Regulations for Financial Undertakings Act implementing the Solvency II Directive (Solvency II regulations)


Date FOR 2015-08-25-999


Affairs Ministry


Published In 2015 Booklet 10


Commencement 01/01/2016

Edited

FOR-2015-12-18-1763 from 31/01/2016

Changes

FOR 1991-05-10-301, FOR-1992-11-18-1242, TO-1995-05-19-482, FOR-1996-12-19-1320, FOR 2006-12-22 -1616, FOR-2007-12-17-1456

For
Norway

Legal

LOV-2015-04-10-17-§1-7, LOV-2015-04-10-17-§13-4, LOV-2015-04-10-17-Companies Act Section 13-5, legislation 2015-04-10-17-§13-6, LOV-2015-04-10-17-§13-8, LOV-2015-04-10-17-§13-10, LAW-2015-04-10 -17-§14-8, LOV-2015-04-10-17-§14-9, LOV-2015-04-10-17-§14-10, LOV-2015-04-10-17-§14 -11, LOV-2015-04-10-17-§14-12, LOV-2015-04-10-17-§14-13, LOV-2015-04-10-17-§14-14, legislation 2015-04-10-17-§18-2, LOV-2015-04-10-17-§18-7

Promulgated
09.01.2015 kl. 14.20

Short Title
Solvency II regulations

Chapter Overview:

Chapter 1. Technical provisions (§§ 1-4)
Chapter 2. Primary capital (§§ 5-6)
Chapter 3. SCR (§§ 7-20)
Chapter 4. minimum Capital Requirements (§§ 21-22)
Chapter 5. Investments (§23)
Chapter 6. The system of risk management and internal (§§ 24-29)
Chapter 7. Capital Additional (§30) || | Chapter 8. Insurance undertakings with weakened financial position (§§ 31-32)
Chapter 9. Information to the market (§§ 33-34)
Chapter 10. Reporting to the financial Supervisory Authority (§§ 35-37) || | Chapter 11 Insurance Groups (§§ 38-52)
Chapter 12. Implementation of Commission Regulation (§53)
Chapter 13. Entry into force, transitional provisions, etc.. (§§ 54-63)
Appendix 1 Standard method for calculating solvency capital requirement (SCR)

Adopted by the Ministry of Finance on 25 August 2015 pursuant to the Act of 10 April 2015 No.. 17 on financial institutions and financial (financial institutions Act) § 1-7, § 13-4, fourth paragraph, § 13-5 sixth paragraph, § 13-6 seventh paragraph, § 13.8, § 13 to 10, third paragraph, § 14-8, seventh paragraph, § 14-9 third paragraph, § 14-10, fourth paragraph, § 14-11, fifth paragraph, § 14-12 second paragraph, § 14 to 13, third paragraph, § 14-14, fourth paragraph, § 18-2, fourth paragraph, and § 18-7.
EEA information: EEA Agreement Annex IX. 1 (Directive 2009/138 / EC).
Changes: Amended by regulation 18 Dec 2015 No.. 1763.

Chapter 1. Technical reserves

§ 1. Principles for the calculation of technical provisions
(1) The calculation of reserves for insurance liabilities should be performed using relevant and appropriate technical and statistical methods and should be based on reliable information and realistic assumptions. Data used in the calculation should be complete, accurate and appropriate.

§ 2. Exceptions separate valuation of insurance liabilities
(1) Best estimate of the value of the insurance firm's insurance liabilities and risk margin should be considered separately, unless the cash flows related to those obligations may be reproduced (replicated) in a reliable manner by use financial instruments with reliable and observable market values.

§ 3. Yield curve
(1) In the valuation of insurance liabilities should insurance companies apply the risk-free yield curves as at any time published by the FSA.

(2) The Company may use interest rate curves with volatility adjustment unless otherwise specified by the FSA.

(3) FSA may allow the yield curve adjusted yield on a portfolio of bonds and other assets with similar cash flow characteristics that are directly linked to commitments (matching adjustment).

§ 4. Comparison with the entity experiences
(1) Insurance firms shall regularly compare the assumptions underlying the calculation of best estimates with their own experiences.

(2) If the comparison in accordance with subsection shows systematic deviations, the entity shall make the necessary adjustments to the actuarial methods being used and / or the assumptions applied.

Chapter 2. Primary capital

§ 5. The participating interests in other financial institutions.
(1) Insurance Company's basic capital shall be reduced in accordance with the rules in regulations issued by the Financial Supervisory Authority if the entity has participating interests, as defined in § 38 third and fifth paragraphs, investment firms, fund management companies, managers of alternative investment funds, loan brokerage firms and financial institutions that are not insurance companies or pension funds. The provision in the first sentence applies correspondingly to receivables in the form of other capital which the insurance undertaking holds in such enterprises.

