Freedom of investment
- Article 134
- Localisation of assets and prohibition of pledging of assets
- Article 135
- Implementing measures
- CHAPTER VII
- Insurance and reinsurance undertakings in difficulty or in an irregular situation
- Article 136
- Identification and notification of deteriorating financial conditions by the insurance and reinsurance undertaking
- Article 137
- Non-Compliance with technical provisions
- Article 138
- Non-Compliance with the Solvency Capital Requirement
- Article 139
- Non-Compliance with the Minimum Capital Requirement
- Article 140
- Prohibition of free disposal of assets located within the territory of a Member State
- Article 141
- Supervisory powers in deteriorating financial conditions
- Article 142
- Recovery plan and finance scheme
- Article 143
- Implementing measures
- Article 144
- Withdrawal of authorisation
- CHAPTER VIII
- Right of establishment and freedom to provide services
- Section 1
- Establishment by insurance undertakings
- Article 145
- Conditions for branch establishment
- Article 146
- Communication of information
- Section 2
- Freedom to provide services: by insurance undertakings
- Subsection 1
- General provisions
- Article 147
- Prior notification to the home Member State
- Article 148
- Notification by the home Member State
- Article 149
- Changes in the nature of the risks or commitments
- Subsection 2
- Third party motor vehicle liability
- Article 150
- Compulsory insurance on third party motor vehicle liability
- Article 151
- Non-discrimination of persons pursuing claims
- Article 152
- Representative
- Section 3
- Competencies of the supervisory authorities of the host member state
- Subsection 1
- Insurance
- Article 153
- Language
- Article 154
- Prior notification and prior approval
- Article 155
- Insurance undertakings not complying with the legal provisions
- Article 156
- Advertising
- Article 157
- Taxes on premiums
- Subsection 2
- Reinsurance
- Article 158
- Reinsurance undertakings not complying with the legal provisions
- Section 4
- Statistical information
- Article 159
- Statistical information on cross-border activities
- Section 5
- Treatment of contracts of branches in winding-up proceedings
- Article 160
- Winding-up of insurance undertakings
- Article 161
- Winding-up of reinsurance undertakings
- CHAPTER IX
- Branches established within the community and belonging to insurance or reinsurance undertakings with head offices situated outside the community
- Section 1
- Taking-up of business
- Article 162
- Principle of authorisation and conditions
- Article 163
- Scheme of operations of the branch
- Article 164
- Transfer of portfolio
- Article 165
- Technical provisions
- Article 166
- Solvency Capital Requirement and Minimum Capital Requirement
- Article 167
- Advantages to undertakings authorised in more than one Member State
- Article 168
- Accounting, prudential and statistical information and undertakings in difficulty
- Article 169
- Separation of non-life and life business
- Article 170
- Withdrawal of authorisation for undertakings authorised in more than one Member State
- Article 171
- Agreements with third countries
- Section 2
- Reinsurance
- Article 172
- Equivalence
- Article 173
- Prohibition of pledging of assets
- Article 174
- Principle and conditions for conducting reinsurance activity
- Article 175
- Agreements with third countries
- CHAPTER X
- Subsidiaries of insurance and reinsurance undertakings governed by the laws of a third country and acquisitions of holdings by such undertakings
- Article 176
- Information from Member States to the Commission
- Article 177
- Third-country treatment of Community insurance and reinsurance undertakings
- TITLE II
- SPECIFIC PROVISIONS FOR INSURANCE AND REINSURANCE
- CHAPTER I
- Applicable law and conditions of direct insurance contracts
- Section 1
- Applicable law
- Article 178
- Applicable Law
- Section 2
- Compulsory insurance
- Article 179
- Related obligations
- Section 3
- General good
- Article 180
- General good
- Section 4
- Conditions of insurance contracts and scales of premiums
- Article 181
- Non-life insurance
- Article 182
- Life insurance
- Section 5
- Information for policy holders
- Subsection 1
- Non-life insurance
- Article 183
- General Information for policy holders
- Article 184
- Additional information in the case of non-life insurance offered under the right of establishment or the freedom to provide services
- Subsection 2
- Life insurance
- Article 185
- Information for policy holders
- Article 186
- Cancellation period
- CHAPTER II
- Provisions specific to non-life insurance
- Section 1
- General provisions
- Article 187
- Policy Conditions
- Article 188
- Abolition of monopolies
- Article 189
- Participation in national guarantee schemes
- Section 2
- Community co-insurance
- Article 190
- Community co-insurance operations
- Article 191
- Participation in Community co-insurance
- Article 192
- Technical provisions
- Article 193
- Statistical data
- Article 194
- Treatment of co-insurance contracts in winding-up proceedings
- Article 195
- Exchange of information between supervisory authorities
