Order On Solvency And Operating Plan For Insurance

Original Language Title: Order On Solvency And Operating Plans For Insurance

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Table of Contents

Annouration on solvency and operational plans for insurance undertakings 1)

In accordance with section 18 (2), Paragraph 1, section 143, paragraph 1. 1, no. 1, 2, 3, 5, 6 and 8, section 248 (4). 2, and Section 373 (3). 4, in the law of financial activities, cf. Law Order no. 793 of 20. August 2009 :

Scope of application

§ 1. This notice shall apply to insurance undertakings. Insurance undertakings shall mean life assurance undertakings, transverse pension funds, non-insurers, reinsurance undertakings, reinsurance companies and captive reinsurance undertakings and branches of foreign insurance undertakings with the registered office of registered office ; outside the European Union or outside the territory of which the Community has concluded agreement and which operates directly in the country of direct insurance.

§ 2. Insurance Classes are understood in this notice of the classes listed in Annexes 7 and 8 of the Act of Financial Regulation.

§ 3. Businesses shall draw up capital cover decisions in accordance with this notice.

Claim for the base capital size

§ 4. The insurance undertakings shall at any time be in possession of a basic capital that is at least equivalent to the maximum value of the individual solvency requirements and the capital requirement, cf. Section 11 (1). 5, section 126 of the Act of Financial Company. The capital requirement is the largest of the solvency requirement and the minimum capital requirement for the insurance undertaking, cf. § 127 of the Act of Financial Company.

The needs of the individual solvency

§ 5. The company shall make up its individual solvency requirements with a timescale of 1 year. The individual solvency requirements must be made up as an amount.

Paragraph 2. The Administrative Board shall identify at least once a year to identify and quantify the major risks to which the undertaking is or will be exposed.

Paragraph 3. The Management Board shall approve the general methods used in the calculation of the individual solvency requirements.

Paragraph 4. The Management Board must select the level of security to be used to make up the needs of the individual solvency requirement, the level of security to which the assurance undertaking cannot meet its obligations, in the field of policyholders or beneficiaries, very small.

Paragraph 5. The Administrative Board shall approve the presentation of the individual solvency requirements.

Paragraph 6. The Management Board shall be regularly informed of developments in the essential risks and their incorporation into the needs of the individual solvency.

Paragraph 7. The Management Board must decide on a capital plan to ensure that the basic capital of the company will be sufficient to cover the risks that the company may be expected to be exposed to at the company's continued operation in accordance with its established ; strategy.

Paragraph 8. The Management Board must decide on a capital plan that will contain operational procedures which can be applied in practice if the capital of the capital plan is assumed.

Niner. 9. The company must report quarterly reports the individual solvency requirements for the Financial supervision.

Risk-weighted items for life assurance provision

§ 6. Life assurance provision for the calculation of the solvency requirement, cf. however, section 7 (4). 2 and 3 shall be calculated according to the same method, which shall apply in the annual accounts, cf. sections 15 and 66 in the notice of financial reports for insurance undertakings and transverse pension funds. Life assurance provision for the calculation of the solvency requirement shall be calculated as the largest value of the sum of the guaranteed benefits and bonus potential of future premiums for each contract and the value guaranteed by withdrawals of the contract, cf. however, paragraph 1 2.

Paragraph 2. Where the probability of withdrawal prior to the expiry of the contract is less than 1 and the likelihood of withdrawals used may be justified in the grounds for the withdrawal of periods of contract for insurance purposes to take place in special places ; circumstances may the value guaranteed by withdrawals shall be reduced in accordance with the likelihood of withdrawals.

Paragraph 3. The reinsurance components of life assurance provision shall be calculated in accordance with the same method, which shall apply in the annual accounts, cf. section 8 in the notice of financial reports for insurance undertakings and transverse pension funds.

§ 7. The risk-weighted items for life assurance provision, cf. § 126, paragraph 1. 2, no. 1 and 2, in the area of financial activities, constitute life assurance provision shall be deducted from the reinsurance scheme of life assurance provisions, however, at least 85%. for the life assurance provision.

