What changed between the plenary report and the adopted text

Removed:(e) the following paragraph 8 is added:

Removed:‘8. For the purpose of paragraph 1, points (d) and (e), of this Article, where authorities other than the supervisory authorities are entrusted with a macroprudential mandate, Member States shall ensure that the supervisory authorities share the findings of their macroprudential assessments of the own-risk and solvency assessment by insurance and reinsurance undertakings, as referred to in Article 45, with the relevant national authorities with a macroprudential mandate.

Removed:Member States shall ensure that supervisory authorities cooperate with any national authorities with a macroprudential mandate to analyse the results and, where applicable, to identify any macroprudential concerns on how undertakings may affect macroeconomic and financial markets’ developments.

Removed:Member States shall ensure that the supervisory authorities share any macroprudential concerns and relevant input parameters relevant for the assessment with the undertaking concerned.’;

Removed:(25) the following Article 45a is inserted:

Removed:‘Article 45a Climate change scenario analysis

Removed:1. For the purposes of the identification and assessment of risks referred to in Article 45(2), the undertaking concerned shall also assess whether it has any material exposure to climate change risks. The undertaking shall demonstrate the materiality of its exposure to climate change risks in the assessment referred to in Article 45(1).

Removed:2. Where the undertaking concerned has material exposure to climate change risks, the undertaking shall specify at least two long-term climate change scenarios, including the following:

Removed:(a) a long-term climate change scenario where the global temperature increase remains below two degrees Celsius;

Removed:(b) a long-term climate change scenario where the global temperature increase is significantly higher than two degrees Celsius.

Removed:3. At regular intervals, the assessment referred to in Article 45(1) shall contain an analysis of the impact on the business of the undertaking of the long-term climate change scenarios specified pursuant to paragraph 2 of this Article. Those intervals shall be proportionate to the nature, scale and complexity of the climate change risks inherent in the business of the undertaking, but be no longer than three years.

Removed:4. The long-term climate change scenarios referred to in the paragraph 2 shall be reviewed, at least every three years, and updated where necessary. When reviewing the long-term climate change scenarios, insurance and reinsurance undertakings shall take into account the performance of tools and principles used in previous climate change scenarios, so as to enhance their effectiveness.

Removed:5. By way of derogation from paragraphs 2, 3 and 4, ▌ undertakings that are classified as low-risk profile undertakings shall neither be required to specify climate change scenarios nor to assess their impact on the business of the undertaking.’;

Removed:(26) Article 51 is amended as follows:

Removed:(a) paragraph 1 is replaced by the following:

Removed:‘1. Member States shall, taking into account the information required in paragraph 3 of this Article and the principles set out in Article 35(4), require insurance and reinsurance undertakings to disclose publicly, on an annual basis, a report on their solvency and financial condition.

Removed:The solvency and financial condition report shall consist of two ▌parts. The first part shall consist of information specifically addressed to policyholders and beneficiaries, and the second part shall consist of information addressed to the general public, including to other market participants. The two parts shall be disclosed ▌jointly indicating clearly that the solvency and financial condition report consists of both parts.’;

Removed:(b) paragraph 1a is replaced by the following:

Removed:‘1a. The part of the solvency and financial condition report consisting of information addressed to policyholders and beneficiaries shall contain the following information:

Removed:(a) a description of the business and the performance of the undertaking; and

Removed:(b) a brief description of the capital management and the risk profile of the undertaking, including in relation to sustainability risks and the principal adverse impacts of the insurance or reinsurance undertaking on sustainability factors.’;

Removed:(c) the following paragraphs 1b and 1c are inserted:

Removed:‘1b. The part of the solvency and financial condition report consisting of information addressed to other market participants shall contain the following information, either in full or by way of references to equivalent information, both in nature and scope, disclosed publicly under other legal or regulatory requirements:

Removed:(a) a description of the system of governance;

Removed:(b) a description, separately for assets, technical provisions, and other liabilities, of the bases and methods used for their valuation;

Removed:(c) a description of the capital management and the risk profile, including at least the following:

Removed:(i) the structure and amount of own funds, and their quality;

Removed:(ii) the amounts of the Solvency Capital Requirement and of the Minimum Capital Requirement;

Removed:(iii) for insurance and reinsurance undertakings relevant for the financial stability of the financial systems in the Union, information on risk sensitivity;

Removed:(iv) the option set out in Article 304 used for the calculation of the Solvency Capital Requirement;

Removed:(v) information allowing a proper understanding of the main differences between the underlying assumptions of the standard formula and those of any internal model used by the undertaking for the calculation of its Solvency Capital Requirement;

Removed:(vi) the amount of any non-compliance with the Minimum Capital Requirement or any significant non-compliance with the Solvency Capital Requirement during the reporting period, even if subsequently resolved, with an explanation of its origin and consequences as well as any remedial measures taken.

Removed:(ca) where the undertaking conducts a climate change scenario analysis as described in Article 45a, a description of the latest results of it;

Removed:(cb) a description of the implementation of the plan described in Article 44(2b), including the targets and milestones defined in the undertaking’s plan.

Removed:1c. Where the matching adjustment referred to in Article 77b is applied, the description referred to in paragraph 1b, points (b), (c)(i) and (c)(ii), of this Article shall also describe the matching adjustment and the portfolio of obligations and assigned assets to which the matching adjustment is applied, as well as a quantification of the impact of a change to zero of the matching adjustment on the undertaking’s financial position.

Removed:The description referred to in paragraph 1b, points (b), (c)(i) and (c) (ii), of this Article shall also contain a statement on whether the volatility adjustment referred to in Article 77d is used by the undertaking and, where the volatility adjustment is used, it shall disclose the following information:

Removed:(a) a quantification of the impact of a change to zero of the volatility adjustment on the undertaking's financial position;

Removed:(b) for each relevant currency or, as applicable, country, the volatility adjustment calculated in accordance with Article 77d and the corresponding best estimates for insurance or reinsurance obligations.’;

Removed:(d) paragraph 2 is replaced by the following:

Removed:‘2. The description referred to in paragraph 1b, point (c)(i), shall include an analysis of any significant changes as compared to the previous reporting period and an explanation of any major differences in relation to the value of such elements in financial statements, and a brief description of the capital transferability.

Removed:The disclosure of the Solvency Capital Requirement referred to in paragraph 1b, point (c)(ii), of this Article shall show separately the amount calculated in accordance with Chapter VI, Section 4, Subsections 2 and 3 and any capital add-on imposed in accordance with Article 37 or the impact of the specific parameters the insurance or reinsurance undertaking is required to use in accordance with Article 110, together with concise information on its justification by the supervisory authority concerned.

Removed:The disclosure of the Solvency Capital Requirement shall be accompanied, where applicable, by an indication that its final amount is still subject to supervisory assessment.’;

Removed:(e) the following paragraphs 3 to 8 are added:

Removed:‘3. Captive insurance undertakings shall not be required to disclose the part addressed to policyholders and beneficiaries and they shall only be required to include in the part addressed to other market participants the quantitative data required by the implementing technical standard referred to in Article 56 provided that these undertakings meet the following conditions:

Removed:(a) all insured persons and beneficiaries are legal entities of the group of which the captive insurance undertaking is part or natural persons eligible to be covered under that group’s insurance policies and the business covering natural persons eligible to be covered under the group insurance policies remains below 5% of technical provisions;

Removed:(b) the insurance obligations of the captive insurance undertaking do not consist of any compulsory third-party liability insurance.

Removed:4. Captive reinsurance undertakings shall not be required to disclose the part addressed to policyholders and beneficiaries. Such undertakings shall only be required to include the quantitative data required by the implementing technical standards referred to in Article 56, and the part addressed to other stakeholders provided that these undertakings meet the following conditions:

Removed:(a) all insured persons and beneficiaries are legal entities of the group of which the captive reinsurance undertaking is part or natural persons eligible to be covered under that group’s insurance policies and the business covering natural persons eligible to be covered under the group insurance policies remains below 5% of technical provisions; ;

Removed:(b) the insurance contracts underlying the reinsurance obligations of the captive reinsurance undertaking do not relate to any compulsory third-party liability insurance;

Removed:(c) loans in place with the parent or any group company, including groups cashpools do not exceed 20 % of total assets held by the captive reinsurance undertaking;

Removed:(d) the maximum loss resulting from the gross technical provisions can be deterministically assessed without using stochastic methods.

Removed:5. By way of derogation from paragraph 1, reinsurance undertakings may not disclose the part of the solvency and financial condition report addressed to policyholders and beneficiaries.

Removed:6. By way of derogation from paragraph 1b of this Article, insurance undertakings that are classified as low-risk profile undertakings may disclose only the quantitative data required by the implementing technical standards referred to in Article 56 in the part of the solvency and financial condition report consisting of information addressed to other market participants, provided that they disclose a full report containing all the information required in this Article every three years.

Removed:7. Member States shall ensure that insurance and reinsurance undertakings submit the information referred to in this Article on an annual or less frequent basis within 18 weeks after the undertaking's financial year end.

Removed:8. As part of the report referred to in paragraph 1 of this Article, insurance and reinsurance undertakings shall be required to disclose the impact of using, for the purposes of determining the technical provisions pursuant to Article 77, the risk-free interest rate term structure determined without the application of the transitional for the extrapolation as referred to Article 77e(1), point (aa), instead of the relevant risk-free interest rate term structure.

Removed:However, by way of derogation from the first subparagraph, the disclosure requirement shall not apply to a currency for which one of the following applies:

Removed:(i) the share of future cash flows associated with insurance or reinsurance obligations in that currency relative to all future cash flows associated with insurance or reinsurance obligations does not exceed 5 %;

Removed:(ii) with respect to future cash flows associated with insurance or reinsurance obligations in that currency, the share of future cash-flows pertaining to maturities where the relevant risk-free interest rate term structure is extrapolated relative to all future cash flows associated with insurance or reinsurance obligations does not exceed 10 %.’;

Removed:(27) the following Article 51a is inserted:

Removed:‘Article 51a Audit requirements