- Article 196
- Cooperation on implementation
- Section 3
- Assistance
- Article 197
- Activities similar to tourist assistance
- Section 4
- Legal expenses insurance
- Article 198
- Scope of this Section
- Article 199
- Separate contracts
- Article 200
- Management of claims
- Article 201
- Free choice of lawyer
- Article 202
- Exception to the free choice of lawyer
- Article 203
- Arbitration
- Article 204
- Conflict of interest
- Article 205
- Abolition of specialisation of legal expenses insurance
- Section 5
- Health insurance
- Article 206
- Health insurance as an alternative to social security
- Section 6
- Insurance against accidents at work
- Article 207
- Compulsory insurance against accidents at work
- CHAPTER III
- Provisions specific to life insurance
- Article 208
- Prohibition on compulsory ceding of part of underwriting
- Article 209
- Premiums for new business
- CHAPTER IV
- Rules specific to reinsurance
- Article 210
- Finite reinsurance
- Article 211
- Special purpose vehicles
- TITLE III
- SUPERVISION OF INSURANCE AND REINSURANCE UNDERTAKINGS IN A GROUP
- CHAPTER I
- Group supervision: definitions, cases of application, scope and levels
- Section 1
- Definitions
- Article 212
- Definitions
- Section 2
- Cases of application and scope
- Article 213
- Cases of application of group supervision
- Article 214
- Scope of group supervision
- Section 3
- Levels
- Article 215
- Ultimate parent undertaking at Community level
- Article 216
- Ultimate parent undertaking at national level
- Article 217
- Parent undertaking covering several Member States
- CHAPTER II
- Financial position
- Section 1
- Group solvency
- Subsection 1
- General provisions
- Article 218
- Supervision of group solvency
- Article 219
- Frequency of calculation
- Subsection 2
- Choice of calculation method and general principles
- Article 220
- Choice of method
- Article 221
- Inclusion of proportional share
- Article 222
- Elimination of double use of eligible own funds
- Article 223
- Elimination of the intra-group creation of capital
- Article 224
- Valuation
- Subsection 3
- Application of the calculation methods
- Article 225
- Related insurance and reinsurance undertakings
- Article 226
- Intermediate insurance holding companies
- Article 227
- Related third-country insurance and reinsurance undertakings
- Article 228
- Related credit institutions, investment firms and financial institutions
- Article 229
- Non-availability of the necessary information
- Subsection 4
- Calculation methods
- Article 230
- Method 1 (Default method): Accounting consolidation-based method
- Article 231
- Group internal model
- Article 232
- Group capital add-on
- Article 233
- Method 2 (Alternative method): Deduction and aggregation method
- Article 234
- Implementing measures
- Subsection 5
- Supervision of group solvency for insurance and reinsurance undertakings that are subsidiaries of an insurance holding company
- Article 235
- Group solvency of an insurance holding company
- Subsection 6
- Supervision of group solvency for groups with centralised risk management
- Article 236
- Subsidiaries of an insurance or reinsurance undertaking: conditions
- Article 237
- Subsidiaries of an insurance or reinsurance undertaking: decision on the application
- Article 238
- Subsidiaries of an insurance or reinsurance undertaking: determination of the Solvency Capital Requirement
- Article 239
- Subsidiaries of an insurance or reinsurance undertaking: non-compliance with the Solvency and Minimum Capital Requirements
- Article 240
- Subsidiaries of an insurance or reinsurance undertaking: end of derogations for a subsidiary
- Article 241
- Subsidiaries of an insurance or reinsurance undertaking: implementing measures
- Article 242
- Review
- Article 243
- Subsidiaries of an insurance holding company
- Section 2
- Risk concentration and intra-group transactions
- Article 244
- Supervision of risk concentration
- Article 245
- Supervision of intra-group transactions
- Section 3
- Risk management and internal control
- Article 246
- Supervision of the system of governance
- CHAPTER III
- Measures to facilitate group supervision
- Article 247
- Group Supervisor
- Article 248
- Rights and duties of the group supervisor and the other supervisors College of supervisors
- Article 249
- Cooperation and exchange of information between supervisory authorities
- Article 250
- Consultation between supervisory authorities
- Article 251
- Requests from the group supervisor to other supervisory authorities
- Article 252
- Cooperation with authorities responsible for credit institutions and investment firms
- Article 253
- Professional secrecy and confidentiality
- Article 254
- Access to information
- Article 255
- Verification of information
- Article 256
- Group solvency and financial condition report
- Article 257
- Administrative, management or supervisory body of insurance holding companies
- Article 258
- Enforcement measures
- Article 259
- Reporting of CEIOPS
- CHAPTER IV
- Third countries
- Article 260
- Parent undertakings outside the Community: verification of equivalence
