Schwankungsrückstellungs Regulation 2016 - Vu Swrv 2016

Original Language Title: Schwankungsrückstellungs-Verordnung 2016 – VU-SWRV 2016

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.

315. Regulation of the Financial Markets Authority (FMA) on the formation of a fluctuation reserve in the insurance and accident insurance of insurance undertakings (Fluctuation Reserve Regulation 2016-VU-SWRV 2016)

On the basis of § 139 of the Insurance Supervision Act 2016-VAG 2016, BGBl. I. No. 34/2015, as last amended by the Federal Act BGBl. I n ° 112/2015, is ordered with the approval of the Federal Minister of Finance:

Section 1

General provisions

Insurance branch and business unit

§ 1. (1) The insurance sector in the meaning of this Regulation shall apply:

1.

accident insurance;

2.

Liability insurance:

a)

general civil liability insurance;

b)

Nuclear liability insurance;

3.

Motor vehicle civil liability insurance;

4.

Motor vehicle insurance;

5.

Motor vehicle passenger accident insurance;

6.

Aviation insurance:

a)

Flight liability insurance;

b)

Flight Kaskoversicherung;

c)

Flight passenger accident insurance;

7.

legal protection insurance;

8.

Fire insurance:

a)

Fire-industrial safety;

b)

Fire service interruption insurance;

c)

other fire insurance;

9.

Break-in theft insurance;

10.

Line-water damage insurance;

11.

Glass breakage insurance;

12.

Storm damage insurance;

13.

Household insurance;

14.

Hagelversicherung;

15.

Animal insurance;

16.

Machine insurance:

a)

Machinery-Business interruption insurance;

b)

other machinery insurance;

17.

computer insurance;

18.

Transport insurance:

a)

Travel luggage insurance;

b)

other transport insurance;

19.

credit insurance;

20.

Construction-life insurance;

21.

Other insurance.

(2) As a business unit within the meaning of this Regulation:

1.

Occupational disability insurance;

2.

Occupational accident insurance;

3.

Motor vehicle insurance;

4.

other road safety insurance;

5.

Maritime, aviation and transport insurance;

6.

Fire and other property insurance:

a)

Fire insurance;

b)

Hagelversicherung;

c)

other facts;

7.

general civil liability insurance;

8.

Credit and security insurance:

a)

credit insurance;

b)

deposit insurance;

9.

legal protection insurance;

10.

Assistance;

11.

various financial losses;

12.

Other insurance.

(3) An insurance branch of the first level is an insurance branch referred to in paragraph 1 with figures. A business unit of the first level is a business unit with figures in section 2. An insurance branch of the second level is an insurance branch referred to in paragraph 1 with lower case. A division of the second level is a business unit with lower case letters in paragraph 2.

(4) A fluctuation provision shall be made for the insurance branches of the first level referred to in paragraph 1, or for the business units referred to in paragraph 2, in accordance with the provisions of the third section.

(5) Instead of the first-level insurance branches referred to in paragraph 1, the fluctuation reserve may also be constituted for the insurance branches of the second level referred to in paragraph 1. With the formation of a fluctuation reserve for the business units referred to in paragraph 2, this is mandatory for the business unit 6 ("fire and other insurance") and for the business area 8 ("credit and security insurance") shall be made separately on the second level. A formation of the fluctuation reserve at the level of the business unit of the first level is excluded for these two business areas.

(6) The transition from the first level to the second level shall only be permitted in the financial year in which the conditions set out in § 9 are met for the first time for at least one second-level insurance branch. If, for the first time, the conditions for more than one branch of the second level are met simultaneously, an existing fluctuation reserve shall be divided up in the ratio of the nominal amounts.

(7) If, within the second level, no more than the condition of § 9 Z 1 is fulfilled for any of the classes of insurance pursuant to paragraph 1, the first level of insurance may be transferred to the corresponding insurance branch.

(8) The principle of continuity must be applied to the exercise of the right to vote in accordance with § 1 (4). A change from the classes referred to in paragraph 1 to the business units referred to in paragraph 2, or a change from the business units referred to in paragraph 2 to the classes referred to in paragraph 1, shall be subject to special conditions only if there is a special Circumstances and in compliance with the objective set out in § 222 (2), first sentence, UGB. The companies shall indicate the change in the annual financial statements to be extended by the annex, and shall explain their influence on the assets, financial position and performance of the enterprise. An existing fluctuation reserve shall be divided into the newly elected insurance branches and business units in the ratio of the nominal amounts. The data of the observation period in accordance with § 2 shall be adapted to the newly elected insurance branches and business units.

Observation period

§ 2. (1) The period of observation shall be the 15, in the case of hail insurance in accordance with § 1 para. 1 Z 14, para. 2 Z 6 lit. b and in the credit insurance according to § 1 paragraph 1 Z 19, para. 2 Z 8 lit. a each of the 30 financial years immediately preceding the financial year.

