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Notice On Business Plans, Recovery Plans, Financial Plans And Individual Solvency Requirements For Insurance Companies

Original Language Title: Bekendtgørelse om driftsplaner, planer for genoprettelse, finansieringsplaner og individuelt solvensbehov for forsikringsselskaber

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Table of Contents
Chapter 1 Scope of application
Chapter 2 Operational Plans
Chapter 3 Plans for recovery and financing plans
Chapter 4 Solvency of the Group 2-insurance undertakings
Chapter 5 Penalty provisions
Chapter 6 Entry into force

Publication of operational plans, plans for recovery, financing plans and individual solvency requirements for insurance undertakings 1)

In accordance with section 18 (2), Paragraph 1, section 143, paragraph 1. 1, no. 2, section 248 (4). 2, section 248 (a) (a) 5, section 248 b, paragraph 1. 3, and Section 373 (3). 4, in the law of financial activities, cf. Law Order no. 182 by 18. February 2015, as amended by law no. 308 of 31. March 2015 shall be determined :

Chapter 1

Scope of application

§ 1. This notice shall apply to Group 1 and Group 2-Insurance Companies.

Chapter 2

Operational Plans

§ 2. An operational plan drawn up in the application for authorization to carry out the insurance undertaking, cf. Section 18 of the financial undertaking shall cover the first five financial year of the insurance undertaking and be quarterly split.

Paragraph 2. If the company ' s first account is taken after a period of less than one year, the operational plan shall cover this period and the five subsequent financial years.

§ 3. The operating schedule shall include the following :

1) The business model of the insurance company.

2) details of the nature of the risks or obligations to which the insurance undertaking intends to take on.

3) Information on the company management of the insurance company.

4) 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.

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

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

7) Decision of the intended reinsurance programmes and creditworthiness.

8) The estimated cost of the construction of the insurance company ' s administration during the period in which the operations plan is set.

9) The estimated administrative costs, apart from costs related to the structure of administration, in particular the current general costs and commissions.

Paragraph 2. Insurance undertakings engaged in business covered by Annex 7 in the Act of Finance, shall in their operating plan, in addition to the provisions referred to in paragraph 1. 1 mentioned information, including the following :

1) The estimated premiums, including the company ' s expectations, of premiums for the payment of their own account in relation to compensation costs.

2) The estimated premiums or contributions and claims charges.

3) Information about the equipment that the company has to use for company covered by insurance class 18.

Paragraph 3. Insurance undertakings engaged in activities covered by Annex 8 in the law on financial activities shall in their operations plan in addition to the provisions referred to in paragraph 1. 1 mentioned information, including the following :

1) A detailed summary of the expected revenue and expenses related to the direct insurance undertaking and the takeover and return of reinsurance.

2) The technical basis on which the operating plan is based.

§ 4. A group of one insurance company must in the company ' s operating plan, in addition to the information referred to in section 3, include the following :

1) A estim of the future solvency capital requirement, cf. Section 126 c of the law of financial activities, on the basis of the expected balance, information about the method used for the calculation of such estimates and a summary of the company ' s capital base, cf. Section 126 (b) in the law of financial operations, to cover the solvency capital requirement.

2) An estimate of the future minimum capital requirements, cf. Section 126 on the basis of the expected balance, information on the method used for the calculation of such estimates as well as a summary of the company base chapter of the company, cf. § 126 b, paragraph 1 2, in the case of a financial undertaking, to cover the absolute minimum for the minimum capital requirement, cf. § 126 d, paragraph 1 Five, in the law of financial activities.

3) A estituation of the financial resources intended for the coverage of technical provisions, the solvency capital requirement and the minimum capital requirement.

4) An assessment of the risk that the assurance undertaking shall not comply with the solvency capital requirement or to the minimum capital requirement within the first year of the solvency chapter.

5) An assessment of the risk that the insurance undertaking shall lose all its financial bases in the first year.

§ 5. A group of two-insurance undertakings shall in the company ' s operating plan, in addition to the information referred to in section 3, include the following :

1) A estim of the future individual solvency requirements, cf. section 16 and a summary of the company ' s basic capital, cf. § 128, paragraph. 1 and 2, in the law of financial activities.

2) An assessment of the risk that the insurance undertaking within the first year shall not comply with the minimum base capital, cf. § 126, paragraph 1. 2 and 3, in the law of financial operations, and the individual solvency requirements, cf. § 126, paragraph 1. 4, in the law of financial activities.

3) An assessment of the risk of the failure of the entire base chapter in the first year of the insurance undertaking within the first year.

§ 6. The financial supervision may require the insurance undertaking, in addition to the information referred to in section 3-5, to provide other information which is deemed necessary to assess whether the results of the operational plan may be considered to be realistic.

§ 7. For group 1 insurance undertakings, the granting of insurance shall not be granted if the Financial supervision is based on the information submitted in accordance with the information referred to in the case of the financial market. section 3 6, it is unlikely that the company in the period covered by the operational plan and at its expiration will be able to comply with the minimum capital requirement and the solvency capital requirement pursuant to section 126 c and 126 d in the Act of financial activities.

Paragraph 2. For Group 2 Insurance Companies, authorization to carry out insurers shall not be authorised if the financial supervision of the information submitted is unlikely that the company included in the period covered by the operational plan and at its end, will be able to meet the requirements for the size of the base capitale under section 126 of the Act of financial activities.

