BETA

Activities of Chris MACMANUS 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
2023/07/27
Committee: ECON
Dossiers: 2021/0295(COD)
Documents: PDF(518 KB) DOC(179 KB)
Authors: [{'name': 'Markus FERBER', 'mepid': 1917}]

Amendments (67)

Amendment 228 #
Proposal for a directive
Recital 11 a (new)
(11 a) Member States could make insurance undertakings that are excluded from the scope of Directive 2009/138/EC subject to provisions that are similar or identical to the ones provided for in that Directive.
2022/08/01
Committee: ECON
Amendment 234 #
Proposal for a directive
Recital 19
(19) Reporting and disclosure deadlines should be clearly laid down in Directive 2009/138/EC. However, it should be recognised that extraordinary circumstances such as sanitary emergencies, natural catastrophes and other extreme events could make it impossible for insurance and reinsurance undertakings to submit such reports and disclosures, within the established deadlines. To this end, the CommissionEIOPA should be empowered to extend the deadlines under such circumstances.
2022/08/01
Committee: ECON
Amendment 245 #
Proposal for a directive
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. Those risks can be better taken into account in the own-risk and solvency assessment. Where iInsurance 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, except when the undertaking can prove that it has no material exposure to climate change risks. 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.
2022/08/01
Committee: ECON
Amendment 252 #
Proposal for a directive
Recital 31
(31) The burden of the auditing requirement does not seem to be justified for low-risk profile undertakings, which are not expected to be relevant for the financial stability of the Union and whose policyholders are not numerous. One of the criteria that low-risk profile undertakings are required to meet is that they be small in size. To alleviate this burden, an exclusion from this requirement should be granted. However, as some Member States have already implemented audit requirements encompassing all undertakings and other parts of the solvency and financial condition report, they should have the possibility to apply auditing to all undertakings and other parts of the solvency and financial condition report.
2022/08/01
Committee: ECON
Amendment 306 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Directive 2009/138/EC
Article 4 – paragraph 1 – points a and b
(2) in Article 4(1), points (a) and (b) are replaced by the following: ‘ (a) written premium does not exceed EUR 15 000 000; (b) technical provisions,deleted the undertaking’s annual gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred in Article 76, does not exceed EUR 50 000 000;; ’total of the undertaking’s
2022/08/01
Committee: ECON
Amendment 315 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 a (new)
Directive 2009/138/EC
Article 4 – paragraph 1 – subparagraph 1 a (new)
(2a) in Article 4(1), the following subparagraph is added: 'Member States may define a threshold different to that laid down in point (a) of the first subparagraph if that different threshold applies to a material number of insurance and reinsurance undertakings with low risk profile and representing a residual market share. Such a threshold shall not exceed EUR 25 000 000.';
2022/08/01
Committee: ECON
Amendment 319 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Directive 2009/138/EC
Article 13 – paragraph 1 – point 10a a (new)
(10aa) ‘significant cross-border activities’ means 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 has been identified by the relevant supervisory authority of the home Member State and the supervisory authorities of any Member State the undertaking intends to carry-out its business on the basis of its nature, scale and complexity of risk inherent in the business model and pursuant to Article 26(5);
2022/08/01
Committee: ECON
Amendment 324 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 a (new)
(41a) 'science-based target' means a target defined on the basis of conclusive scientific evidence and with independent scientific validation, that when achieved by the undertaking ensures that the undertaking's impacts on sustainability matters, as referred to in Articles 132 and 44(2), will be aligned with the sustainability goals and criteria of the European Union for the specific sustainability matters;
2022/08/01
Committee: ECON
Amendment 330 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 b (new)
(41b) 'climate neutrality' shall be read in accordance with Article 2(1) of the Regulation (EU) 2021/1119 ("European Climate Law");
2022/08/01
Committee: ECON
Amendment 333 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 c (new)
(41c) 'fossil fuel sectors' means upstream sectors of the economy which produce, process, store, transport or use fossil fuels as defined in Article 2(62) of Regulation (EU) 2018/1999 of the European Parliament and of the Council1a; __________________ 1a Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action