Paragraph 2. For the insurance class in which complementary insurance is contained, the risk-weighted items for life assurance provision shall be 25 times the amount of the cost of life insurance, after section 10-14.

Paragraph 3. For insurance insurance class V, the risk-weighted items for life assurance provision shall be the life assurance provision.

Paragraph 4. For insurance class III, the risk-weighted items for life assurance provision shall be for unit-contract contracts.

Posts for risk sums

§ 8. The risk-sum without deduction for reinsurance shall be calculated for each insured person as the difference between :

1) the amount which is due to the insured death of the insurance undertaking and the capital of the insurance undertaking in accordance with the technical bases of the insurance undertaking, which are due to the death of the life of the insurance ; and

2) Life insurance claims for the insured.

Paragraph 2. The risk-sum of its own account shall be calculated in the same way as the risk-sum without deduction for reinsurance, cf. paragraph 1, taking away from the insurance services and premiums that the company has given in reinsurance.

Paragraph 3. In the calculation of the total risk sum of the company, only the insured who have a positive risk sum shall be counted as only insured.

§ 9. The risk-weighted items for the risk sum, cf. § 126, paragraph 1. 2, no. 1, 2 and 3, in the case of financial activities, shall constitute the risk-sum of its own account, but not less than 50%. of the risk sum without deduction of reinsurance.

Paragraph 2. For insurance in insurance class I, which are related life insurance for a period of not more than three years, including group life insurance, constitute the risk-weighted items for the risk sum 33 1/3%. of the risk sum of its own account, but not less than 16 2/3%. without deduction of reinsurance.

Paragraph 3. For insurance in insurance class I, which are related to life assurance with a duration of more than three years, but not more than five years, the risk-weighted items for the risk sum 50% shall be the risk weighted. of the risk sum of its own account, but not less than 25%. without deduction of reinsurance.

Gross premiums and gross replacements for non-life insurance

§ 10. The risk-weighted items for gross premiums and risk-weighted items for the gross damages incurred in an insurance undertaking operating non-life insurance accounts for the highest amount of

1) the premium requirement referred to in section 126 (1). 2, no. 5 (a) in the law of financial activities, and

2) the claim requirement, as referred to in section 126 (1). 2, no. 5 (b) of the Act of Financial Enterprise.

§ 11. For insurance class 11, 12 and 13, the premiums that are the basis for the calculation of the premium rate shall be increased by 50%.

Paragraph 2. In the case of the calculation of the premium, the insurance undertaking shall carry out a risk weightings between the sum of the insurance company ' s paid compensation and the sum of paid gross substitutes. The assessment shall be made on the basis of the last three financial years and the risk weighting may not exceed 50%.

§ 12. For insurance class 11, 12 and 13, the gross substitutes that are the basis for the calculation of the claim requirement shall be increased by 50%.

Paragraph 2. If the insurer has taken over an insurance undertaking, the cost of compensation shall be included in the three-year period for this condition for the calculation of the claim.

Paragraph 3. When the insurance undertaking mainly covers credit, storm, hail, or frost credit, the compensation requirement shall be made on the basis of the annual average of gross compensation costs in the last seven years.

Paragraph 4. In the case of the insurance undertaking ' s compensation requirement, a risk weightings shall be carried out with the relationship between the sum of the insurance company ' s paid compensation and the sum of paid gross substitutes. The assessment shall be made on the basis of the last three financial years and the risk weight limit shall not exceed 50%.

General rules concerning solvency

§ 13. The SEC may reduce the risk weighting of solvency requirements carried out in accordance with sections 6, 9, section 11, paragraph 11. 2, and section 12 (3). 4, in the case of reinsurance, when the nature or quality of the current reinsurance cover of the company ' s current reinsurance cover has been substantially altered in relation to the reinsurance cover, which has been available in the years that form the basis for the calculated reduction. The SEC may also reduce the reduction if this is calculated on the basis of contracts that do not involve risk transfers or only an insignificant risk transfer.

