Activities of Stéphanie YON-COURTIN related to 2021/0295(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/138/EC as regards proportionality, quality of supervision, reporting, long-term guarantee measures, macro-prudential tools, sustainability risks, group and cross-border supervision
Amendments (68)
Amendment 208 #
Proposal for a directive
Recital 3
Recital 3
(3) As underlined in the Commission’s Communication of 24 September 2020 ‘A Capital Markets Union for people and businesses’18 , incentivising institutional investors, in particular insurers, to make more long-term investments will be instrumental in supporting re-equitisation in the corporate sector. To facilitate insurers’ contribution to the financing of the economic recovery of the Union, the prudential framework should be adjusted to better take into account the long-term nature of the insurance business. In particular, when calculating the Solvency Capital Requirement under the standard formula, the possibility to use a more favourable standard parameter for equity investments which are held with a long- term perspective should be facilitated, provided. Such criteria should aim to ensure that insurance and reinsurance undertakings comply with sound and robust criteria, that preserve policyholder protection and financial stability. Such criteria should aim to ensure that insurance and reinsurancare able to avoid forced selling of equities intended to be held for the long term, including under stressed market conditions. As insurance and reinsurance undertakings have a wide range of risk- management tools to avoid such forced selling, the criteria should not require the legal or contractual ring-fencing of long- term investment assets in order to benefit from the more favourable standard parameter for equity investments. Finally, the undertaking’s are able to avoid forced selling of equities intended to be held for the lomanagement should commit to a minimum holding period of the equities through written policies and demonstrate its ability to maintain this portfolio over this holding tperm, including under stressed market conditionsiod, rather than being compelled to invest for the said holding period. __________________ 18 COM/2050/590 final
Amendment 216 #
Proposal for a directive
Recital 4
Recital 4
(4) In its Communication of 11 December 2019 on the European Green Deal19 , the Commission made a commitment to integrate better into the Union’s prudential framework the management of climate and environmental risks. The European Green Deal is the Union’s new growth strategy, which aims to transform the Union into a modern, resource-efficient and competitive economy with no net emissions of greenhouse gases by 2050. It will contribute to the objective of building an economy that works for the people, strengthening the Union’s social market economy, helping to ensure that it is future-ready and that it delivers stability, jobs, growth and investment. In its proposal of 4 March 2020 for a European Climate Law, the Commission proposed to make the objective of climate neutrality and climate resilience by 2050 binding in the Union. That proposal was adopted by the European Parliament and by the Council and it entered into force on 29 July 202120 . The Commission’s ambition to ensure global leadership by the EU on the path towards 2050 was reiterated in the 2021 Strategic Foresight Report21 , which identifies the building of resilient and future-proof economic and financial systems as a strategic area of action. To reflect that ambition, the insurance framework should be updated to ensure that insurance and reinsurance undertakings manage and mitigate climate and environmental risks. __________________ 19 COM(2019)640 final 20 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1). 21 COM(2021)750 final
Amendment 219 #
Proposal for a directive
Recital 5
Recital 5
(5) The EU sustainable finance framework will play a key role in meeting the targets of the European Green Deal and environmental regulation should be complemented by a sustainable finance framework which channels finance to investments that reduce exposure to these climate and environmental risks. In its Communication of 6 July 2021 on a Strategy for Financing the Transition to a Sustainable Economy22 , the Commission committed to propose amendments to Directive 2009/138/EC to consistently integrate sustainability risks in risk management of insurers by requiring climate change scenario analysis by insurers. As a result, sustainability risks should be reflected in underwriting and investment decisions. __________________ 22 COM(2021)390
Amendment 223 #
Proposal for a directive
Recital 6 a (new)
Recital 6 a (new)
(6 a) To ensure an orderly transition towards the objective of carbon neutrality as established in Regulation (EU) 2021/1119(European Climate Law), insurance and reinsurance undertakings in the scope of Directive (EU) 2021/0104 (COD) [CSRD Directive], as regards corporate sustainability reporting shall develop and adopt a transition plan to ensure that their business model and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement.
Amendment 235 #
Proposal for a directive
Recital 20 a (new)
Recital 20 a (new)
(20 a) Cyber risks remain top global risks for the financial sector and the economy and have increased during the Covid pandemic. Following the adoption of the Regulation 2020/0266 on digital operational resilience for the financial sector [DORA Regulation], cyber risks need to be better taken into account by insurers as part of their operational risks to prevent damages resulting from cyber- attacks. EIOPA should also consider how the insurance market could improve the coverage of cyber risks.
Amendment 237 #
Proposal for a directive
Recital 21
Recital 21
(21) As insurance activities maycould trigger or amplify risks for financial stability, insurance and reinsurance undertakings should incorporate macroprudential considerations and analysis in their underwriting, investment and risk management activities. This could include taking into account the potential behaviour of other market participants, macroeconomic risks, such as credit cycle downturns or reduced market liquidity, or excessive concentrations at market level in certain asset types, counterparties or sectors.
Amendment 239 #
Proposal for a directive
Recital 22
Recital 22
(22) Insurance and reinsurance undertakings should factor any relevant macroprudential information provided by the supervisory authorities in their own- risk and solvency assessment. (ORSA).The supervisory authorities should analyse the own-risk and solvency assessment supervisory reports of undertakings within their jurisdictions, aggregate them and provide input to undertakings on the elements that should be considered in their future own-risk and solvency assessments, particularly as regards macroprudential risks. Member States should ensure that, where they entrust an authority with a macroprudential mandate, the outcome and the findings of macroprudential assessments by the supervisory authorities are shared with that macroprudential authority.
Amendment 241 #
Proposal for a directive
Recital 24
Recital 24
(24) Authorities with a macroprudential mandate are in charge of the macroprudential policy for their national insurance and reinsurance market. The macroprudential policy can be pursued by the supervisory authority or by another authority or body entrusted with this purpose.
Amendment 242 #
Proposal for a directive
Recital 25
Recital 25
(25) Good coordination between supervisory authorities and the relevant bodies and authorities with a macroprudential mandate is important for identifying, monitoring and analysing possible risks to the stability of the financial system that may affect insurance and reinsurance undertakings, and for taking measures to effectively and appropriately address those risks. Cooperation between authorities should also aim to avoid any form of duplicative or inconsistent actions.
Amendment 246 #
Proposal for a directive
Recital 26
Recital 26
(26) Directive 2009/138/EC requires insurance and reinsurance undertakings to have, as an integrated part of their business strategy, a periodic own-risk and solvency assessment. Some risks, such as climate change risks, are difficult to quantify or they materialise over a period that is longer than the one used for the calibration of the Solvency Capital Requirement (SCR). Those risks can be better taken into account in the own-risk and solvency assessment. Where insurance and reinsurance undertakings have material exposure to climate risks, they should be required to carry out, within appropriate intervals and as part of the own-risk and solvency assessment, analyses of the impact of long-term climate change risk scenarios on their business. Such analyses should be proportionate to the nature, scale and complexity of the risks inherent in the business of the undertakings. In particular, while the assessment of the materiality of exposure to climate risks should be required from all insurance and reinsurance undertakings, long-term climate scenario analyses should not be required for low- risk profile undertakings.
Amendment 248 #
Proposal for a directive
Recital 27 a (new)
Recital 27 a (new)
(27 a) EIOPA is required to initiate and coordinate Union-wide assessments of the resilience of financial institutions to adverse market developments according to Article 32 of Regulation (EU) No 1094/2010. A first IORP stress test was launched in April 2022 with results expected in December 2022. Similarly, national supervisory authorities should perform stress tests on climate but also on environmental and social risks.
Amendment 250 #
Proposal for a directive
Recital 30
Recital 30
(30) In order to guarantee the highest degree of accuracy of the information disclosed to the public, a substantial part of the solvency and financial condition report should be subject to audit. Such audit requirement should cover the balance sheet assessed in accordance with the valuation criteria set out in Directive 2009/138/EC.
Amendment 255 #
Proposal for a directive
Recital 34
Recital 34
(34) The determination of the relevant risk-free interest rate term structure should balance the use of information derived from relevant financial instruments with the ability of insurance and reinsurance undertakings to hedge interest rates derived from financial instruments. In particular, it can happen that smaller insurance and reinsurance undertakings do not have the capacities to hedge interest rate risk with instruments other than bonds, loans or similar assets with fixed cash-flows. The relevant risk-free interest rate term structure should therefore be extrapolated for maturities where the markets for bonds are no longer deep, liquid and transparent. However, the method for the extrapolation should make use of information derived from relevant financial instruments other than bonds, where such information is available from deep, liquid and transparent markets for maturities where the bond markets are no longer deep, liquid and transparent. To ensure certainty and harmonised application while also allowing for timely reaction to changes in market conditions, the Commission should adopt delegated acts to specify how the new extrapolation method should apply. Under market conditions similar to those at the date of entry into force of this Directive, the starting point for the extrapolation of risk-free interest rates, in particular for the euro, should be at a maturity of 20 years. In addition, the extrapolated part of the relevant risk-free interest rate term structure, in particular for the euro, should converge so that for maturities40 years past the starting point of the extrapolation, the extrapolated forward rates do not differ more than seven basis points from the ultimate forward rate.
Amendment 272 #
Proposal for a directive
Recital 44
Recital 44
(44) As part of the supervisory review process, it is important for supervisory authorities to be able to compare information across the companies they supervise. Partial and full internal models allow to capture the individual risk of a companyn undertaking better and Directive 2009/138/EC allows insurance and reinsurance undertakings to use them for determining capital requirements without limitations stemming from the standard formula. However, partial and full internal models make comparisons across companies more difficult and supervisory authorities would therefore benefit from access to the outcome of the calculation of standard formula capital requirements. All insurance and reinsurance undertakings should therefore regularly report such information to their supervisors.
Amendment 274 #
Proposal for a directive
Recital 47
Recital 47
(47) National supervisory authorities should be able to collect relevant macroprudential information on the investment strategy of undertakings, analyse it together with other relevant information that might be available from other market sources, and incorporate a macroprudential perspective in their supervision of undertakings. This could include supervising risks related to specific credit cycles, economic downturns and collective or herding behaviour in investments.
Amendment 276 #
Proposal for a directive
Recital 54
Recital 54
(54) Supervisory authorities should have the necessary powers to preserve the solvency position of specific insurance or reinsurance undertakings during exceptional situations such as adverse economic or market events affecting a large part or the totality of the insurance and reinsurance market, in order to protect policyholders and preserve financial stability. Those powers should include the possibility to restrict or suspend distributions to shareholders and other subordinated lenders of a given insurance or reinsurance undertaking before an actual breach of the Solvency Capital Requirement (SCR) occurs. Those powers should be applied on a case-by-case basis, respect common risk-based criteria and not undermine the functioning of the internal market.
Amendment 296 #
Proposal for a directive
Recital 78
Recital 78
(78) Achieving the environmental and climate ambitions of the Green Deal requires the channelling of large amounts of investments from the private sector, including from insurance and reinsurance companies, towards sustainable investments. The provisions of Directive 2009/138/EC on the capital requirements should not impede sustainable investments by insurance and reinsurance undertakings but should reflect the full risk of investments in environmentally harmful activities. While there is not sufficient evidence at this stage on risk differentials between environmentally or socially harmful and other investments, such evidence may become available over the next years. In order to ensure an appropriate assessment of the relevant evidence, EIOPA should monitor and report by 2023 on the evidence on the risk profile of environmentally, including fossil fuel-related assets, or socially harmful investments. Where appropriate, EIOPA’s report should advise on changes to Directive 2009/138/EC and to the delegated and implementing acts adopted pursuant to that Directive. EIOPA may also inquire whether it would be appropriate that certain environmental risks, other than climate change-related, should be taken into account and how. For instance, if evidence so suggests, EIOPA could analyse the need for extending scenario analyses as introduced by this Directive in the context of climate change-related risks to other environmental risks.
Amendment 300 #
Proposal for a directive
Recital 79
Recital 79
(79) Climate change is affecting and will affect at least over the next decades the frequency and severity of natural catastrophes which are likely to further aggravate due to rising temperatures, environmental degradation and pollution. This may also change the exposure of insurance and reinsurance undertakings to natural catastrophe risk and render invalid the standard parameters for natural catastrophe risk set out in Delegated Regulation (EU) 2015/35. In order to ensure that there is no persistent discrepancy between the standard parameters for natural catastrophe risk and the actual exposure of insurance and reinsurance companies to such risks, EIOPA should review regularly the scope of the natural catastrophe risk module and the calibrations of its standard parameters. For that purpose, EIOPA should take into account the latest available evidence from climate science and, where discrepancies are found, it should submit an opinion to the Commission accordingly.
Amendment 314 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2009/138/EC
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) where the undertaking belongs to a group, the total of the technical provisions of the group defined as gross of the amounts recoverable from reinsurance contracts and special purpose vehicles does not exceed EUR 25 million; (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)50 000 000; Or. en
Amendment 356 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1– point a – subparagraph 1– point ii
Article 29a – paragraph 1 – subparagraph 1– point a – subparagraph 1– point ii
(ii) business underwritten in Member States other than the home Member State where the undertaking received its authorisation in accordance with Article 14 is not higher thanlower than at least one of the two following thresholds: EUR 15 000 000 or 5 % of its total annual gross written premium;
Amendment 357 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1– point a – subparagraph 1– point iv
Article 29a – paragraph 1 – subparagraph 1– point a – subparagraph 1– point iv
(iv) investments in non-traditional investments do not represent morethe gross market risk module referred to in Article 105(5) is not higher than 2015 % of total investments;
Amendment 363 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
(ii) business underwritten in Member States other than the home Member State where the undertaking received its authorisation in accordance with Article 14 is not highelower than at least one of the two following thresholds: EUR 15 000 000 or than 5 % of its total annual gross written premium;
Amendment 367 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1 – point b – subparagraph 1 – point v
Article 29a – paragraph 1 – subparagraph 1 – point b – subparagraph 1 – point v
(v) investments in non-traditional investments do not represent morethe gross market risk module referred to in Article 105(5) is not higher than 2015% of total investments;
Amendment 371 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point v
Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point v
(v) business underwritten in Member States other than the home Member State where the undertaking received its authorisation in accordance with Article 14 is not highelower than at least one of the two following thresholds: EUR 15 000 000 or than 5 % of its total annual gross written premium;
Amendment 374 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point vii
Article 29a – paragraph 1 – subparagraph 1 – point c – subparagraph 1 – point vii
(vii) investments in non-traditional investments do not represent morethe gross market risk module referred to in Article 105(5) is not higher than 2015% of total investments;
Amendment 377 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29a – paragraph 1 – subparagraph 2
Article 29a – paragraph 1 – subparagraph 2
Amendment 400 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2009/138/EC
Article 33a – paragraph 1 – subparagraph 2 – introductory part
Article 33a – paragraph 1 – subparagraph 2 – introductory part
This cooperatione intensity and the frequency of this cooperation shall be tailored to the risks entailed by the significant cross-border activities and shall cover at least the following aspects:
Amendment 403 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2009/138/EC
Article 33a – paragraph 2
Article 33a – paragraph 2
2. The supervisory authority of the home Member State shall, in a timely manner, inform the supervisory authority of the host Member State about the outcome of its supervisory review process related to the cross-border activity where potential issues of compliance with the provisions applicable in the host Member State have been identified. Supervisors should consider developing new tools and skills for the supervision of digitalised insurers and enhancing cooperation to ensure transparency as well as an efficient and timely exchange of information.
Amendment 404 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2009/138/EC
Article 33a – paragraph 3
Article 33a – paragraph 3
3. For the purpose of this Article, ‘significant cross-border activities’ are insurance and reinsurance activities carried out by an insurance or reinsurance undertaking under the right of establishment and those carried out under the freedom to provide services in a given host Member State, which exceed 5 % of the annual gross written premium of the undertaking, measured with reference to the last available financial statement of the undertaking.; meet at least one out of the two following requirements: (a) the total annual gross written premium of an undertaking corresponding to the activities carried out in a given host Member State under the right of establishment and under the freedom to provide services exceed EUR 15 000 000; (b) the activities carried out under the right of establishment or under the freedom to provide services are of relevance with respect to the host Member State’s market, in particular when the activities are considered as relevant by the supervisory authority of the host Member State. For the purpose of point (b), EIOPA shall issue Regulatory Technical Standards in accordance with Article 10 of Regulation (EU) 1094/2010 to further specify the conditions and cases to be used when determining which insurance or reinsurance undertakings are of relevance with respect to the host Member State’s market. For the purpose of point (b), in case the supervisory authority of the host Member State considers the activities carried out under the right of establishment or under the freedom to provide services are of relevance with respect to the host Member State’s market, it shall notify the supervisory authority of the home Member State. In case the supervisory authority of the home Member State disagrees on the relevance of the activities carried out under the right of establishment or under the freedom to provide services, it shall notify the supervisory authority of the host Member State within one month. In case of a disagreement on the relevance of the activities carried out under the right of establishment or under the freedom to provide services, the supervisory authorities shall refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010.
Amendment 424 #
Proposal for a directive
Article 1 – paragraph 1 – point 19 a (new)
Article 1 – paragraph 1 – point 19 a (new)
Directive 2009/138/EC
Article 36 – paragraph 2 – introductory part
Article 36 – paragraph 2 – introductory part
(19 a) in article 36(2), the introductory part is amended as follows: "The supervisory authorities shall in particular review and, evaluate and ensure compliance with the following: "
Amendment 429 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a
Article 1 – paragraph 1 – point 21 – point a
Directive 2009/138/EC
Article 41 – paragraph 1 – subparagraph 3
Article 41 – paragraph 1 – subparagraph 3
The system of governance shall be subject to regular internal review. Such internal review shall include an assessment on the adequacy of the composition, effectiveness, expertise about sustainability risks and internal governance of the administrative, management or supervisory body taking into account the nature, scale and complexity of the risks inherent in the undertaking’s business.;
Amendment 437 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 – subparagraph 1
Article 41 – paragraph 3 – subparagraph 1
3. Insurance and reinsurance undertakings shall have written policies in relation to at least risk management, internal control, internal audit, remuneration, stewardship and, where relevant, outsourcing and a written transition plan as described in Article 44a. They shall ensure that those policies arend the transition plan are properly implemented.
Amendment 447 #
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point - a (new)
Article 1 – paragraph 1 – point 22 – point - a (new)
Directive 2009/138/EC
Article 42 – paragraph 1 – point a
Article 42 – paragraph 1 – point a
(-a) paragraph 1, point (a) is replaced by the following: "(a) their professional qualifications, knowledge and experience, including in the field of sustainability risks, are adequate to enable sound and prudent management (fit); and (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)" Or. en
Amendment 459 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b a (new)
Article 1 – paragraph 1 – point 23 – point b a (new)
Directive 2009/138/EC
Article 44 – paragraph 2 b (new)
Article 44 – paragraph 2 b (new)
(ba) the following paragraph is inserted: "2b. As regards underwriting and investment, insurance and reinsurance undertakings shall perform a regular assessment and ensure that their business model, strategy and activities for underwriting portfolio and the whole portfolio of assets, are aligned with the objective to achieve climate neutrality by 2050 at the latest, as set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 (“European Climate Law”)."
Amendment 465 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b b (new)
Article 1 – paragraph 1 – point 23 – point b b (new)
Directive 2009/138/EC
Article 44 – paragraph 3 b (new)
Article 44 – paragraph 3 b (new)
(bb) the following paragraph is inserted: "3b. The written policy on risk management referred to in Article 41(3) shall include policies relating to sustainability risks and sustainability factors, as well as a stewardship policy that shall include a report on the impact of the policy in the last financial period, in particular the decisions taken by the insurance or reinsurance undertaking following the condition of climate change scenario analysis referred to in Article 45a to assess the risks referred to in Article 45(2)."
Amendment 466 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b c (new)
Article 1 – paragraph 1 – point 23 – point b c (new)
Directive 2009/138/EC
Article 44 – paragraph 4 a (new)
Article 44 – paragraph 4 a (new)
(bc) the following paragraph is inserted: "4a. The risk management system shall cover any sustainability risks to which the insurance or reinsurance undertaking is exposed to."
Amendment 470 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b d (new)
Article 1 – paragraph 1 – point 23 – point b d (new)
Directive 2009/138/EC
Article 44 – paragraph 5 a (new)
Article 44 – paragraph 5 a (new)
(bd) the following paragraph is added: ‘5a. As Covid 19 has shown an increased vulnerability of the insurance sector to cyber-attacks, as highlighted by the BIS study on Covid-19and cyber risk in the financial sector, EIOPA shall monitor and publish a report by 2024 on how to improve: i) the resilience of the insurance sector against cyber and ICT related risks; and ii) the coverage of policyholders against cyber-related risks.’
Amendment 476 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 a (new)
Article 1 – paragraph 1 – point 23 a (new)
Directive 2009/138/EC
Article 44 a (new)
Article 44 a (new)
(23a) The following article is inserted: 'Article 44a Transition plan 1. In order to demonstrate alignment with the Green Deal and the objective of carbon neutrality by 2050 at the latest as established in Regulation (EU) 2021/1119(European Climate Law),insurance and reinsurance undertakings in scope of Directive (EU)2021/0104 (COD) [CSRD Directive] shall develop and adopt a transition plan by no later than [1 year after the date of the application of the Directive]. 2. The plan shall be approved by the administrative, management or supervisory body of the insurance or reinsurance undertaking. The plan shall be reviewed at least every 2 years. 3. The plan shall be subject to the disclosure obligations referred to in article 19aand article 29a of the Directive amending Directive 2013/34/EU, Directive 2004/109/EC, Directive2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting.'
Amendment 479 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point a
Article 1 – paragraph 1 – point 24 – point a
Directive 2009/138/EC
Article 45– paragraph 1 – subparagraph 2 – point d
Article 45– paragraph 1 – subparagraph 2 – point d
(d) consideration and analysis of the macroeconomic situation, and possible or relevant macroeconomic and financial markets’ developments, and, upon a reasoned request of the supervisory authority, macroprudential concerns, that may affect the specific risk profile, the approved risk tolerance limits, the business strategy, the underwriting activities or the investment decisions, and the overall solvency needs referred to in point (a) of the undertaking;
Amendment 481 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point a
Article 1 – paragraph 1 – point 24 – point a
Directive 2009/138/EC
Article 45 – paragraph 1 – subparagraph 2 – point e
Article 45 – paragraph 1 – subparagraph 2 – point e
(e) consideration and analysis of the activities of the undertaking that maycould affect the macroeconomic and financial markets’ developments, and have the potential to turn into sources of systemic risk;
Amendment 484 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b
Article 1 – paragraph 1 – point 24 – point b
Directive 2009/138/EC
Article 45 – paragraph 1a – subparagraph 1 – point e
Article 45 – paragraph 1a – subparagraph 1 – point e
(e) climate change, global pandemics, other mass-scale events and other catastrophes, which may affect insurance and reinsurance undertakings.
Amendment 490 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point c a (new)
Article 1 – paragraph 1 – point 24 – point c a (new)
Directive 2009/138/EC
Article 45 – paragraph 4
Article 45 – paragraph 4
(ca) paragraph 4 is replaced by the following: "4. The own-risk and solvency assessment shall be an integral part of the business strategy and shall be taken into account on an ongoing basis in the strategic decisions of the undertaking. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)In particular, insurance and reinsurance undertakings shall take all necessary measures to ensure that they appropriately manage and address allmaterial risks identified, including climate change risks. " Or. en
Amendment 491 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point e
Article 1 – paragraph 1 – point 24 – point e
Directive 2009/138/EC
Article 45 – paragraph 8
Article 45 – paragraph 8
8. For the purpose of paragraph 1, points (d) and (e), of this Article, where authorities other than the supervisory authorities are entrusted with a macroprudential mandate, Member States shall ensure that the supervisory authorities share in due course the findings of their macroprudential assessments of the own- risk and solvency assessment by insurance and reinsurance undertakings, as referred to in Article 45, with the relevant national authorities with a macroprudential mandate.
Amendment 502 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 2 – point b
Article 45a – paragraph 2 – point b
(b) a long-term climate change scenario where the global temperature increase is equal to orsignificantly higher than two degrees Celsius.
Amendment 505 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 5
Article 45a – paragraph 5
5. By way of derogation from paragraphs 2, 3 and 4, insurance and reinsurance undertakings that are classified as low-risk profiAt regular intervals, the undertaking concerned shall perform a backward analysis on previous climate change scenarios to disclose to what extent their tools and principles undertakings shall neither be required to specify climate change scenarios nor to assess their impactsed when conducting their long-term climate change scenario analyses lead to an overestimation or underestimation onf the business of the undertaking.;materiality of its exposure to climate change risks.
Amendment 508 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 5 a (new)
Article 45a – paragraph 5 a (new)
5a. In order to ensure common, uniform and consistent application of this Article, EIOPA shall develop guidelines to facilitate common supervisory tools and specify the principles to be used when conducting long-term climate change scenario analyses referred to in Article 45a.
Amendment 513 #
Proposal for a directive
Article 1 – paragraph 1 – point 25 a (new)
Article 1 – paragraph 1 – point 25 a (new)
Directive 2009/138/EC
Article 45b (new)
Article 45b (new)
(25a) The following article is inserted : ‘Article 45b Stress tests of ESG risks 1. The national supervisory authorities shall carry out as appropriate but at least every two years supervisory stress tests of environmental, social and governance risks on institutions they supervise. 2. EBA,EIOPA and ESMA shall, through the Joint Committee referred to in Article 54 of Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010, develop guidelines to ensure that consistency, long-term considerations and common standards for assessment methodologies are integrated into the stress testing of environmental, social and governance risks.’
Amendment 518 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – point b
Article 51 – paragraph 1a – point b
(b) a brief description of the capital management and the risk profile of the undertaking., including in relation to sustainability risks;
Amendment 519 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – points b a (new) and b b (new)
Article 51 – paragraph 1a – points b a (new) and b b (new)
(b a) where the undertaking conducts a climate scenario analysis described in Article 45a, a description of the latest results; (b b) a description of the implementation of the transition plan described in Article 44a.
Amendment 541 #
Proposal for a directive
Article 1 – paragraph 1 – point 27
Article 1 – paragraph 1 – point 27
Directive 2009/138/EC
Article 51a – paragraph 1
Article 51a – paragraph 1
1. For insurance and reinsurance undertakings other than low-risk profile undertakings and captive insurance undertakings and captive reinsurance undertakings, the balance sheet disclosed as part of the solvency and financial condition report or as part of the single solvency and financial condition report shall be subject to an audit requirement.
Amendment 560 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 1 – subparagaph 1 – introductory part
Article 77a – paragraph 1 – subparagaph 1 – introductory part
1. The determination of the relevant risk-free interest rate term structure referred to in Article 77(2) shall make use of, and be consistent with, information derived from relevant financial instruments. That determination shall take into account relevant financial instruments of those maturities where the markets for those financial instruments are deep, liquid and transparent. The relevant risk-free interest rate term structure shall be extrapolated for maturities longer than the first smoothing point. The first smoothing point for a currency, such as the euro, shall be the longest maturity for which all of the following conditions are met:
Amendment 568 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 2 – subparagraph 1
Article 77a – paragraph 2 – subparagraph 1
2. For the purpose of paragraph 1, second subparagraph, any parameters determining the speed of the convergence of the forward rates towards the ultimate forward rate of the extrapolation may be chosen such that on [OP please insert date = application date] the risk-free interest rate term structure is sufficiently similar to the risk-free interest rate term structure on that date determined in line with the rules for the extrapolation applicable on [OP please insert date = one day before date of application]. Those parameters of the extrapolation shall be decreased linearly at the beginning of each calendar year, during a transitional period. The final parameters of the extrapolation shall bestart appliedying as of 1 January 2032.
Amendment 571 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
Article 77a – paragraph 2 a (new)
Article 77a – paragraph 2 a (new)
2a. As part of the assessment mentioned in Article 111(3), EIOPA shall verify whether market conditions have materially changed since the last recalculation of the speed of convergence of the extrapolated risk-free rate.
Amendment 628 #
Proposal for a directive
Article 1 – paragraph 1 – point 43 a (new)
Article 1 – paragraph 1 – point 43 a (new)
Directive 2009/138/EC
Article 105 a (new)
Article 105 a (new)
Amendment 648 #
Proposal for a directive
Article 1 – paragraph 1 – point 46 a (new)
Article 1 – paragraph 1 – point 46 a (new)
Directive 2009/138/EC
Article 111 – paragraph 3
Article 111 – paragraph 3
Amendment 651 #
Proposal for a directive
Article 1 – paragraph 1 – point 47
Article 1 – paragraph 1 – point 47
Directive 2009/138/EC
Article 112 – paragraph 7
Article 112 – paragraph 7
7. After having received approval from supervisory authorities to use an internal model, and each time they report the result of a calculation of the Solvency Capital Requirement pursuant to Article 102(1), insurance and reinsurance undertakings shall provide the supervisory authorities with an estimate of the Solvency Capital Requirement (SCR) determined in accordance with the standard formula, as set out in Subsection 2.;
Amendment 667 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point b
Article 1 – paragraph 1 – point 49 – point b
Directive 2009/138/EC
Article 132 – paragraph 6
Article 132 – paragraph 6
6. Insurance and reinsurance undertakings shall assess the extent to which their investment strategy may affect macroeconomic and financial markets’ developments and have the potential to turn into sources of systemic risk, and incorporate such considerations as part ofinto their investment decisions.
Amendment 699 #
Proposal for a directive
Article 1 – paragraph 1 – point 58
Article 1 – paragraph 1 – point 58
Directive 2009/138/EC
Article 152b – paragraph 5
Article 152b – paragraph 5
5. Where two or more relevant authorities of a collaboration platform disagree about the procedure or content of an action to be taken, or inaction, in relation to an insurance or reinsurance undertaking, EIOPA may, at the request of any relevant authority or on its own initiative,shall assist the authorities in reaching an agreement in accordance with Article 19(1) of Regulation (EU) No 1094/2010.
Amendment 705 #
Proposal for a directive
Article 1 – paragraph 1 – point 59
Article 1 – paragraph 1 – point 59
Directive 2009/138/EC
Article 153 – paragraph 1
Article 153 – paragraph 1
The supervisory authority of the host Member State may require the information which it is entitled to request with regard to the business of an insurance undertaking operating in the territory of that Member State either from the supervisory authority of the home Member State of that undertaking or, where the home supervisor fails to provide a response within two weeks, from the insurance undertaking. That information shall be supplied within a reasonable period of time in the official language or languages of the host Member State, or in another language accepted by the supervisory authority of the host Member State. Where the supervisory authority of the host Member State addresses the insurance undertaking directly, it shall inform the supervisory authority of the home Member State about the information request.;
Amendment 708 #
Proposal for a directive
Article 1 – paragraph 1 – point 60
Article 1 – paragraph 1 – point 60
Directive 2009/138/EC
Article 159a – paragraph 1 – subparagraph 2
Article 159a – paragraph 1 – subparagraph 2
For the purposes of this Article, ‘significant cross-border activities’ means insurance and reinsurance activities carried out under the right of establishment and those carried out under the freedom to provide services in a Member State for which the annual gross written premium exceeds 5 % of the annual gross written premium of the undertaking, measured with reference to the last available financial statements of the undertakingas defined in Article 33a (new).
Amendment 719 #
Proposal for a directive
Article 1 – paragraph 1 – point 61 – point c
Article 1 – paragraph 1 – point 61 – point c
Directive 2009/138/EC
Article 212 – paragraph 3 – subparagraph 1 a (new)
Article 212 – paragraph 3 – subparagraph 1 a (new)
Where the undertakings referred to in the first subgraph do not have their head office in the same Member State, Member States shall ensure that only national supervisory authority acting as group supervisor in accordance with Article 247 may conclude, after consulting other supervisory authorities concerned, that such undertaking form a group based on its opinion that those undertakings are managed on a unified basis.
Amendment 720 #
Proposal for a directive
Article 1 – paragraph 1 – point 61 – point c
Article 1 – paragraph 1 – point 61 – point c
Directive 2009/138/EC
Article 212 – paragraph 5 – point c a (new)
Article 212 – paragraph 5 – point c a (new)
(ca) evidence of coordinated and consistent strategies, operations or processes between two or more undertakings, including in relation to insurance distribution channels, insurance products or brands, communication or marketing.
Amendment 724 #
Proposal for a directive
Article 1 – paragraph 1 – point 61 – point c
Article 1 – paragraph 1 – point 61 – point c
Directive 2009/138/EC
Article 212 – paragraph 6 – subparagraph 1
Article 212 – paragraph 6 – subparagraph 1
6. Where the group fails to designate a parent undertaking in accordance with paragraph 3, second subparagraph, the supervisory authorities shall designatey acting as the group supervisor in accordance with Article 247 shall designate, after consulting other supervisory authorities concerned, a parent undertaking which is to be responsible for complying with this Title. The other undertakings in such group shall be considered as subsidiary undertakings.
Amendment 728 #
Proposal for a directive
Article 1 – paragraph 1 – point 62 – point c
Article 1 – paragraph 1 – point 62 – point c
Directive 2009/138/EC
Article 213 – paragraph 3b – subparagraph 2
Article 213 – paragraph 3b – subparagraph 2
Where the conditions set out in paragraph 3a, point (b), are not satisfied, the insurance holding company or mixed financial holding company shall be subject to appropriate supervisory measures by the group supervisor to ensure or restore, as the case may be, continuity and integrity of group supervision and compliance with the requirements laid down in this Title. In particular, Member States shall ensure that supervisory authorities when acting as group supervisors in accordance with Article 247 have the power to require the insurance holding company or mixed financial holding company to structure the group in a way which enables the relevant supervisory authority to effectively exercise group supervision. Such a power shall only be exercised in exceptional circumstances, after consulting EIOPA and, where applicable, other supervisory authorities concerned and shall be duly justified to the group.
Amendment 774 #
Proposal for a directive
Article 1 – paragraph 1 – point 84
Article 1 – paragraph 1 – point 84
Directive 2009/138/EC
Article 256c – paragraph 1
Article 256c – paragraph 1
1. Member States shall require a participating insurance or reinsurance undertaking, an insurance holding company or a mixed financial holding company of a group, to be subject to an audit requirement for the consolidated balance sheet disclosed as part of the group solvency and financial condition report or as part of the single solvency and financial condition report.
Amendment 782 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Article 304a – paragraph 1 – subparagraph 1
Article 304a – paragraph 1 – subparagraph 1
1. EIOPA, after consulting the ESRB, shall assess, on the basis of available data and the findings of the Platform on Sustainable Finance referred to in Article 20 of Regulation (EU) 2020/852 of the European Parliament and of the Council* and the EBA in the context of its work under the mandate set out in Article 501c, point (c), of Regulation (EU) 575/2013 whether a dedicated prudential treatment of exposures related to assets or activities associated substantially with environmental or social objectives would be justified. In particular, EIOPA shall assess the potential effects of a dedicated prudential treatment of exposures related to assets and activities which are associated substantially with environmental and/or social objectives or which are associated substantially with harm to such objectives on the protection of policy holders and financial stability in the Union, including fossil fuel related- assets.
Amendment 789 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Article 304a – paragraph 2 – subparagraph 1
Article 304a – paragraph 2 – subparagraph 1
2. EIOPA shall review at least every three years, with respect to natural catastrophe risk, the scope and the calibration of the standard parameters of the non-life catastrophe sub-module of the Solvency Capital Requirement (SCR) referred to in Article 105(2) , third subparagraph, point (b). For the purpose of those reviews, EIOPA shall take into account the latest available relevant evidence on climate science and the relevance of risks in terms of the risks underwritten by insurance and reinsurance companies that use the standard formula for the calculation of the non-life catastrophe sub-module of the Solvency Capital Requirement.
Amendment 792 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Article 304a – paragraph 2 a (new)
Article 304a – paragraph 2 a (new)
2a. EIOPA shall evaluate whether and to what extent insurance and reinsurance undertakings assess their material exposure to biodiversity-related risks as part of the assessment referred to in Article 45(1). EIOPA shall subsequently assess which actions should be taken to ensure that insurance and reinsurance undertakings dully consider these risks. EIOPA shall submit a report on its findings to the Commission by 28 June 2023.