Where an insurance undertaking does not yet have an insurance sector or business unit during the entire observation period referred to in paragraph 1, but at least 10 financial years prior to the financial year, all Business years as observation period.

Damage record, average damage record, deviation

§ 3. (1) The rate of damage of a financial year shall be the ratio of the limited insurance benefits in the amount of own retention, including the expenses for the non-performanted premium restitution in the deductible to the deducted premiums in the Own content in percent.

(2) The average rate of damage shall be the arithmetic mean of the estimates of the observation period referred to in § 2.

(3) By way of derogation, the difference between the average rate of damage (§ 3 para. 2) of the observation period in accordance with § 2 and the rate of damage of the respective financial year in accordance with paragraph 1 shall be taken to mean.

(4) The defined insurance benefits correspond to the expenses for insurance cases, with the exception of the expenses for claims settlement and prevention.

Cost Rate, Average Cost Rate

§ 4. (1) The cost rate for a financial year shall be the ratio of the expenses incurred for the insurance business, including technical expenses and expenses for the regulation and prevention of the insurance cases, less technical-technical income as a percentage of the insured premiums. Expenses and income from reinsurance contributions, which are included in the expenses and income related to the determination of the cost set, are not to be taken into account (total accounts).

(2) A common uniform cost rate shall be determined for classes of insurance in accordance with § 1 (1) and business units in accordance with § 1 (2).

(3) If a set of costs is determined on the basis of an in-house cost statement for a single insurance branch in accordance with § 1 (1) or for a single business unit in accordance with § 1 (2), this cost statement may be used for the individual insurance sector. Insurance branch or for this single business unit. The allocation of the expenses is to be carried out in accordance with the causation procedure and a change in the division procedure applied is permissible only if special circumstances are present.

(4) The average cost rate shall be the arithmetic mean of the cost of the last three financial years of the observation period in accordance with § 2.

Border Damage

§ 5. The marginal rate of damage is the difference between 100% and the average cost rate.

variance, standard deviation

§ 6. The variance of the estimates of the observation period referred to in § 2 is the sum of the squared deviations (§ 3 para. 3) of the observation period by the number of financial years of the observation period, which is reduced by one. The standard deviation is the square root of the variance.

Lower charged amount, excess amount

§ 7. (1) If the rate of damages for the financial year is less than the average rate of damages in accordance with § 3 (2), the amount of the sub-charged shall be the product of the defined own-account premiums of the financial year and the difference between the to determine the average rate of damage and the rate of damage of the financial year.

(2) If the rate of damages for the financial year is above the average rate of damages in accordance with § 3 (2), a surplus amount shall be the product of the defined own-income premiums of the financial year and the difference between the To determine the damage rate of the financial year and the average rate of damage. If the average rate of damage falls below the limit set in accordance with § 5, the amount of the surplus shall be reduced by 60% of the difference between the limit of the limit and the amount of the difference multiplied by the amount of the paid-up premiums of the financial year; and the average amount of damage, but not more than the amount of the surplus.

Section 2

Procedure in the indirect business

§ 8. (1) For the purpose of forming a fluctuation reserve, the direct and indirect business of an insurance branch or of a business unit may be combined. Where a separate calculation of the fluctuation reserve is carried out, it is permissible for the indirect business to summarize the classes of insurance in accordance with paragraphs 1, Z 3 to 5, Z 8 to 13, and Z 16 and Z 17.

(2) The calculation of the cost rates in accordance with § 4 may be carried out separately for the direct and indirect business, in the case of separate calculation.

(3) A change from a procedure chosen in accordance with paragraph 1 or paragraph 2 shall be admissible at the date of entry into force of this Regulation and thereafter only in the case of special circumstances and shall be sufficient to comply with the principle of continuity. Section 1 (8) of the third sentence shall apply.

Section 3

Formation and dissolution of a fluctuation reserve

Conditions for the formation of a fluctuation reserve

§ 9. For each class of insurance referred to in Article 1 (1) or in each of the areas of business referred to in Article 1 (2), the provision of a fluctuation reserve in accordance with this Regulation shall be established if:

1.

the cut-off premiums on average over the last three financial years, including the financial year, exceed EUR 150,000;

2.

the standard deviation of the claims for the observation period referred to in § 2 of the average rate of damages in accordance with § 3 (2) shall be at least five percentage points, and

3.

the sum of the set of damages and the rate of costs during the observation period has exceeded 100% at least once in accordance with § 2.

Set amount

§ 10. (1) The nominal amount of the fluctuation reserve is in the hail insurance in accordance with § 1 para. 1 Z 14 and § 1 para. 2 Z 6 lit. b and in the credit insurance according to § 1 paragraph 1 Z 19 and § 1 para. 2 Z 8 lit. a das Sechsfold and in all other classes of insurance in accordance with § 1 (1) and divisions according to § 1 (2), four and a half times the standard deviation of the period of observation of the observation period according to § 2 of the average rate of damage according to § 3 (2) multiplied by the limited own-payment premiums of the financial year.