§ 14. Regardless of section 10-13 and section 15, the solvency requirement shall be at least the solvency requirement for the replacement claims deducted from reinsurance units for replacement claims at the end of the last financial year and replacement claims shall be deducted from the reinsurance proportion for claims for damages at the beginning of the last financial year. The weight of the weight must be a maximum of 100%.

Lower Minimum CapitalRequirements

§ 15. For mutual insurance undertakings which are not covered by section 126 (4). 6, in the law of financial activities, the minimum capital requirements shall be in section 126 (2). 2, no. 7 and 8, in the law of financial activities, shall be reduced by 25%.

Paragraph 2. For the first time. 1 may be used, at least one of the following conditions shall be satisfied :

1) The insurance company ' s statutes shall provide unlimited possibility for the collection of additional contributions or reductions in benefits, or

2) before the insurance contracts are concluded, the assurance undertaking shall indicate that the company ' s minimum capital requirements are set up by 25%. In the case of insurance contracts which have already been concluded, this information shall be granted at least once a year.

Paragraph 3. In the case of mutual insurance undertakings covered by the minimum reduced minimum capital requirement in section 126 (4), 6, in the Act of financial activities, the insurance undertaking before the insurance contracts shall be concluded clearly and easily informed that the company ' s minimum capital requirements are set up and to draw attention to the possibility of collection of additional contributions or reduction of benefits. In the case of insurance contracts which have already been concluded, this information shall be granted at least once a year.

Basic capital

§ 16. The equity capital shall be set up in accordance with the notice of financial reports for insurance undertakings and transverse pension funds.

Paragraph 2. The equity capital shall be deducted from the level of the rebalance within classes 14 and 15, cf. notification of the rebalance of credit and insurance for the rebalance of credit.

Paragraph 3. Immaterial assets shall be set up in accordance with the notice of financial reports for insurance undertakings and cross-disciplinary pension funds.

Paragraph 4. For direct and indirect ownership assets that represent a risk to a single undertaking or groups of companies that constitute a total risk, cf. § 131, paragraph 1. 2, no. 3, in the case of financial activities, the stock accounting value of the stock concerned shall be made in accordance with the notice of financial reports for insurance undertakings and transverse pension funds.

Paragraph 5. Indirect and indirectly owned capital shares in subsidiaries-financial institutions and associated financial institutions that are to be deducted from the core capital, cf. § 131, paragraph 1. 7, in the law of financial activities, shall be made in accordance with the notice of financial reports for insurance undertakings and transverse pension funds.

Operations and recovery plans

§ 17. In the case of the assessment of the basic capital of the financial year, an assurance undertaking shall be accompanied by an undertaking undertaking the undertaking to which the company intends to : drive. The operating schedule shall cover the company ' s 3 initial financial year and be quarterly split. If the first financial statements are made after a period of less than one year, the operational plan shall extend to this period and the three subsequent financial years.

Paragraph 2. The operating schedule shall include the following :

1) An open balance as it is expected to remain as it is expected to be held in the holding of the foundation of the Foundation.

2) The projected accountancy results in the form of performance balances and balances for the financial years to which the operating plan is based.

3) An inventory of the costs which are deemed to be borne by the management of the insurance undertaking during the period to which the operating plan is to be built.

4) In the case of insurance undertakings operating life assurance undertakings, the technical bases and so on which the operating plan is based.

5) Statement for the proposed reinsurance programmes and creditworthiness (security).

6) Information on the nature of the risks to which the insurance undertaking intends to cover.

7) In the case of insurance undertakings which operate non-life insurance, a statement of the background to the company ' s expectations of premiums on the basis of the compensation costs incurred in respect of their own account.

8) Statement on the investment policy of the insurance undertaking.

9) Calculation of the expected capital requirements, individual solvency requirements and basic capital after the end of each of the quarterspeeches to which the operating plan applies.

10) Information on the equipment available to the insurance undertaking for the undertaking covered by insurance class 18.

11) An assessment of the probability of the non-compliance with the capital requirement and the individual solvency requirement of the insurance undertaking within the first year of the first year.

12) An assessment of the probability of the failure of the insurance undertaking within the first year to lose the entire base chapter.

13) In the case of insurance undertakings operating life assurance undertakings, the Financial supervision may require a longer period of the number of the insurance undertakings referred to in paragraph 1. 11 and 12 assessments have been mentioned.

Paragraph 3. The financial supervision may, by the way, require the information which is deemed necessary to assess whether the results of the operating plan may be considered likely.

Paragraph 4. The financial supervision may determine the reporting form and the setting up of the operating plan.

§ 18. Finds the Financial supervision that it knows the submitted information, cf. Section 17 is not likely to be likely that the insurance undertaking in the period covered by the operational plan and at its end will be in possession of the necessary base capital, the authorization shall not be granted.

§ 19. Upon the issuing of the authorisation, the insurance undertaking shall submit quarterly accounts to the Financial supervision in a form which makes it possible to compare the actual results of the company to the expected results that are contained in the operational plan.

Paragraph 2. Where a deterioration in the financial position of the insurance undertaking in relation to the operating plan is to be carried out, the supervision may be decided on a review of the plan or the preparation of a new operational plan for the following three financial years.

20. The provisions of section 17 to 19 shall apply mutatis muted to the application of an insurance undertaking to extend an existing permit, to the extent to which the company ' s relationship compared with the desired extension of the permit following the estimate of the Finance-synet is to do so ; necessary.

§ 21. Has the Financial Authority required a company to prepare a plan for the restoration of the company ' s financial position, cf. Chapter 16 of the Act of Finance, shall at least include the three following financial years.

Paragraph 2. The plan for re-establishing shall include at least the following :

1) Estimated administration costs.

2) Expected costs and revenues in the case of direct insurance, and the takeover and reinsurance of reinsurance.

3) An expected balance.

4) The expected investment policy.

5) Estison of the size of capital requirement, the individual solvency requirements and the base chapter.

6) Statement for the proposed reinsurance programmes and creditworthiness (security).

Penalty provisions

§ 22. Extreme section 3, section 17, paragraph 1. 1 and 2, section 19 (4). One, and paragraph 21 is punished by fine.

Paragraph 2. Companies can be imposed on companies, etc. (legal persons) punishable by the rules of the penal code 5. Chapter.

Entry into force

-23. The announcement shall enter into force on the 15th. October 2009.

Paragraph 2. At the same time, notice No 1523 of 13. December 2007 on solvency and operational plans for insurance undertakings.

Financial supervision, the 12th. October 2009Ulrik Nutng / Per Plougmand Bren
Official notes

1) The notice contains provisions implementing Council Directive 73/239 of the European Communities (EC Official Journal). L 228, s. 3), (1. non-life insurance Directive), Council Directive 76/580, (EC Official Journal, nr. In 189, s. Directive 13 (13), (Directive on the coordination of laws, regulations and administrative provisions relating to the exercise of direct insurance, other than life insurance) Council Directive 84/641, (EC Official Journal, 1984 # L 339, s. Directive 21), (Tourism Directive), Council Directive 87/343, (EC Official Journal no. In 185, s. The CreditInsurance Directive (Credits Directive), Council Directive 92/49, (EC Official Journal of 1992), L 228, s. 1), (3). non-life insurance Directive), Council Directive 98/78, (EC Official Journal 1998), L 330, s. Directive 1 (1), (The Insurance Group Directive), Directive 2002/83 of the European Parliament and of the Council (EC Official Journal of 2002), Directive 345, s.1), (Lifecycle Directive) and Directive 2005 /68/EC of the European Parliament and of the Council (EU Official Journal) No L 323, s. 1) (reinsurance Directive).