European Union (Insurance and Reinsurance) Regulations 2015

• Jurisdiction: Ireland

CONTENTS

Part 1

PRELIMINARY

1. Citation and commencement

2. Object of Regulations

3. Interpretation

4. Exclusion of small undertakings

5. Exclusion of mutual undertakings

6. Exclusions: insurance forming part of social security system

7. Exclusions: non-life operations

8. Exclusions: assistance activity

9. Exclusions: life operations and organisations

10. Exclusions: reinsurance

11. Exclusion of insurance and reinsurance undertakings closing their activity

Part 2

AUTHORISATION

12. Prohibition against carrying on insurance etc. without authorisation

13. Deemed authorisation for existing undertakings

14. Authorisation

15. Scope of authorisation

16. Ancillary risks

17. Conditions for authorisation

18. Close links

19. Policy conditions and scales of premiums

20. Economic requirements of the market

21. Scheme of operations

22. Shareholders and members with qualifying holdings

23. Prior consultation with authorities of other Member States

24. Decision on application for authorisation

25. Notification of authorisation to EIOPA

26. Power to impose conditions

Part 3

SUPERVISION

27. Main objective of supervision

28. Financial stability and pro-cyclicality

29. General principles of supervision

30. Scope of supervision

31. Transparency and accountability

32. Prohibition of refusal of reinsurance and retrocession contracts

33. Supervision of branches established in another Member State

34. Information to be provided for supervisory purposes

35. Annual and quarterly information etc.: transitional deadlines

36. Directors’ accuracy certificates

37. Auditor’s report

38. Supervisory review process

39. Capital add-on

40. Supervision of outsourced functions and activities

41. Transfer of insurance portfolio

42. Transfer of reinsurance portfolio

Part 4

CONDITIONS GOVERNING BUSINESS

Chapter 1

Responsibilities of board of directors

43. Responsibility of board of directors

Chapter 2

System of governance

44. General governance requirements

45. Fit and proper requirements

46. Risk management

47. Own risk and solvency assessment

48. Internal control

49. Internal audit

50. Actuarial function

51. Outsourcing

Chapter 3

Public disclosure

52. Report on solvency and financial condition: contents

53. Report on solvency and financial condition: transitional deadlines

54. Information for EIOPA

55. Report on solvency and financial condition: applicable principles

56. Report on solvency and financial condition: updates and additional voluntary information

57. Report on solvency and financial condition: policy and approval

58. Annual reports

Chapter 4

Qualifying holdings

59. Interpretation

60. Acquisitions

61. Disposals

62. Insurance and reinsurance undertakings to provide information on certain acquisitions and disposals

63. Period for assessment of proposed acquisition

64. Assessment of proposed acquisitions

65. Bank to co-operate with other authorities

66. Bank may fix period for completion of acquisition

67. Notice of Bank’s decision

68. Bank may oppose certain acquisitions

69. Decision to oppose proposed acquisition to be appealable

70. Circumstances in which proposed acquisition may not be completed

71. Effect of Companies Act 2014

72. Insurance and reinsurance undertakings to provide information about shareholdings etc

73. Power of Court to make certain orders

74. Determination of voting rights for certain purposes

75. Notifications submitted before 1 January 2016

Part 5

EXCHANGE OF INFORMATION AND PROMOTION OF SUPERVISORY CONVERGENCE

76. Co-operation with EIOPA

77. Exchange of information with other authorities

Part 6

DUTIES OF AUDITORS

78. Duties of auditors

Part 7

PURSUIT OF LIFE AND NON-LIFE ACTIVITY

79. Pursuit of life and non-life insurance activity

80. Separation of life and non-life insurance management

81. Linked life insurance and non-life insurance undertakings

Part 8

VALUATION OF ASSETS AND LIABILITIES, TECHNICAL PROVISIONS, OWN FUNDS, SOLVENCY CAPITAL REQUIREMENT, MINIMUM CAPITAL REQUIREMENT AND INVESTMENT RULES