(2) The average rate of damage (§ 3 para. 2) falls below the limit of the limit (§ 5). In all classes of insurance according to § 1 (1) and all business units according to § 1 (2), the three-fold difference between the limit value and the threshold value is three times the difference between the limit and the threshold. -to withdraw from the amount determined in accordance with paragraph 1, multiplied by the deducted own resources of the financial year. Of this, the insurance sector "Hagelversicherung" according to § 1 para. 1 Z 14 and the business division "Hagelversicherung" are in accordance with § 1 paragraph 2 Z 6 lit. b excluded.

(3) The fluctuation reserve may not exceed the nominal amount. If the desired amount is exceeded by means of a supply according to § 11 or § 12, the feed is to be shortened accordingly. If, at the end of the financial year, the nominal amount is less than the fluctuation reserve at the end of the previous financial year, the difference in the financial year shall be resolved at any rate. The resolution shall apply to § 14 (1).

Non-life supply

§ 11. In each financial year, the fluctuation reserve shall initially be fed to 1.5% of its respective target amount, irrespective of the course of the damage.

Damage-dependent feed

§ 12. If the damage rate for the financial year is less than the average rate of damages in accordance with § 3 (2), the fluctuation provision shall be increased by the amount of the lower charged amount in accordance with section 7 (1).

Damage-dependent removal

§ 13. If the damage rate for the financial year is above the average rate of damages in accordance with § 3 para. 2, the fluctuation provision shall be reduced by the excess amount in accordance with Section 7 (2).

Resolution of the fluctuation reserve

§ 14. (1) If all the conditions for the formation of a fluctuation reserve in accordance with § 9 are not fulfilled, the fluctuation reserve shall be dissoled. The resolution can be distributed evenly over the financial year and the following four financial years.

(2) The fluctuation provision shall not be resolved if the conditions in accordance with § 9 are not fulfilled in the financial year, but it is determined that they will be fulfilled again in the following financial year. In this case, the fluctuation reserve shall be returned from the end of the financial year preceding the financial year to the balance sheet at the end of the financial year in unchanged amount.

Section 4

Re-admission of insurance branches and business units

§ 15. (1) If the operation of an insurance branch pursuant to section 1 (1) or of a business unit is newly recorded in accordance with Article 1 (2), the third section of this Regulation shall be applied for the first time as soon as a minimum of three years has been established. Observation period is available. The own observation period begins at the earliest with the financial year in which the defined premiums of the insurance branch or business unit in question exceed EUR 150,000 for the first time. The period of observation shall be supplemented by those estimates for a ten-year period of observation, which shall be based on the data relating to the operation of the insurance branch or business area concerned. Insurance companies according to § 5 Z 1 VAG 2016 with registered office in Germany; these data are made available to the insurance company by the FMA.

(2) If, in the cases referred to in paragraph 1, a set of costs of the enterprise cannot be determined for previous financial years of the observation period, the average cost rate of the own observation period shall be considered as the cost rate of the previous year. Financial years.

Section 5

Entry into force and transitional provisions

entry into force

§ 16. This Regulation shall enter into force 1. January 2016 in force and is to be applied for the first time to financial years beginning after 31 December 2015.

Transitional provision

§ 17. (1) In an insurance branch in accordance with Section 1 (1) or in a business unit as defined in Article 1 (2), the end of the financial year preceding the first application of this Regulation shall be subject to a fluctuation reserve and would be subject to the following conditions: § 14 (1) does not apply, however, the conditions for the formation of a fluctuation reserve (§ 9) are fulfilled in the financial year of the first application of this Regulation, but the conditions are not fulfilled in accordance with § 9. ,

(2) If the nominal amount determined pursuant to § 10 of this Regulation is below the amount of the specified amount for a given class of insurance pursuant to Section 1 (1) or Section 1 (2), to the end of the first application of this Regulation. In the event of a fluctuation reserve formed in the financial year, Section 14 (1) shall be applied for the resolution of the difference.

(3) In the financial year of the initial formation of a fluctuation reserve and in the following six financial years, it is permissible to reduce the amounts of the supply referred to in paragraph 4 resulting from the third section.

(4) In application of paragraph 3, the amounts of the supply amounts for individual classes of insurance pursuant to Article 1 (1) or the business units referred to in Article 1 (2) shall be reduced in proportion to the ratio of the sum of all the amounts of the supply minus the sum of all invoiced withdrawal amounts in so far as they exceed the fluctuation reserve of the insurance branch, as provided for at the end of the previous financial year, in accordance with § 1 (1) or the business area pursuant to § 1 (2), to the sum of all supply amounts. In the case of the abbreviation procedure, it shall be possible to proceed separately for direct and indirect business if the fluctuation reserve is determined separately.

Ettl Kumpfmüller