§ 8. Issuing authorization to carry an insurance undertaking shall be subject to the quarterly accounts of the insurance undertaking, cf. Section 2 (2). 1 or 2, will be submitted to the Financial supervision in a form that makes it possible to compare the actual results of the company with the expected results that are contained in the operational plan.

§ 9. The Financial supervision may decide that the operating plan must be reviewed or a new operational plan for the following 5 financial years from the decision, in the event of a deterioration in the financial position of the insurance undertaking in relation to the expectations set out in the original operational plan.

§ 10. The provisions of section 2 to 10 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.

Chapter 3

Plans for recovery and financing plans

§ 11. A plan for recovery, cf. section 248 and 248 A in the Act of Financial Company shall contain at least the information or documents relating to :

1) The estimated administrative costs of the insurance company, in particular the current general costs and commissions.

2) Information concerning the revenue and expenditure expected from the direct insurance undertaking and the takeover and rendition of reinsurance.

3) Expected accounting and solvency balances.

4) The proposed investment policy.

5) Statement for the intended reinsurance programmes and credit value.

Paragraph 2. For group 1 insurance undertakings, the plan shall be the plan for restoration beyond the provisions of paragraph 1. The information referred to above shall include an estimate of the financial resources intended to cover the technical provisions, capital bases, the solvency capital requirement and the minimum capital requirement.

Paragraph 3. For Group 2 Insurance Companies, the plan for re-establishing must be provided in addition to the provisions of paragraph 1. Paragraph 1 shall contain an estimate of the size of the individual solvency requirements and the base chapter.

§ 12. A group 1 insurance financial plan, cf. Section 248 (b) in the Act of Finance, must contain at least the provisions of section 11 (3). The information referred to in 1 and 2.

§ 13. A group of 1-insurers who have deviate a plan for restoration or financing plan will not be allowed to surrender its insurance stock in accordance with Article 3 (2). 1, in the notice of the transfer of group 1 insurance undertakings in which insurance contracts have been concluded in accordance with the rules of freedom of establishment or in the case of free services, as long as the insurance contracts are concluded ; The financial supervision estimates that the rights of the policy holders are at risk.

Chapter 4

Solvency of the Group 2-insurance undertakings

§ 14. A group of two-insurers shall at all times be in possession of a basic capital which at least corresponds to the greatest value of the individual solvency requirement, cf. section 16, and the minimum base capital requirement, cf. § 126, paragraph 1. 2 and 3, in the law of financial activities.

Risk Assessment

§ 15. A group of 2-assurance company shall carry out at least once a year to assess all significant risks to which the company is or may be met in its strategic planning period. The company must, no matter what 1. Act. conduct a new risk assessment immediately after significant changes are carried out in the company ' s strategy, business model, risk-risk or risk-tolerance boundaries.

Paragraph 2. The risk assessment must be carried out on the basis of the company ' s business model, risk profile and risk-tolerance limits and must include at least the following :

1) A qualitative description of the major risks of the insurance undertaking.

2) An assessment of the risks to be met with capital and which risks are met with risk-limiting measures, such as business practices, internal controls or the like.

3) A quantification of the major risks of the insurance company.

Paragraph 3. Within two weeks of the approval of the Management Board, the risk assessment shall be submitted to the Financial supervision.

The needs of the individual solvency

§ 16. A group of two-insurers shall make up the individual solvency requirements of the company, cf. § 126, paragraph 1. 4, in the law of financial activities.

Paragraph 2. The solvency requirement shall be calculated as the amount needed for the company to be able to cover the risk that has been calculated after the risk assessment after Section 15, on the existing business as well as new business, which is expected to be drawn within the following 12 months. The risk must be made up with a level of protection equivalent to Value-that-Risk with a level of confictional level of 99,5%. and a 12-month timeframe.

Paragraph 3. The Group 2-insurer shall make up the individual solvency requirements per year. 31. December and no later than 20 business days thereafter report the result to the Financial supervision. The company must make significant changes to the individual solvency requirements to be made a new statement and no later than 20 working days thereafter report the result to the Financial supervision.

Chapter 5

Penalty provisions

§ 17. The withdrawal of sections 8, 11, 12, 14 and 15, and section 16 (4), Three, punishable by fine.

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

Chapter 6

Entry into force

§ 18. The announcement shall enter into force on 1. January 2016.

Paragraph 2. Publication no. 1313 of 8. December 2014 on solvency and operational plans for insurance undertakings is hereby repealed.

Financial supervision, the 30. March 2015

Ulrik Nutgaard

/ Per Plougmand Bfermentation

Official notes

1) The announcement contains provisions that implement parts of Directive 2009 /138/EC of the European Parliament and of the Council of 25. Nov 2009 on access to and the exercise of the insurance and reinsurance business (Solvency II), EU Official Journal 2009, nr. In 335, page 1, as amended by Directive 2014 /51/EU of the European Parliament and of the Council of 16. April 2014 amending Directive 2003 /71/EC and 2009 /138/EC, as well as Regulation (EC) No, 1060/2009, (EU) No 1094/2010 and (EU) No 1095/2010 as regards the powers granted to the European Supervisory Authority (European Insurance and Occutency Pensions Authority) and the European Supervisory Authority (European Supervisory Authority (European Supervisory Authority) (European Union Securities and Securities and Securities, EU Official Journal (2014) L153, page 1.