What changed between the draft committee report and the plenary report

Added:(v) business underwritten in Member States other than the home Member State where the undertaking received its authorisation in accordance with Article 14 is not a significant cross-border activity;

Removed:Article 1 – paragraph 1 – point 24 – point b, Article 45 – paragraph 1a – subparagraph 1 – introductory part: For the purpose of paragraph 1, points (d) and (e), macroeconomic and financial markets’ developments shall include, at least:

Added:(vi) the sum of the annual gross written premium in classes 4 to 7, 14 and 15 of Section A of Annex I is not higher than 30 % of total annual gross written premiums of non-life business;

Removed:Editorial change: the term "developments" already implies that his might refer to changes.

Added:(vii) the market risk module referred to in Article 105(5) is not higher than 20 % of total investments;

Removed:Directive 2009/138/EC

Added:(viii) the reinsurance business accepted by the undertaking does not exceed 50 % of its annual total gross written premium income.

Removed:Article 1 – paragraph 1 – point 24 – point b, Article 45 – paragraph 1a – subparagraph 1 – point a: (a) interest rates and spreads;

Added:(viiia) the Solvency Capital Requirement is complied with and a capital add-on in accordance with Article 37 has not been set.

Removed:Directive 2009/138/EC

Added:▌

Removed:Article 1 – paragraph 1 – point 24 – point b, Article 45 – paragraph 1a – subparagraph 1 – point b: (b) financial market indices;

Added:▌

Removed:Directive 2009/138/EC

Added:1a. Notwithstanding paragraph 1, all captive insurance undertakings and captive reinsurance undertakings shall be classified as low-risk profile undertakings.

Removed:Article 1 – paragraph 1 – point 24 – point b, Article 45 – paragraph 1a – subparagraph 1 – point e: deleted

Added:2. For insurance ▌ undertakings which have obtained authorisation in accordance with Article 14 for less than two years, compliance with the criteria set out in paragraph 1 of this Article shall be assessed only with respect to the last financial year prior to the classification.

Removed:Those are neither macroeconomic nor financial markets developments and thus do not fit under the headline.

Added:3. The following insurance and reinsurance undertakings shall never be classified as low-risk profile undertakings:

Removed:Directive 2009/138/EC

Added:▌

Removed:Article 1 – paragraph 1 – point 24 – point b, Article 45 – paragraph 1a – subparagraph 2: deleted

Added:(b) undertakings which are parent undertakings of an insurance group within the meaning of Article 212, to which group supervision applies in accordance with Article 213(2), point (a) or (b), unless the group is classified as a low-risk profile group.

Removed:Directive 2009/138/EC

Added:1. Member States shall ensure that ▌undertakings complying with the conditions set out in Article 29a▌ may notify the supervisory authority of such compliance with a view to be classified as low-risk profile undertakings.

Removed:Article 1 – paragraph 1 – point 24 – point b, Article 45 – paragraph 1b: 1b. Member States shall ensure that the analysis required under paragraph 1, point (d), is commensurate to the nature of risks as well as the scale and complexity of the activities of undertakings. Member States shall ensure that insurance undertakings that are classified as low-risk profile undertakings, pursuant to Article 29c, and undertakings which have obtained prior supervisory approval, pursuant to Article 29d, are not obliged to conduct the analysis referred to in paragraph 1, point (e).;

Added:2. The notification referred to in paragraph 1 of this Article shall be submitted by the ▌undertaking to the supervisory authority of the Member State that granted the prior authorisation referred to in Article 14. That notification shall include all of the following:

Removed:Directive 2009/138/EC

Added:(a) evidence of the compliance with all criteria set out in Article 29a applicable to that undertaking;

Removed:Article 1 – paragraph 1 – point 24 – point d, Article 45 – paragraph 5 – subparagraph 2 – introductory part: By way of derogation from the first subparagraph of this paragraph, insurance undertakings may perform the assessment referred to in paragraph 1 at least every three years and without any delay following any significant change in their risk profile, unless the supervisory authority concludes based on the specific circumstances of the undertaking that a more frequent assessment is needed, where either of the following conditions is met:

Added:(b) a declaration that the undertaking does not plan any strategic change that would lead to non-compliance with the criteria set out in Article 29a within the next three years;

Removed:Directive 2009/138/EC

Added:(c) an early identification of the proportionality measures the undertaking expects to implement, in particular if the best estimate simplification is intended to be used and whether the undertaking plans to use the simplified method to calculate technical provisions laid down in Article 77(7).

Removed:Article 1 – paragraph 1 – point 24 – point d, Article 45 – paragraph 5 – subparagraph 2 – point b – point ii: (ii) 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 third-party liability insurance.

Added:3. The supervisory authority may oppose the classification as low-risk profile undertaking within one month of receipt of the notification referred to in paragraph 1 of this Article on grounds related exclusively to the non-compliance with the conditions foreseen under Article 29a or where the undertaking represents more than 5% of the life or, where applicable, non-life insurance market of the home Member State of the undertaking. A decision of the supervisory authority to oppose to the classification shall be done in writing and state the reasons of the supervisory authority’s disagreement. Absent such decision, the insurance undertaking shall be classified as low-risk profile undertaking as of the end of the one month opposition period or an earlier date where the supervisory authority has issued a decision earlier confirming compliance with criteria.

Removed:Directive 2009/138/EC

Added:4. With respect to requests received by supervisory authorities within the first six months of [OP please insert date = entry into application of this Directive], the period referred to in paragraph 2 shall be extended to two months.

Removed:Article 1 – paragraph 1 – point 24 – point e, Article 45– paragraph 8: deleted / (deleted) / (deleted) / (deleted)

Added:5. The ▌undertakings shall be classified as low-risk profile undertaking for as long as such classification does not cease in accordance with this paragraph.

Removed:Directive 2009/138/EC

Added:Where a low-risk profile undertaking no longer complies with any of the criteria set out in Article 29a(1) it shall inform the supervisory authority without delay. Where such non-compliance continuously persists over two consecutive years, the undertaking shall notify the supervisory authority of this situation, and will cease to be classified as low-risk profile undertaking as from the third financial year.

Removed:Article 1 – paragraph 1 – point 25, Article 45a: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added:When a low-risk profile undertaking no longer complies with any of the conditions set out in Article 29a(3), that undertaking shall notify the supervisory authority without delay and will cease to be classified as low-risk profile undertaking as from the following financial year.

Removed:Directive 2009/138/EC

Added:Article 29c Use of proportionality measures by undertakings classified as low-risk profile

Removed:Article 1 – paragraph 1 – point 26 – point a, Article 51 – paragraph 1: deleted / (deleted) / (deleted)

Added:1. Member States shall ensure that, without prejudice to specific requirements set out in each proportionality measure, insurance and reinsurance undertakings classified as low-risk profile undertakings may make use of all the proportionality measures provided for in this Directive, in particular those provided for in Article 35(5a), Article 41, Article 45(1b), Article 45(5), ▌ Article 51(6), Article 51a(1), Article 77(7) and Article144a(4), and any proportionality measure provided for in the delegated acts adopted pursuant to this Directive.

Removed:There is little benefit of splitting the annual report into two parts.

Added:2. By way of derogation from paragraph 1, where the supervisory authority has serious concerns in relation to the risk profile of a low-risk profile undertaking, the supervisory authority may, in exceptional circumstances, request the undertaking concerned to refrain from using one or several proportionality measures listed in paragraph 1 provided this is duly justified in writing on consideration of the impact on the organisation of the undertaking and the specificities or change of its risk profile.

Removed:Directive 2009/138/EC

Added:Article 29d Use of proportionality measures by undertakings not classified as low-risk profile undertakings

Removed:Article 1 – paragraph 1 – point 26 – point b, Article 51 – paragraph 1a: deleted / (deleted) / (deleted) / (deleted)

Added:1. Member States shall ensure that insurance and reinsurance undertakings that are not classified as low-risk profile undertakings may use any proportionality measure provided for in this Directive, in particular those provided for in Article 35(5a), Article 41, Article 45(1b), Article 45(5), Article 77(7) and Article 144a(4) and any proportionality measure provided for in the delegated acts adopted pursuant to this Directive, subject to prior approval from the supervisory authority.

Removed:There is little benefit of splitting the annual report into two parts.

Added:The insurance or reinsurance undertaking shall submit a request in writing for approval to the supervisory authority. That request shall include all of the following:

Removed:Directive 2009/138/EC

Added:(a) the list of the proportionality measures intended to be used and the reasons why their use is justified in relation to the nature, scale and complexity of the risks inherent in the business of the undertaking;

Removed:Article 1 – paragraph 1 – point 26 – point c, Article 51 – paragraph 1b: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added:(b) any other material information regarding the risk profile of the undertaking;

Removed:There is little benefit of splitting the annual report into two parts.