Chapter 1

Valuation of assets and liabilities

82. Valuation of assets and liabilities

Chapter 2

Technical provisions

83. General provisions

84. Calculation of technical provisions

85. Extrapolation of relevant risk-free interest rate term structure

86. Matching adjustment to relevant risk-free interest rate term structure

87. Calculation of matching adjustment

88. Volatility adjustment to relevant risk-free interest rate term structure

89. Technical information produced by EIOPA

90. Review of long-term guarantee measures and measures on equity risk

91. Other elements to be taken into account in calculation of technical provisions

92. Valuation of financial guarantees and contractual options included in insurance and reinsurance contracts

93. Segmentation

94. Recoverables from reinsurance contracts and special purpose vehicles

95. Data quality and application of approximations, including case-by-case approaches, for technical provisions

96. Comparison against experience

97. Appropriateness of level of technical provisions

98. Increase of technical provisions

99. Transitional measure on risk-free interest rates

100. Transitional deduction

101. Phasing-in plan on transitional measures

Chapter 3

Own funds

Determination of own funds

102. Own funds

103. Basic own funds

104. Ancillary own funds

105. Supervisory approval of ancillary own funds

106. Surplus funds

Classification of own funds

107. Characteristics and features used to classify own funds into tiers

108. Main criteria for classification into tiers

109. Transitional provision for own funds

110. Classification of own funds into tiers

111. Classification of specific insurance own-fund items

Eligibility of own funds

112. Eligibility and limits applicable to Tiers 1, 2 and 3

Chapter 4

Solvency Capital Requirement

General provisions

113. General

114. Calculation of Solvency Capital Requirement

115. Frequency of calculation etc.

Standard formula

116. Structure of standard formula

117. Design of Basic Solvency Capital Requirement

118. Transitional provisions on standard parameters

119. Calculation of Basic Solvency Capital Requirement

120. Calculation of equity risk sub-module: symmetric adjustment mechanism

121. Capital requirement for operational risk

122. Adjustment for loss-absorbing capacity of technical provisions and deferred taxes

123. Simplifications in standard formula

124. Significant deviations from assumptions underlying standard formula calculation

Internal model

125. General provisions for approval of full and partial internal models

126. Specific provisions for approval of partial internal models

127. Policy for changing full and partial internal models

128. Responsibilities of board of directors

129. Reversion to standard formula

130. Non-compliance

131. Significant deviations from assumptions underlying standard formula calculation

132. Use test

133. Statistical quality standards

134. Calibration standards

135. Profit and loss attribution

136. Validation standards

137. Documentation standards

138. External models and data

Chapter 5

Minimum Capital Requirement

139. General provisions

140. Calculation of Minimum Capital Requirement

Part 9

INVESTMENTS

141. Prudent person principle

142. Limits on freedom of investment

143. Investment in tradable securities or other financial instruments based on repackaged loans

Part 10

UNDERTAKINGS IN DIFFICULTY OR IN IRREGULAR SITUATION

144. Identification and notification of deteriorating financial conditions by undertaking

145. Non-compliance with technical provisions

146. Non-compliance with Solvency Capital Requirement

147. Derogation from non-compliance with Solvency Capital Requirement

148. Non-compliance with Minimum Capital Requirement

149. Transitional arrangements regarding compliance with Minimum Capital Requirement

150. Prohibition of free disposal of assets located within the State

151. Supervisory powers in deteriorating financial conditions

152. Recovery plan and finance scheme

153. Withdrawal of authorisation

Part 11

RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES

Chapter 1

Establishment by insurance undertakings

154. Branch establishment in another Member State

155. Communication of information to other Member State

156. Change of particulars where the State is home Member State

157. Branch establishment in the State

158. Change of particulars where the State is host Member State

159. Rights acquired by existing branches

Chapter 2

Freedom of insurance undertakings to provide services

General

160. Prior notification of intention to do business in another Member State

161. Changes in nature of risks or commitments

162. Carrying on business in the State

163. Rights acquired by existing insurance undertakings

Third party motor vehicle liability

164. Compulsory insurance on third party motor vehicle liability

Chapter 3

Competencies of supervisory authorities of host Member State

Insurance

165. Language

166. Prior notification and prior approval

167. Non-compliant insurance undertakings authorised in another Member State

168. Non-compliant insurance undertakings authorised by Bank

169. Advertising

170. Taxes on premiums

Reinsurance

171. Non-compliant reinsurance undertakings authorised in another Member State

172. Non-compliance by reinsurance undertaking authorised by Bank

Chapter 4

Statistical information

173. Statistical information on cross-border activities

Chapter 5

Winding-up proceedings

174. Winding-up of insurance undertakings

175. Winding-up of reinsurance undertakings

Part 12

BRANCHES OF UNDERTAKINGS ESTABLISHED OUTSIDE EUROPEAN...