§ 6. The division of the entity's capital

(1) Insurance Company's capital will be divided into three capital groups on the following criteria:

A)
capital may be used or paid on demand to cover any losses at all times.

B)
capital may liquidation used to cover losses and shall not be repaid until all other requirements are met, including claims arising out of insurance and reinsurance contracts.

(2) Upon division shall be taken of the duration and maturity, condition and incentives to repurchase and påheftede costs and rights.

(3) Basic Capital that satisfies the criteria in subsection A and B are included in the capital group 1.

(4) Basic Capital which meets the criteria in subsection b and supplementary capital that meets the criteria in subsection A and B are included in the capital group 2.

(5) Basic capital and supplementary capital not covered by the third or fourth paragraph, included in capital group 3.

(6) Other amounts in the capital not covered by equity positions in capital group 1, 2 or 3, shall be approved by the Financial Supervisory Authority for the detailed provisions of the Regulation of the Financial Supervisory Authority.

Chapter 3. SCR

§ 7. Calculation Frequency
(1) Insurance undertaking shall calculate solvency at least once a year and report the result of the calculation to the FSA.

(2) If the entity's risk profile deviates significantly from the assumptions underlying the last reported SCR, it shall immediately calculate solvency again and report this to the FSA.

§ 8. Standard Method for calculating solvency
(1) SCR standard method shall constitute the sum of

A)
capital requirements for insurance risk, insurance risk, insurance risk, market risk and counterparty risk,

B)
capital requirement for risk related to intangible assets,

C)
capital requirement for operational risk and

D)
adjustment for the loss absorbing capacity of technical provisions, including future profits and deferred taxes.

(2) The capital requirements as mentioned in the first paragraph a shall be aggregated using correlation matrix in Annex 1 to the Regulations.

(3) FSA may allow some of the parameters in the standard method is replaced by parameters specific to the insurance undertaking in calculating risk modules for insurance risk. Corporate-specific data used for the determination of such parameters must be complete, accurate and appropriate.

(4) Kredittilsynet may authorize life insurance undertakings employing a duration-sub module for equity risk.

§ 9. Simplified calculations of solvency capital requirement using the standard method
(1) Insurance Company may use a simplified calculation for parts of solvency when justified by the nature, scope and complexity of the risks faced by the company, and it is disproportionate to require full calculation. The detailed conditions for the use of simplified calculations provided by provisions in the regulations issued by the Financial Supervisory Authority.

§ 10. Internal models for calculating solvency
(1) An insurance undertaking may with the permission of the Financial Supervisory Authority calculate all or part of the solvency capital requirement based on internal models.

(2) Permission to use internal models can be given to firms which meet the requirements of § 15 to § 20 and further rules in regulations issued by the Financial Supervisory Authority, and which has a satisfactory system for identifying, measuring, monitoring and managing risk. FSA will decide on the application within six months after a complete application is received.

(3) An entity that has been granted permission to use an internal model, can not be switched to fully or partially using standard method without the consent of the Financial Supervisory Authority.

(4) FSA may allow companies with the parent company in another Member State uses an internal model approved by the state regulatory authority.

§ 11. Additional requirements for the use of a partial internal model
(1) Permission to use the internal model to calculate the share of the solvency capital requirement (partial internal model) assumes that the insurance undertaking

A)
justifies the limited scope of the internal model,

B)
proves that the solvency capital requirement arising out of the internal model reflects the company's risk profile and the principles of financial institutions Act § 14-10 in a better way than the standard method, and

C)
proves that the internal model is designed so that it can be combined with the standard method for calculating the overall solvency.


(2) FSA may require an internal model which only covers certain sub-modules of a specific risk module, or some business expands so that the model covers the greater part of the current risk module.

§ 12. The Board's responsibilities
(1) The board of the insurance undertaking shall approve the application for the use of an internal model and the application of any subsequent major changes in the model.

(2) The Board shall ensure that the company has systems which ensure that the model is functioning in accordance with the requirements and reflects the company's risk profile in an appropriate manner.

§ 13. Changes in an internal model
(1) Insurance Company can not change the internal model other than stipulated in the guidelines approved by the FSA.

(2) The guidelines shall specify which changes are considered significant. Such changes must be approved by the Financial Supervisory Authority.

§ 14. Failure to meet requirements for an internal model
(1) An insurance company which no longer meets the requirements of an internal model as set out in § 15 to § 20 shall immediately notify the Financial Supervisory Authority. The notification shall disclose how the requirements will be met and what consequences failure to fulfill the requirements may have. If the enterprise fails to comply within a reasonable time, the Financial Supervisory Authority may require that the entity calculates solvency standard method.

§ 15. Use of an internal model (application requirements)
(1) An internal model should form a central part of the insurance enterprise's risk management system and internal controls. The model will be used in the company's processes for assessing and allocating capital and in the entity's risk assessment and solvency.

§ 16. The design of an internal model
(1) An internal model shall be designed so that it satisfies the following requirements:

A)
model should be based on appropriate technical and statistical methods, realistic assumptions and reliable data and other information.

B)
The data shall be updated at least annually.

C)
model shall cover all relevant risks so that it can be used in accordance with § 15

D)
model should reflect risks relating to significant financial guarantees and contractual options and take into account the expected payments to policyholders and other insured.

E)
The model can take into account the effects of diversification if they are measured in a satisfactory manner.

F)
By use of risk mitigation techniques, the model should reflect credit risk and other risks in an appropriate manner.

G)
model can only pay attention to policy rules set by the company management (future management actions) if it is probable that they are implemented and the model takes into account the time required to carry out the actions.

§ 17. Calibration of an internal model
(1) Insurance Company may use a different time horizon or other risk measures when calculating the solvency capital requirement for an internal model if the calculation gives the same degree of safety as the calculation of the solvency capital requirement for financial institutions Act § 14 -10 second paragraph.

(2) If it is not possible to derive the SCR directly from the internal model, the FSA permit the use of approximate values ​​(approximations) if the enterprise proves that the requirement in the first paragraph are met.

(3) The entity shall apply the internal model on relevant benchmarks and use assumptions based on external data where FSA requires this as part of the assessment of the model.

(4) If the enterprise uses interest curve with volatility adjustment, the internal model does not include the risk of loss due to changes in volatility adjustment.

§ 18. Profitability Analysis using an internal model
(1) Insurance undertaking shall at least carry out an annual analysis of results and detect the causes and sources of profits and losses for each major business unit.

§ 19. Evaluation (validation) of an internal model
(1) Insurance undertaking shall regularly, at least annually validate the model. Validation should include the assumptions that underlie the model and parameters used. Model results will be compared with the entity experiences to examine the prediction ability. It should be examined whether the SCR is sufficient to cover the risk in the business.

(2) The model must be validated on all the relevant data and the new data collected since the last validation. Validation should include an assessment of the data base. Statistical methods to be used in the validation.

(3) Analyses of model stability and sensitivity analyzes to show how the model is affected by changes in the underlying assumptions.


(4) The validation results should be reported to the Board.

§ 20. Documentation of an internal model
(1) Insurance undertaking shall document the internal model's design, including theoretical, methodological and empirical basis, assumptions and limitations and that the entity is complying with requirements imposed by these regulations § 15 to § 19.

Chapter 4. Minimum Capital

§ 21. Calculation of minimum capital requirement
(1) Minimum capital requirement shall be calculated by a function of one or more of the following variables: technical provisions, premiums, uncovered risk, deferred tax and administrative expenses. There shall be established separate functions for life insurance liabilities and insurance liabilities.

(2) Insurance undertaking shall calculate the minimum capital requirement at least once every quarter and report the results to the FSA.

§ 22. Calculation of minimum capital requirements for life insurance undertakings providing general insurance
(1) Life Insurance Undertakings pursuant to financial institutions Act § 2-13 subsection provides accident or sickness insurance shall comply with detailed rules in regulations issued by the FSA estimate separate minimum capital respectively life insurance business and general insurance business as if the undertaking only offered assurances within its business area.

Chapter 5. Asset

§ 23. Derivatives
(1) Derivatives can only be used to reduce risks in the insurance company's assets or to streamline the management of these.

Chapter 6. The system of risk management and internal

§ 24. The system for risk
(1) Insurance Company's risk management system for financial institutions Act, § 13-5 first paragraph shall include the risks included in the calculation of solvency, as well as any other relevant risks.

(2) The system for risk management shall include at least

A)
underwriting,

B)
determination of technical provisions,

C)
liability management,

D)
investments, including derivatives and similar (binding) agreements,

E)
management of liquidity and concentration risk,

F)
operational risk management and

G)
reinsurance and other risk mitigation techniques.

§ 25. Risk using adjustments in the interest rate curve
(1) Insurance undertaking shall assess how sensitive the technical provisions and the eligible capital base is the choice of assumptions that underlie

A)
extrapolation of the yield curve,

B)
volatility adjustment and

C)
matching adjustment, including changes in the composition of the assigned portfolio of assets.

(2) In the cases mentioned in the first paragraph b and c, the entity shall also consider the possible effects of premature sale of assets.

(3) The Company shall prepare a liquidity plan for the cash flows that are subject to volatility or matching adjustment and regularly assess the impact that such adjustments lapses. If the effect is that the solvency capital requirement is no longer met, the entity shall consider measures that can be taken to increase capital or reduce its risk profile so that solvency capital requirement is met. The assessment shall be sent to the Financial Supervisory Authority.

(4) An entity that uses volatility adjustment shall have written policies covering the criteria for application of such adjustment.

§ 26. Self-assessment of risk and solvency
(1) In considering under financial institutions Act § 13-6 sixth paragraph shall insurance company to explain the methods and processes firm uses to detect and assess risks.

(2) If the entity uses volatility or matching adjustment or transitional provision for insurance reserves, a separate assessment also includes an evaluation of how the requirements would have been met with such adaptations.

(3) The self-assessment shall be carried out immediately if significant changes in the company's risk profile.

§ 27. The risk management function
(1) If the insurance company uses an internal model for calculating the capital requirement, the independent control function with responsibility for risk management (risk management function) responsible for

A)
design and use of model

B)
independent testing and verification of the model

C)
documentation of the model and of any subsequent amendments thereto,

D)
analysis of model and preparation of financial reports, and

E)
reporting to the board and management of the model function, proposed improvements and on the status of any improvements.

§ 28. Actuary

(1) The independent control function with responsibility for actuarial science tasks (Actuary) shall be performed by persons who have knowledge of technical insurance and financial mathematics at a level proportionate to the nature, scope and complexity of the risks in the business and who can demonstrate that they have relevant experience with applicable professional standards.

(2) Actuary shall

A)
coordinate the calculation of technical provisions,

B)
ensure that methodologies, models and assumptions in the calculation of technical provisions are appropriate

C)
assess whether the data used in the calculation of technical provisions are sufficient and necessary quality

D)
compare best estimates against the entity experiences

E)
inform the board and management whether the calculation of technical provisions is reliable and sufficient,

F)
verify simplified calculations of the best estimate based on the approximate values ​​(approximations) and individual assessments of reported injuries (legal provisions),

G)
comment on the firm's guidelines for underwriting,

H)
comment on the firm's reinsurance arrangements are sufficient, and

I)
contribute to the effective implementation of the risk management system, particularly with regard to risk modeling which forms the basis for the calculation of the solvency capital requirement and own assessment of the entity's capital.

§ 29. Notification of violations of the suitability
(1) Insurance undertakings should provide a special report to the Financial Supervisory Authority in cases where persons mentioned in financial institutions Act § 3-1 fourth paragraph has been replaced because they no longer meet the requirements of suitability of the Act § 3-5.

Chapter 7. Capital Additional

§ 30. Capital Additional
(1) If insurance entity applies volatility or matching adjustment or use transitional provision for insurance reserves, Finanstilsynet may order the enterprise to have higher capital requirements if the entity's risk profile deviates significantly from the assumptions used for the aforementioned adjustments or transitional provision.

(2) SCR used in the calculation of the risk margin shall not include capital additions that are required pursuant to the Financial Undertakings Act § 14-13, subsection c.

Chapter 8. Insurance undertakings with weakened financial position

§ 31. Plan for failure to fulfill the capital requirements
(1) Upon failure to fulfill solvency or minimum capital requirement, the insurance company without undue delay submit a recovery plan. The plan must be approved by the FSA.

(2) The plan must be realistic and include the following information:

A)
estimate of administrative costs, including the continuing general expenses and commissions

B)
estimates of revenue and expenditure for direct insurance activities as well as received and ceded reinsurance,

C)
forecasted balance

D)
estimate of the financial resources intended to cover technical provisions, solvency capital requirements and minimum capital requirements, and

E)
overall reinsurance program.

§ 32. Exemption from solvency
(1) Insurance undertakings may be granted an exemption from solvency up to six months when necessary to restore solvency. FSA may extend the exemption for up to three months or in specific cases grant a longer deadline to meet solvency.

Chapter 9. Information to the market

§ 33. Insurance Company's annual report on solvency and financial position, systems and procedures for publication, etc..
(1) Insurance The Company may in its annual public report on the solvency and financial position referring to information that is made public in accordance with law or regulation.

(2) The institution shall have systems and procedures to ensure compliance with the duty under financial institutions Act § 14-12. The enterprise must also have guidelines to help ensure that the information published is appropriate.

(3) The report on the firm's solvency and financial position to be approved by the Board prior to publication.

§ 34. Exemption from disclosure
(1) Financial Supervisory Authority may grant exemptions from the requirements of financial institutions Act § 14-12 on the publication of information on certain information if

A)
publication will provide enterprise competitors substantial and unreasonable competitive advantage, or

B)
information is subject to confidentiality.


(2) If the undertaking given permission not to disclose certain information, it shall give a reasoned statement on this in its report on the solvency and financial condition.

(3) The first paragraph does not apply to information about an enterprise's capital situation.

Chapter 10. Reporting to FSA

§ 35. Systems and procedures for reporting to the FSA
(1) Insurance institution shall have systems and procedures to ensure compliance with the firm's reporting obligations to the Financial Supervisory Authority. The enterprise must also have board-approved guidelines that will help to ensure that information submitted to the Financial Supervisory Authority at any time is appropriate.

§ 36. Restrictions on reporting frequency
(1) Financial Supervisory Authority may grant exemptions from the requirement for quarterly reporting for insurance undertakings if

A)
reporting of the information would be disproportionate in relation to the nature, scope and complexity of the risks relating to the company or group's activities, and

B)
information submitted to the Financial Supervisory Authority at least annually.

§ 37. Exemptions from reporting requirements
(1) Financial Supervisory Authority may grant exemptions from the requirements of the regular supervisory reporting or do absolutely exemptions from the requirement to submit detailed tasks (post-by-post-reporting) if

A)
reporting of the information would be disproportionate in relation to the nature, scope and complexity of the risks relating to the business,

B)
reporting of those data are not necessary for an effective supervision of the firm,

C)
exception does not undermine the stability of the affected financial systems in the EEA and

D)
entity may disclose this information upon request.

Chapter 11. Insurance Groups

§ 38. Scope
(1) The provisions of this chapter apply

A)
insurance undertaking's parent company or participating interests in or are under common management with at least one other insurance undertakings, and

B)
insurance undertakings where the parent company is a holding company of a financial group in the EEA.

(2) FSA may decide that the rules of this chapter shall also apply to insurance undertakings where the parent company is a holding company of a financial or insurance companies outside the EEA and for the parent company as stated in financial institutions Act § 17-6 subsection c.

(3) As a participant interests calculated enterprises that have direct or indirect ownership of 20 percent or more of the voting rights or capital of another enterprise.

(4) FSA may decide that undertakings which are considered to exercise a dominant influence over another undertaking otherwise than through ownership shall be considered as the parent company.

(5) FSA may decide that undertakings through voting rights or capital is considered to exercise significant influence over another undertaking shall be deemed to have participating interests even though its stake is less than 20 percent.

§ 39. Exceptions to the scope
(1) The provisions of this chapter do not apply to undertakings referred to in § 38 first paragraph which itself is a subsidiary to another insurance company or other holding companies in the financial group with headquarters in a Member State.

(2) The provisions of this chapter do not apply to holding companies in financial groups in addition to owning insurance companies also own other financial corporations, if the credit institution business and securities business together constitute the main part of the Group's activities and the holding company is subject to consolidation rules in CRR / CRD IV Regulations . The sum of credit institution operations and securities operations shall be deemed to constitute the bulk of any company business when at least 60 percent of consolidated total assets and capital from other financial institutions in the group than insurance undertakings. FSA can individual decisions decide that the provisions of this chapter entirely or partially still apply to holding companies as mentioned in the first sentence when substantial prudential or solvency considerations indicate.

(3) The provisions of this chapter do not apply to holding companies in financial groups in addition to owning insurance companies also own other financial corporations, if

A)
insurance business and

B)
sum of credit institution business and securities business


Separately account for at least 40 percent of consolidated total assets and capital, and the holding company is subject to the provisions of Regulation 18 December 2005 no. 1764 concerning consolidation etc. in sectoral groups. FSA can individual decisions decide that the provisions of this chapter entirely or partially still apply to holding companies as mentioned in the first sentence when substantial prudential or solvency considerations indicate.

(4) FSA may decide that the provisions of this chapter shall not apply to holding companies in financial groups in addition to owning insurance companies also own other financial institutions, whose holding company is subject to consolidation rules in CRR / CRD IV regulations or rules in the Regulations consolidation etc. in sectoral groups and these rules provide a satisfactory picture of the solvency of the group.

(5) FSA may decide that an enterprise should not be covered by the group audit when

A)
entity has its registered office in a third country where there are legal impediments to the transfer of necessary information,

B)
entity has negligible interest with respect to the objectives of group supervision, or

C)
inclusion of the entity would be inappropriate or misleading with respect to the objectives of group supervision.

§ 40. Supervision of sub
(1) FSA may decide that the provisions concerning

A)
gruppesolvens,

B)
risk concentration and group internal transactions and

C)
risk management and internal

Whole or in part shall also apply to insurance undertakings which are themselves subsidiaries to another insurance company or other holding companies in the financial group with headquarters in another state in the EEA.

(2) FSA may decide that the calculation of gruppesolvens shall be made for a method and using an internal model approved in another EEA state.

§ 41. Gruppesolvens
(1) In calculating gruppesolvens be holding entity referred to in § 38 subsection b, is regarded as an insurance undertaking.

(2) The provisions given in or pursuant to the Financial Undertakings Act § 14-8 first paragraph and § 14-9, § 14-10 and § 14-14 first paragraph must be fulfilled at the group level.

§ 42. Consolidation Rules etc.
(1) Gruppesolvensen be calculated in accordance with Financial Undertakings Act § 18-2 and principles of the second paragraph and § 43 to § 47. If the consolidation of accounts is not considered appropriate, the FSA may decide that gruppesolvensen whole or in part shall be calculated by an alternative method .

(2) FSA may determine the percentage that will be included on consolidation of enterprises with common management and for enterprises which are covered by group supervision under § 38 fourth and fifth paragraphs.

§ 43. Elimination of internal financing of capital requirements
(1) The value of assets of an enterprise within a group representing funding of eligible capital in an insurance company of the group, to be deducted from the calculation of gruppesolvens.

§ 44. Transferability of regulatory capital
(1) Primary capital in an associate that Finanstilsynet's assessment can not be made available to meet the solvency at group level, can only be included in the calculation of gruppesolvens insofar capital can cover solvency in the related insurance undertaking.

(2) undersigned, but not paid, capital holdings covering solvency in a related insurance undertaking, may be included in the calculation of gruppesolvens unless they constitute potential liabilities of another insurance undertaking in the group.

§ 45. Use of computational
(1) Gruppesolvensen shall include all entities that are part of a group. Intermediate holding company shall in this context be considered as insurance undertakings so that the rules laid down in or pursuant to the Financial Undertakings Act § 14-8 first paragraph, § 14.9 and § 14 to 10 shall apply mutatis mutandis to the intermediate holding company.

(2) If a related insurance undertaking has its head office in another EEA State, calculation taking into account the solvency and the eligible capital laid down in this state unless otherwise stipulated by the Financial Supervisory Authority.

(3) If a related insurance undertaking has its head office in a state outside the EEA, the rules in subsection apply unless otherwise stipulated by the Financial Supervisory Authority.

(4) If an associate is an investment firm or financial institutions that are not insurance or pension shall gruppesolvensen calculated by Method 1 or Method 2 of Annex I to Directive 2002/87 / EC (conglomerate directive), unless FSA decides that it should be deducted from the value of the participating interest in the capital of the group.


(5) If there is not sufficient information on enterprises to be included in the calculation of gruppesolvens, the carrying amount of the investment are deducted from the capital base that could be included in gruppesolvensen. Unrealized gains associated with such an investment should not be included in regulatory capital.

§ 46. Method of calculating gruppesolvens
(1) SCR at group level based on consolidated data shall be calculated using the standardized approach or an approved internal model group.

(2) Group's consolidated solvency capital requirements shall at least amount to the sum of the proportionate share of the minimum capital requirement for entities making up the group.

(3) The minimum requirement pursuant to subsection shall be covered by own funds from capital groups 1 and 2. The principles in § 42 to § 45 shall apply mutatis mutandis. The rules of financial institutions Act § 14-14 first paragraph applies correspondingly.

§ 47. Capital Additional on group level
(1) If the group's consolidated solvency capital does not give a satisfactory picture of the group's risk profile, FSA impose capital addition in accordance with the provisions laid down in or pursuant to the Financial Undertakings Act § 14-13 third paragraph.

§ 48. Supervision of groups that have centralized risk
(1) Insurance undertakings which are subsidiaries of another insurance undertaking may be under special group supervision under EEA rules corresponding to Articles 238 and 239 of Directive 2009/138 / EC if the following conditions are met:

A)
system for risk management and internal control of the parent company covers activities of the subsidiary and the parent company is considered to exercise proper corporate governance at the subsidiary.

B)
The parent company has received permission to report their assessment of risk and solvency collected.

C)
The parent company has received permission to issue one report on solvency and financial condition.

(2) Applications should be sent supervisory authority of the subsidiary. FSA will consider applications from parent company with subsidiaries that are domiciled in Norway and submit this to the Ministry for a final decision.

§ 49. Reporting on risk concentration and transactions within a group
(1) Insurance undertakings referred to in § 38 first paragraph shall at least annually submit a report to the FSA about any significant risk concentration at group level as well as all significant transactions between insurance undertakings in the group and transactions concluded with a natural person with close links to the group. Particularly significant transactions shall be notified without undue delay.

(2) FSA can decide which types of risk and the types of transactions a particular group in any circumstance shall report, including exempting undertakings from reporting obligations under the first paragraph.

§ 50. Risk management and internal control at group level
(1) Provisions made in or pursuant to the Financial Undertakings Act, § 13-5 to § 13-8 shall be met at the group level.

(2) FSA may allow self-assessment of risk and solvency at group level coordinated with the assessment of a subsidiary in the group and reported in a joint document containing all the reviews. Permission to send a joint assessment involves no modification in the individual insurance firms' obligation to ensure that the requirements for self-assessment are met.

§ 51. Reporting to market
(1) The provisions given in or pursuant to the Financial Undertakings Act § 14-12 shall be met at the group level.

(2) FSA may allow the company to produce a joint report which shall include information on the group's solvency and financial position as well as information on any subsidiary of the group, to be identified individually.

(3) If a joint report referred to in subsection does not contain sufficient information about a subsidiary and omission considered significant, Finanstilsynet may require the subsidiary disclose the necessary additional information.

§ 52. Publication of the group structure
(1) firms mentioned in § 38 first paragraph shall annually publish the legal entity structure and management and organizational structure, including a description of all subsidiaries, significant associated companies and major subdivisions in the group .

Chapter 12. Implementation of Commission Regulation

§ 53. Implementation of Commission Regulation (EC) 2015/35
(1) Financial Supervisory Authority may issue regulations corresponding provisions of Commission Regulation (EC) 2015/35 of 10 October 2014 on supplementary rules of Directive 2009/138 / EC (Solvency II directive), with the necessary adjustments.

Chapter 13. Entry into force, transitional provisions, etc..

§ 54. Commencement
(1) This regulation enters into force on 1 January 2016.


(2) FSA may from the date of the determination of these Regulations issue a decision on approval of

A)
supplementary capital, cf. Financial Undertakings Act § 14-9 second paragraph, and detailed rules in regulations issued by the Financial Supervisory Authority,

B)
classification of capital items in accordance with § 6, sixth paragraph,

C)
use of undertaking specific parameters in accordance with § 8 subsection

D)
use of full or partial internal model in accordance with § 10 first paragraph and § 11 subsection

E)
special purpose vehicles with the purpose to acquire insurance risk, cf. Financial Undertakings Act § 2-12, fourth paragraph, and detailed rules in regulations issued by the Financial Supervisory Authority, and

F)
use of the transitional provisions for technical provisions in § 56.

(3) Finanstilsynet may from the date of approval of these regulations make decisions on the application of the rules on insurance groups, cf. § 38 and § 39

§ 55. Exceptions for insurance undertakings under liquidation
(1) FSA may exempt insurance undertakings not sign new insurance after 1 January 2016, the rules given in or pursuant to the Finance Authority Act, § 13-5 second paragraph, § 13 -6 sixth paragraph, § 13.8 and § 14.7 to § 14-12.

(2) Exceptions may not be granted to firms that are part of a group, unless all entities in the group is under liquidation.

§ 56. Technical reserves
(1) Financial Supervisory Authority may authorize life insurance undertakings up to and including 31 December 2031 reduces the value of technical provisions for financial institutions Act § 14-8. The reduction will be equivalent to a percentage of the difference between

A)
technical provisions for life insurance business according to the rules of financial institutions Act § 14-8 with regulations, after deducting amounts that may be levied in accordance with reinsurance contracts and from special purpose vehicles with the purpose to acquire insurance risk, and

B)
sum of premium reserve, supplementary reserves, securities adjustment reserve, premium fund, deposit fund and the pension surplus fund calculated pursuant to the provisions of the Insurance Act, Chapter 3 with regulations

For those cases where the amount referred to in subparagraph a is greater than the amount referred to in subparagraph b.

(2) The difference in the first paragraph may be calculated for homogenous risk groups.

(3) The maximum reduction under subsection shall scaled down linearly at the beginning of each year, from 100 per cent on 1 January 2016 to 0 percent on 1 January 2032.

(4) The reduction in the first paragraph shall not be larger than life insurance undertaking technical provisions at least equivalent to the lower of the amount mentioned in the first paragraph a and the amount mentioned in subsection b.

(5) The amount in the first paragraph a shall be calculated with a volatility adjustment, if insurance firm uses such an adjustment.

(6) The difference in the first paragraph shall be recalculated at the end of each year. FSA may, upon application or by order establish frequent calculation.

(7) If the insurance company is not fulfilling solvency without the use of transitional provisions, it shall immediately inform the FSA of this and submit a plan of action to ensure that solvency met by 1 January 2032. The Company shall annually submit a report to the FSA with description of the measures implemented and the progress with regard to fulfilling solvency by 1 January 2032.

(8) FSA shall withdraw permission to use the transitional provision if the present report shows that it is unrealistic that the enterprise will meet solvency at the end of the transitional period.

§ 57. Own funds
(1) Subordinated loans without fixed maturity should be included in the capital group 1 up to and including 31 December 2025, if they are approved as supplementary capital to cover 50 percent of the lowest of the solvency margin and solvency margin at the end of 2015.

(2) Subordinated loans with a fixed maturity should be included in the capital group 2 until 31 December 2025 if they are approved as supplementary capital to cover up to 25 percent of the lowest of the solvency margin and solvency margin at the end of 2015. | ||
§ 58. The SCR standard method
(1) In 2016 and 2017 shall not be calculated solvency capital requirements using the standardized approach for credit spread risk and concentration risk of exposures to governments or central banks within the EEA, if these are denominated in the currency of another EEA state. In 2018. The solvency capital requirement for such exposures is calculated by reducing the default parameters for the calculation of credit spread risk and concentration risk by 80 percent. In 2019, the solvency capital requirement for such exposures is calculated by reducing the default parameters for the calculation of credit spread risk and concentration risk by 50 percent.


(2) Insurance undertakings may in a transitional period of up to seven years calculate solvency capital requirement for equity risk so that it shares acquired on 1 January 2016 or earlier used a weighted average of

A)
standard parameter for the duration-under module for equity risk and

B)
standard parameter for equity risk without the use of this sub-module.

The weight for the parameter mentioned in letter b shall increase at least linearly at the beginning of each year from 0 percent on 1 January 2016 to 100 per cent on 1 January 2023.

§ 59. Investments in securitized loans
(1) Supplementary rules on responsible investment given in regulations issued by the Financial Supervisory Authority does not apply to investments in securitized loans issued before 1 January 2011 and which are not supplied new exposures for 31 December 2014.

§ 60. Insurance undertakings with weakened financial position
(1) FSA may allow insurance undertakings which fulfilled the solvency margin pr. 31 December 2015 but which do not meet solvency in 2016, shall comply with solvency capital requirement by 31 December 2017.

(2) The Company shall every three months, submit a report to the Financial Supervisory Authority with a description of the measures implemented and the progress with regard to fulfilling solvency at the end of the transitional period.

(3) If the present report shows that there has been no significant progress with regard to fulfilling solvency shall FSA withdraw permission granted under subsection.

(4) Insurance undertakings which fulfilled the solvency margin pr. 31 December 2015 but which do not meet the minimum capital requirement shall comply with the minimum capital requirement by 31 December 2016.

§ 61. Reporting deadlines
(1) In the period 1 January 2016 to 31 December 2018, the following deadlines for the insurance enterprise's reporting obligations:

A)
Information that insurance undertaking shall submit FSA annually or less, shall be submitted no later

I)
20 weeks after the fiscal year ending 31st December 2016

Ii)
18 weeks after the fiscal year ending 31st December 2017

Iii)
16 weeks after the fiscal year ending no later than 31 December 2018.

B)
Information that insurance undertaking shall submit FSA each quarter shall be submitted no later

I)
8 weeks quarters ending in 2016

Ii)
seven weeks after quarters ending in 2017

Iii)
6 weeks after quarters ending in 2018.

C)
For reinsurance undertaking the publication of an annual report on the solvency and financial position, cf. Financial Undertakings Act § 14-12, the time limits in a) accordingly.

(2) For reporting at group level extended deadlines mentioned in the first paragraph a) to c), with 6 weeks.

§ 62. Application of the transitional provisions at group level
(1) The provisions of § 56, § 57, § 58, § 59 and § 60 subsections apply correspondingly to groups.

§ 63. Repeal of regulations
(1) The following regulations shall be repealed from 1 January 2016:

A)
Regulations on 10 May 1991 no. 301 on minimum technical provisions and drafting of risk statistics in non-life insurance and reinsurance.

B)
Regulations on 18 November 1992 no. 1242 concerning minimum requirements for technical provisions and drafting of risk statistics in non-life insurance and reinsurance (complementary).

C)
Regulations on 19 May 1995 no. 482 on the calculation of solvency capital and solvency margin for Norwegian insurance companies and reinsurance companies.

D)
Regulation of 19 December 1996. 1320 concerning technical provisions on co-insurance in the general insurance within the EEA.

E)
Regulations 22 December 2006 No.. 1616 on minimum capital in insurance companies, pension funds, pension companies and the holding company of the insurance group.

F)
Regulation of 17 December 2007 no. 1456 on insurance companies' asset.

Appendix 1 Standard method for calculating solvency capital requirement (SCR)

Using the standard method shall solvency is calculated as follows:
SCR = BSCR + SCROR + AdjTA_US '
where
SCR = the SCR calculated by the standard method,
BSCR = basic requirement for solvency capital calculated using the standard method ,
SCROR = contribution to the solvency of operational risk calculated using the standardized approach and
AdjTA_US = adjustment for the loss absorbing capacity of technical provisions (including future profits) and deferred taxes.
Basic requirements for solvency shall be calculated as follows:

Where indices i and j has one of the following values: MR, KR, LR, HR or SR.
Furthermore

Korri, j = correlation between risk module and risk module j,
SCRMR = contribution to the basic requirement of solvency (BSCR) from risk module for market risk,
SCRKR = contribution to the basic requirement of solvency (BSCR) from risk module for counterparty risk (credit risk)
SCRLR = contribution to the basic requirement of solvency (BSCR) from risk module for insurance risk,
SCRHR = contribution to the basic requirement of solvency (BSCR) from risk health underwriting risk module,
SCRSR = contribution to the basic requirements for solvency (BSCR) from risk module for insurance risk
and
scrire = contribution to the basic requirement of solvency (BSCR) from risk module for intangible assets.
The correlation between risk module and risk module j is given by the cell in the row and column ji following correlation matrix: