What changed between the plenary report and the adopted text

Removed:‘Article 35a Exemptions and limitations to quantitative regular supervisory reporting granted by supervisory authorities

Removed:‘1. Without prejudice to Article 129(4), where the predefined periods referred to in Article 35(2), point (a)(i) are shorter than one year the supervisory authorities concerned may limit regular supervisory reporting, where:

Removed:(a) the submission of that information would be overly burdensome in relation to the nature, scale and complexity of the risks inherent in the business of the undertaking;

Removed:(b) the information is reported at least annually.

Removed:That limitation to regular supervisory reporting shall be granted only to undertakings that collectively do not represent more than 20 % of a Member State’s life and non-life insurance 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.

Removed:When determining the eligibility of undertakings for those limitations, supervisory authorities shall give priority to low-risk profile undertakings.

Removed:2. The supervisory authorities concerned may limit regular supervisory reporting, or exempt insurance and reinsurance undertakings from reporting on an item-by-item basis, where:

Removed:(a) the submission of that information would be overly burdensome in relation to the nature, scale and complexity of the risks inherent in the business of the undertaking;

Removed:(b) the submission of that information is not necessary for the effective supervision of the undertaking;

Removed:(c) the exemption does not undermine the stability of the financial systems concerned in the Union; and

Removed:(d) the undertaking is able to provide the information upon request.

Removed:▌

Removed:The exemption from reporting on an item-by-item basis shall be granted only to undertakings that collectively do not represent more than 20 % of a Member State’s life and non-life insurance or 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. When determining the eligibility of undertakings for those limitations or exemptions, supervisory authorities shall give priority to low-risk profile undertakings.

Removed:3. Captive insurance undertakings and captive reinsurance undertakings shall be exempted from regular supervisory reporting on an item-by-item basis where the predefined periods referred to in Article 35(2), point (a)(i), are shorter than one year, provided that they comply with both of the following conditions:

Removed:(a) all insured persons and beneficiaries are any of the following:

Removed:– legal entities of the group of which the captive insurance undertaking or captive reinsurance undertaking is part,

Removed:– natural persons eligible to be covered under that group’s insurance policies, provided that the business covering those natural persons remains below 5% of technical provisions;

Removed:(b) the insurance obligations and the insurance contracts underlying the reinsurance obligations of the captive insurance undertaking or captive reinsurance undertaking do not consist of any compulsory third-party liability insurance.’

Removed:3a. The limitation to and exemption from regular supervisory reporting shall not apply to undertakings for which a capital add-on has been set.

Removed:4. For the purposes of paragraphs 1 and 2, as part of the supervisory review process, in respect of undertakings classified as low-risk profile undertakings, supervisory authorities shall assess whether the submission of information would be overly burdensome in relation to the nature, scale and complexity of the risks of the undertaking, taking into account, at least:

Removed:(a) the market risks that the investments of the undertaking give rise to;

Removed:(b) the level of risk concentrations;

Removed:(c) possible effects of the management of the assets of the undertaking on financial stability;

Removed:(d) the systems and structures of the undertaking to provide information for supervisory purposes and the written policy referred to in paragraph 5.

Removed:5. For the purposes of paragraphs 1 and 2, as part of the supervisory review process, in respect of undertakings not classified as low-risk profile undertakings, supervisory authorities shall assess whether the submission of information would be overly burdensome in relation to the nature, scale and complexity of the risks of the undertaking, taking into account, at least:

Removed:(a) the volume of premiums, technical provisions and assets of the undertaking;

Removed:(b) the volatility of the claims and benefits covered by the undertaking;

Removed:(c) the total number of classes of life and non-life insurance for which authorisation is granted;

Removed:(d) the appropriateness of the system of governance of the undertaking;

Removed:(e) the level of own funds covering the Solvency Capital Requirement and the Minimum Capital Requirement;

Removed:(f) whether the undertaking is a captive insurance undertaking or a captive reinsurance undertaking only covering risks associated with the industrial or commercial group to which it belongs.

Removed:6. In order to ensure the coherent and consistent application of paragraphs 1 to 5 of this Article, EIOPA shall issue guidelines in accordance with Article 16 of Regulation (EU) 1094/2010 to further specify:

Removed:(a) the methods for determining the market shares referred to in paragraph 1, second subparagraph, and in paragraph 2, third subparagraph, of this Article;

Removed:(b) the process to be used by the supervisory authorities to inform the insurance and reinsurance undertakings about any limitation or exemption referred to in this Article.’;

Removed:(18) the following Article 35b is inserted:

Removed:‘Article 35b Reporting deadlines

Removed:1. Member States shall ensure that insurance and reinsurance undertakings submit the information referred to in Article 35(1) to (4) on an annual or less frequent basis within 16 weeks following the undertaking's financial year end.

Removed:2. Member States shall ensure that insurance and reinsurance undertakings submit the information referred to in Article 35(1) to (4) on a quarterly basis no later than five weeks after the end of each quarter.

Removed:3. Member States shall ensure that insurance and reinsurance undertakings submit the regular supervisory report referred to in Article 35(5a) no later than 18 weeks after the undertaking's financial year ends.

Removed:4. The Commission, after having consulted EIOPA, may, in accordance with Article 301a, adopt delegated acts amending this Directive, in order to temporarily change the deadlines laid down in paragraphs 1, 2, and 3 of this Article, provided that the change is necessary due to sanitary emergencies, natural catastrophes or other extreme events, which prevent insurance and reinsurance undertakings from submitting the information within the specified deadlines.

Removed:4a. At the request of at least one Member State, the Commission shall consult EIOPA with a view to determining whether the conditions for a temporary change of the submission deadlines laid down in paragraphs 1, 2, and 3 of this Article have been fulfilled.’;

Removed:(19) in Article 36(2), point (a) is replaced by the following:

Removed:‘(a) the system of governance, including the fit and proper requirements, as set out in Article 42 and the own-risk and solvency assessment, as set out in Chapter IV, Section 2;’;

Removed:(20) Article 37 is amended as follows:

Removed:(a) in paragraph 1, the following point (e) is added:

Removed:‘(e) the insurance or reinsurance undertaking applies one of the transitional measures referred to in Articles 308c and 308d and all of the following conditions are met:

Removed:(i) the undertaking would not comply with the Solvency Capital Requirement without application of the transitional measure;

Removed:(ii) the undertaking has failed to submit to the supervisory authority either the initial phasing-in plan within the required period as set out in of Article 308e, second paragraph, or the required annual report as set out the third paragraph of that Article.’;

Removed:(b) in paragraph 2, the third subparagraph is replaced by the following:

Removed:‘In the circumstances set out in paragraph 1, points (d) and (e), the capital add-on shall be proportionate to the material risks arising from the deviation and respectively the non-compliance referred to in those points.’;

Removed:(20a) in Article 40, the following paragraphs are added:

Removed:“The members of the administrative, management and supervisory bodies of the insurance or reinsurance undertaking shall at all times be of good repute and possess collectively sufficient knowledge, skills and experience to perform their duties.

Removed:Members of the administrative, management and supervisory bodies shall not have been convicted for offences relating to money laundering or terrorist financing or other offences that would question their good repute.”;

Removed:(21) Article 41 is amended as follows:

Removed:(-a) in paragraph 1, the first subparagraph is replaced by the following:

Removed:‘Member States shall require all insurance and reinsurance undertakings to have in place an effective system of governance which provides for sound and prudent management of the business. For environmental, social and governance risks, undertakings shall explicitly take into account the short-term, medium-term and long-term horizon when assessing the possible materialisation of those risks.’;

Removed:(a) in paragraph 1, the third subparagraph is replaced by the following:

Removed:‘The system of governance shall be subject to regular internal review. Such internal review shall include an assessment on the adequacy of the composition, effectiveness and internal governance of the administrative, management or supervisory body taking into account the nature, scale and complexity of the risks inherent in the undertaking’s business.’;

Removed:Insurance and reinsurance undertakings shall set individual quantitative objectives in view of improving gender-balanced representation of both sexes within their governance structures.’;

Removed:(b) the following paragraph 2a is inserted: