What changed between the draft committee report and the plenary report

Added:(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:Directive 2009/138/EC

Added: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:Article 1 – paragraph 1 – point 46 – point b, Article 111 – paragraph 1 – subparagraph 2 a (new): For the purpose of the first subparagraph, point (c), the methods, assumptions and standard parameters for the interest rate risk sub-module referred to in Article 105(5)(a) shall reflect the risk that low or negative interest rates may fall below their current level. By way of derogation from the previous sentence, the calculation of the interest rate risk sub-module shall not be required to take into account the risk of interest rates falling to levels below a negative floor where a negative floor can be determined such that the likelihood of interest rates across relevant currencies and across maturities not being at all times above the negative floor is sufficiently small.

Added: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:Proposal for a new sub-paragraph to provide guidance on interest rate risk.

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

Removed:Directive 2009/138/EC

Added:(b) the level of risk concentrations;

Removed:Article 1 – paragraph 1 – point 46 a (new), Article 111 – paragraph 3: (46a) Article 111(3) is amended as follows: / ‘3. By 31 December 2025, and every five years thereafter, EIOPA shall make an assessment of the appropriateness of the methods, assumptions, and standard parameters used when calculating the Solvency Capital Requirement standard formula. It shall in particular take into account the performance of any asset class and financial instruments, the behaviour of investors in those assets and financial instruments as well as developments in international standard setting in financial services. On the basis of EIOPA’s assessment, the Commission shall present, where appropriate, proposals for the amendment of this Directive, or of delegated or implementing acts adopted pursuant hereto.’

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

Removed:All calibrations should be reviewed at regular intervals. This amendment updates the existing article.

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

Removed:Directive 2009/138/EC

Added: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:Article 1 – paragraph 1 – point 47, Article 112 – paragraph 7: deleted / (deleted)

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

Removed:This provision would be extremely burdensome.

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

Removed:Directive 2009/138/EC

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

Removed:Article 1 – paragraph 1 – point 49 – point b, Article 132 – paragraph 5: 5. Insurance and reinsurance undertakings shall take account of possible macroeconomic and financial markets’ developments when they decide on their investment strategy.

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

Removed:Directive 2009/138/EC

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

Removed:Article 1 – paragraph 1 – point 49 – point b, Article 132 – paragraph 6: deleted

Added:(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:Most insurance undertakings are too small to be a source of systemic risk.

Added: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:Directive 2009/138/EC

Added:(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:Article 1 – paragraph 1 – point 49 – point b, Article 132 – paragraph 7: 7. For the purpose of paragraphs 5 and 6 of this Article, macroeconomic and financial market developments shall have the same meaning as in Article 45.;

Added:(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:Directive 2009/138/EC

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

Removed:Article 1 – paragraph 1 – point 52, Article 139 – paragraph 3: 3. The supervisory authority of the home Member State may also restrict or prohibit the free disposal of assets of the insurance or reinsurance undertaking. It shall inform the supervisory authorities of the host Member States accordingly. At the request of the supervisory authority of the home Member State, those authorities shall take the same measures. The supervisory authority of the home Member State shall designate the assets to be covered by such measures.

Added:‘Article 35b Reporting deadlines

Removed:There should be no mix-up between Solvency II and IRRD.

Added: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:Directive 2009/138/EC

Added: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:Article 1 – paragraph 1 – point 52, Article 139 – paragraph 4: deleted

Added: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:EIOPA always may develop guidelines pursuant to the EIOPA Regulation.

Added: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:Directive 2009/138/EC

Added: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:Article 1 – paragraph 1 – point 53, Article 144 – paragraph 4: 4. In the event of the withdrawal of authorisation, Member States shall ensure that the insurance or reinsurance undertaking continues to be subject to the general rules and objectives of the supervision set out in Title I, Chapter III, until any winding-up proceedings are opened.;

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

Removed:Editorial corrections.

Added:‘(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:Directive 2009/138/EC

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

Removed:Article 1 – paragraph 1 – point 54, CHAPTER VIIA – title: deleted / (deleted)

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

Removed:Most of the provisions in this chapter do not concern macroprudential tools.

Added:‘(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:Directive 2009/138/EC

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

Removed:Article 1 – paragraph 1 – point 54, Article 144a – paragraph 1: 1. Member States shall ensure that the liquidity risk management of insurance and reinsurance undertakings referred to in Article 44(2), point (d), ensure they maintain adequate liquidity to settle their financial obligation towards policyholders and other counterparties when they fall due.