- Article 261
- Parent undertakings outside the Community: equivalence
- Article 262
- Parent undertakings outside the Community: absence of equivalence
- Article 263
- Parent undertakings outside the Community: levels
- Article 264
- Cooperation with third-country supervisory authorities
- CHAPTER V
- Mixed-activity insurance holding companies
- Article 265
- Intra-group transactions
- Article 266
- Cooperation with third countries
- TITLE IV
- REORGANISATION AND WINDING-UP OF INSURANCE UNDERTAKINGS
- CHAPTER I
- Scope and definitions
- Article 267
- Scope of this Title
- Article 268
- Definitions
- CHAPTER II
- Reorganisation measures
- Article 269
- Adoption of reorganisation measures applicable law
- Article 270
- Information to the supervisory authorities
- Article 271
- Publication of decisions on reorganisation measures
- Article 272
- Information to known creditors right to lodge claims
- CHAPTER III
- Winding-up proceedings
- Article 273
- Opening of winding-up proceedings information to the supervisory authorities
- Article 274
- Applicable law
- Article 275
- Treatment of insurance claims
- Article 276
- Special register
- Article 277
- Subrogation to a guarantee scheme
- Article 278
- Representation of preferential claims by assets
- Article 279
- Withdrawal of the authorisation
- Article 280
- Publication of decisions on winding-up proceedings
- Article 281
- Information to known creditors
- Article 282
- Right to lodge claims
- Article 283
- Languages and form
- Article 284
- Regular information to the creditors
- CHAPTER IV
- Common provisions
- Article 285
- Effects on certain contracts and rights
- Article 286
- Rights in rem of third parties
- Article 287
- Reservation of title
- Article 288
- Set-off
- Article 289
- Regulated markets
- Article 290
- Detrimental acts
- Article 291
- Protection of third-party purchasers
- Article 292
- Lawsuits pending
- Article 293
- Administrators and liquidators
- Article 294
- Registration in a public register
- Article 295
- Professional secrecy
- Article 296
- Treatment of branches of third-country insurance undertakings
- TITLE V
- OTHER PROVISIONS
- Article 297
- Right to apply to the courts
- Article 298
- Cooperation between the Member States and the Commission
- Article 299
- Euro
- Article 300
- Revision of amounts expressed in euro
- Article 301
- Committee procedure
- Article 302
- Notifications submitted prior to entry into force of the laws, regulations and administrative provisions necessary to comply with Articles 57 to 63
- Article 303
- Amendments to Directive 2003/41/EC
- ‘Article 17a
- Available solvency margin
- Article 17b
- Required solvency margin
- Article 17c
- Guarantee fund
- Article 17d
- Required solvency margin for the purpose of Article 17b(3)
- ‘Article 21a
- Review of the amount of the guarantee fund
- Article 21b
- Committee procedure
- Article 304
- Duration-based equity risk sub-module
- TITLE VI
- TRANSITIONAL AND FINAL PROVISIONS
- CHAPTER I
- Transitional provisions
- Section 1
- Insurance
- Article 305
- Derogations and abolition of restrictive measures
- Article 306
- Rights acquired by existing branches and insurance undertakings
- Section 2
- Reinsurance
- Article 307
- Transitional period for Articles 57(3) and 60(6) of Directive 2005/68/EC
- Article 308
- Right acquired by existing reinsurance undertakings
- CHAPTER II
- Final provisions
- Article 309
- Transposition
- Article 310
- Repeal
- Article 311
- Entry into force
- Article 312
- Addressees
- ANNEX I
- CLASSES OF NON-LIFE INSURANCE
- A. Classification of risks according to classes of insurance
- 1. Accident
- (including industrial injury and occupational diseases):
- 2. Sickness:
- 3. Land vehicles
- (other than railway rolling stock)
- 4. Railway rolling stock
- 5. Aircraft
- 6. Ships (sea, lake and river and canal vessels)
- 7. Goods in transit
- (including merchandise, baggage, and all other goods)
- 8. Fire and natural forces
- 9. Other damage to property
- 10. Motor vehicle liability
- 11. Aircraft liability
- 12. Liability for ships (sea, lake and river and canal vessels)
- 13. General liability
- 14. Credit:
- 15. Suretyship:
- 16. Miscellaneous financial loss:
- 17. Legal expenses
- 18. Assistance
- B. Description of authorisations granted for more than one class of insurance
- ANNEX II
- CLASSES OF LIFE INSURANCE
- ANNEX III
- LEGAL FORMS OF UNDERTAKINGS
- A. Forms of non-life insurance undertaking:
- B. Forms of life insurance undertaking:
- C. Forms of reinsurance undertaking:
- ANNEX IV
- SOLVENCY CAPITAL REQUIREMENT (SCR) STANDARD FORMULA
- 1. Calculation of the Basic Solvency Capital Requirement
- 2. Calculation of the non-life underwriting risk module
- 3. Calculation of the life underwriting risk module
- 4. Calculation of the market risk module
- ANNEX V
- GROUPS OF NON-LIFE INSURANCE CLASSES FOR THE PURPOSES OF ARTICLE 159
- ANNEX VI
- PART A
- Repealed Directives with list of their successive amendments
- PART B
- List of time-limits for transposition into national law
- ANNEX VII
- CORRELATION TABLE
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