2022/08/01
Committee: ECON
Amendment 337 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/128/EC
Article 13 – paragraph 1 – point 41 d (new)
(41d) 'sustainability risk' means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential negative impact on the value of the investment or on the value of the liability in line with Article 2(22) of Regulation (EU) 2019/20881a; __________________ 1a Regulation (EU) 2019/2088 of the European Parliament and of the European Council of 27 November 2019 on sustainability-related disclosures in the financial services sector
2022/08/01
Committee: ECON
Amendment 340 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 e (new)
(41e) 'sustainability factors' means sustainability factors as defined in Article 2, point (24) of Regulation (EU) 2019/2088 of the European Parliament and of the Council1a; __________________ 1a Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability- related disclosures in the financial services sector
2022/08/01
Committee: ECON
Amendment 342 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 f (new)
(41f) 'transition plan' is the plan of an insurance or reinsurance undertaking to ensure that its business model and strategy are compatible with the transition to a sustainable economy and with the goals of the Paris Agreement to limit global warming to 1.5°C with no or limited overshoot, including plans to address the greenhouse gas emissions associated directly or indirectly with its asset and insurance portfolios;
2022/08/01
Committee: ECON
Amendment 344 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point i
Directive 2009/138/EC
Article 13 – paragraph 1 – point 41 g (new)
(41g) 'stewardship' is the engagement strategy of the insurance or reinsurance undertaking to steer the activities of the assets it holds, as its shareholders' rights allow, and to influence the strategy and business of the firms in which it invests, in order to progress towards sustainable economic activities and towards a more positive impact on sustainability factors;
2022/08/01
Committee: ECON
Amendment 349 #
Proposal for a directive
Article 1 – paragraph 1 – point 11
Directive 2009/13/8/EC
Article 26 – paragraph 4
4. Where several supervisory authorities need to be consulted pursuant to paragraph 1, any supervisory authority concerned may request additional information from the supervisory authority of the home Member State to jointly assess the application for authorisation. The supervisory authority of the home Member State shall consider the conclusions of the joint assessment when taking its final decision and report the outcome and reason for its decision to all supervisory authorities consulted pursuant to paragraph 1 and to EIOPA.;
2022/08/01
Committee: ECON
Amendment 350 #
Proposal for a directive
Article 1 – paragraph 1 – point 11
Directive 2009/138/EC
Article 26 – paragraph 4 a (new)
4 a. The supervisory authority of the home Member State shall assess the nature, scale and complexity of the risks inherent in the business model of the insurance undertaking for any of the markets in which the insurance undertaking seeks authorisation for carrying out its business. The home Member State may consult with the relevant supervisory authority of host Member States and shall inform the relevant supervisory authority and EIOPA about the conclusion of this assessment. Where the relevant supervisory authority disagrees with the assessment, EIOPA may, at the request of any relevant supervisory authority, assist the supervisory authorities in reaching an agreement.
2022/08/01
Committee: ECON
Amendment 383 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
3. The supervisory authority may oppose the classification as low-risk profile undertaking within one month of receipt of the notification referred to in paragraph 1 of this Article on grounds related exclusively to the non-compliance with the conditions foreseen under Article 29a. A decision of the supervisory authority to oppose to the classification shall be done in writing and state the reasons of the supervisory authority’s disagreement. Absent such decision, the insurance undertaking shall not be classified as low- risk profile undertaking as of the end of the one month opposition period or an earlier date where the supervisory authority has issued a decision earlier confirming compliance with criteria.
2022/08/01
Committee: ECON
Amendment 389 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2009/138/EC
Article 29c – paragraph 2
2. Where the supervisory authority has serious concerns in relation to the risk profile of a low-risk profile undertaking, the supervisory authority may, in exceptional circumstances,shall request the undertaking concerned to refrain from using one or several proportionality measures listed in paragraph 1 provided this is justified in writing on consideration of the impact on the organisation of the undertaking and the specificities or change of its risk profile.
2022/08/01
Committee: ECON
Amendment 405 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
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 grossere these activities are of relevance written premium of the undertaking, measured with reference to the last available financial statement of the undertaking.;h 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.
2022/08/01
Committee: ECON
Amendment 418 #
Proposal for a directive
Article 1 – paragraph 1 – point 17
Directive 2009/138/EC
Article 35a – paragraph 2
2. The supervisory authorities concerned may limit regular supervisory reporting, or exempt insurance and reinsurance undertakings from reporting on an item-by-item basis, where: (a) would be overly burdensome in relation to the nature, scale and complexity of the risks inherent in the business of the undertaking; (b) is not necessary for the effective supervision of the undertaking; (c) the stability of the financial systems concerned in the Union; and (d) the information upon request. Supervisory authorities shall not exempt from reporting, on an item-by-item basis, insurance or reinsurance undertakings that are part of a group within the meaning of Article 212(1), point (c), unless the undertaking can demonstrate to the satisfaction of the supervisory authority that reporting on an item-by- item basis is inappropriate, given the nature, scale and complexity of the risks inherent in the business of the group and taking into account the objective of financial stability. The exemption from reporting on an item- by-item basis shall be granted only to undertakings that do not represent more than 20 % of a Member State’s life and non-life insurance or reinsurance market respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions. When determining the eligibility of undertakings for those limitations or exemptions, supervisory authorities shall give priority to low-risk profile undertakings.deleted the submission of that information the submission of that information the exemption does not undermine the undertaking is able to provide
2022/08/01
Committee: ECON
Amendment 423 #
Proposal for a directive
Article 1 – paragraph 1 – point 18
Directive 2009/138/EC
Article 35b – paragraph 4
4. The Commission may adopt delegated acts Without prejudice to the powers of EIOPA under Article 18 of Regulation (EU) No 1094/2010, EIOPA may, at the request of one or several national supervisory authorities or on its own initiative, declare operations-disrupting events as exceptional. An operations- disrupting event may only be declared as exceptional if it is caused by a sanitary emergency, a natural catastrophe or another extreme event and if it affects materially the operational capabilities of insurance and reinsurance undertakings representing accordance with Article 301a to change significant share of the market or of the affected lines of business in one or several Member States. Where EIOPA has declared an operations-disrupting event as exceptional, the national supervisory authorities concerned may, within 3 months following the declaration, temporarily extend, for affected undertakings, the deadlines laid downreferred to in paragraphs 1, 2, and 3 of this Article, provided that the change is necessary due to sanitary emergencies, natural catastrophes or other extreme events.; or 3 by up to 10 weeks. Based on the declaration by EIOPA of an operations-disrupting event as exceptional, the national supervisory authorities concerned may, where necessary, extend those deadlines for reporting obligations which are due within 6 months from the declaration by EIOPA. Where the affected undertakings are part of a group to which group supervision applies in accordance with Article 213(2), national supervisory authorities shall inform without delay the group supervisor of this extension.
2022/08/01
Committee: ECON
Amendment 430 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a
Directive 2009/138/EC
Article 41 – paragraph 1 – subparagraph 3 a (new)
Insurance and reinsurance undertakings shall set individual quantitative objectives in view of improving gender-balanced representation of both sexes within their governance structures.
2022/08/01
Committee: ECON
Amendment 431 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point b
Directive 2009/138/EC
Article 41 – paragraph 2a – subparagraph 2
When the undertaking has been classified as a low-risk profile undertaking, the persons responsible for the key functions of risk management, actuarial and compliance function may also perform any other key function different from internal audit, any other non-key function or be a member of the administrative, management or supervisory body provided that the following conditions are met: (a) properly managed; (b)deleted potential conflicts of interests are the combination of a function with the condition of membership of the administrative, management or supervisory body does not compromise the person’s ability to carry out her or his responsibilities.;s or
2022/08/01
Committee: ECON
Amendment 435 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
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 and pay transparency, stewardship, and, where relevant, outsourcing. They shall ensure that those policies are implementedhave a written transition plan, as described in Article 44a. They shall ensure that those policies and the transition plan are implemented. Policies shall integrate sustainability risk.
2022/08/01
Committee: ECON
Amendment 448 #
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point - a (new)
Directive 2009/138/EC
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 risk, 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
2022/08/01
Committee: ECON
Amendment 449 #
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point - a a (new)
Directive 2009/138/EC
Article 42 – paragraph 2
(-aa) paragraph 2 is replaced by the following: "2. Insurance and reinsurance undertakings shall notify the supervisory authority of any changes to the identity of the persons who effectively run the undertaking or are responsible for other key functions, along with the reasons for the changes and all information needed to assess whether any new persons appointed to manage the undertaking are fit and proper. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)" Or. en
2022/08/01
Committee: ECON
Amendment 455 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b – point i a (new)
Directive 2009/138/EC
Article 44 – paragraph 2a – subparagraph 1 a (new)
(i a) the following subparagraph is inserted after the first subparagraph: "As regards underwriting, reserving and investment, insurance and reinsurance undertakings shall perform a regular assessment and ensure that their business strategy and activities for underwriting and their whole portfolio of assets are aligned with the objective of achieving climate neutrality in the EU 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").";
2022/08/01
Committee: ECON
Amendment 468 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b a (new)
Directive 2009/138/EC
Article 44 – paragraph 5 a (new)
(ba) the following paragraph is added: "5a. The written policy on remuneration referred to at Article 41(3) shall promote sound and effective risk management in line with the written policy on risk management referred to in Article 41(3), including in relation to sustainability risks and the adverse impacts of the insurance or reinsurance undertaking on sustainability factors. Where an undertaking's remuneration schemes include both fixed and variable components, the variable remuneration component should be not less than 50 percentage points linked to the achievement of the targets set as part of the transition plan of the undertaking, as referred to in Article 44a."
2022/08/01
Committee: ECON
Amendment 471 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 a (new)
Directive 2009/138/EC
Article 44 a (new)
(23a) the following Article is inserted: 'Article 44a Transition plans 1. Insurance and reinsurance undertakings shall develop and adopt a written transition plan covering both underwriting and investment activities. These plans shall insure that the undertaking's operations are compatible with the transition to a sustainable economy and with the goal of limiting global warming to 1.5ºC with no or limited overshoot, in line with the Paris Agreement and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change. The plans shall include specific science- based targets across the short-, medium- and long-term, including absolute emission reduction targets for attributable greenhouse gas emissions for 2025 and 2030. Each plan shall include implementing actions for the achievement of these targets for the next 5 years. 2. The transition plan should be adopted no later than [1 year after the date of the application of this Directive] and reviewed at least every two years. It should be subject to prior approval by the administrative, management or supervisory body of the undertaking. The transition plan shall be well integrated into the organisational structure and into the decision-making processes of the insurance or reinsurance undertaking. The system of governance required under Article 41 shall include a clear allocation and appropriate segregation of responsibilities for implementing the transition plan and provide for proper consideration of the implementation of the transition plan by the persons who effectively run the undertaking or have other key functions. 3. The transition plan shall be integrated into the risk management system required under Article 44, including by identifying, measuring, monitoring, managing and reporting matters that pose a risk to the successful implementation of the transition plan. 4. The transition plans prepared by insurance and reinsurance undertakings in line with this article shall be used to fulfil the disclosure obligations referred to in Article 19a or Article 29a of Directive 2013/34/EU1a.’ __________________ 1a Directive 2013/34 of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC
2022/08/01
Committee: ECON
Amendment 480 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point a
Directive 2009/138/EC
Article 45 – paragraph 1 – subparagraph 2 – point e
(e) consideration and analysis of the activities of the undertaking that may affect the macroeconomic and financial markets’ developments, and have the potential to turn into sources of systemic risk. This analysis consider the cumulative effect of its activities when combined with similar actions by other undertakings;
2022/08/01
Committee: ECON
Amendment 483 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b
Directive 2009/138/EC
Article 45 – paragraph 1a – subparagraph 1 – point e
(e) climate change, biodiversity loss, pandemics, other mass-scale events and other catastrophes, which may affect insurance and reinsurance undertakings.
2022/08/01
Committee: ECON
Amendment 488 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point b a (new)
Directive 2009/138/EC
Article 45 – paragraph 2
(ba) paragraph 2 is replaced by the following: "2. For the purposes of paragraph 1(a), the undertaking concerned shall have in place processes which are proportionate to the nature, scale and complexity of the risks inherent in its business and which enable it to properly identify and assess the risks it faces in the short and long term and to which it is or could be exposed. The undertaking shall demonstrate the methods used in that assessment. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630), including sustainability risks, and its own principal adverse impacts on sustainability factors. The undertaking shall demonstrate the methods used in that assessment. " Or. en
2022/08/01
Committee: ECON
Amendment 493 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 1
1. For the purposes of the identification and assessment of risks referred to in Article 45(2), the undertaking concerned shall also assess whether it has anspecify material exposure to climate change risks. The undertaking shall demonstrate the materiality of its exposure to climate change risks in the assessment referred to in Article 45(1) least three long- term climate scenarios.
2022/08/01
Committee: ECON
Amendment 496 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 2 – introductory part
2. WThere the undertaking concerned has material exposure to climate change risks, the undertaking shall specify at least two long-term climate change scenarios, long-term climate change scenarios referred to in paragraph 1 shall cover a modelling period of at least 30 years and shall includinge the following scenarios:
2022/08/01
Committee: ECON
Amendment 497 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 2 – point a
(a) a long-term 'orderly transition' climate change scenario where the global temperature increase remainsclimate change policies are introduced early and become gradually more stringent, resulting in global greenhouse gas emissions reaching net-zero by 2050 and limiting the global temperature increase to below two degrees Celsius;
2022/08/01
Committee: ECON
Amendment 500 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Directive 2009/139/EC
Article 45a – paragraph 2 – point b
(b) a long-term 'disorderly transition' climate change scenario where the global temperature increase is equal to or higher thanclimate policies are delayed or divergent, resulting in later and sharper global greenhouse gas emission reductions, with the global temperature increase remaining below two degrees Celsius.;
2022/08/01
Committee: ECON
Amendment 503 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 2 – point b a (new)
(b a) a long-term climate change scenario where the global temperature increase is equal to or higher than two degrees Celsius.
2022/08/01
Committee: ECON
Amendment 507 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 5 a (new)
5 a. By way of derogation from paragraphs 1, 2, 3 and 4, insurance undertakings that can demonstrate the they do not have any material exposure to climate change risks shall neither be required to specify climate change scenarios nor to assess their impact on the business of the undertaking.
2022/08/01
Committee: ECON
Amendment 509 #
Proposal for a directive
Article 1 – paragraph 1 – point 25 a (new)
Directive 2009/128/EC
Article 50 – paragraph 1
(25a) paragraph 1 of Article 50 is replaced by the following: "1. The Commission shall adopt delegated acts in accordance with Article 301a to further specify the following: (a) the elements of the systems referred to in Articles 41, 44, 46 and 47, and in particular the areas to be covered by the asset–liability management and investment policy, as referred to in Article 44(2), of insurance and reinsurance undertakings; (b) the functions referred to in Articles 44, 46, 47 and 48. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630); (c) minimum standards and reference methodologies for the transition plans referred to in Article 44a; (d) specific, measurable targets based on scientific evidence, referred to in Article 44a and set out in Article 13; (e) minimum standards and reference methodologies on how insurance and reinsurance undertakings should integrate sustainability risks and adverse impacts on sustainability factors into their risk management systems in accordance with Article 44, including in relation to the types of sustainability risks and sustainability factors that should be considered by insurance and reinsurance undertakings and processes for identifying and managing adverse impacts on sustainability factors. The Commission shall, at least every three years after its date of application, review any delegated act adopted pursuant to points (c) and (d) of this paragraph, taking into consideration the technical advice of the European Financial Reporting Advisory Group (EFRAG). Where necessary, the Commission shall amend such delegated acts to take into account relevant developments, including developments with regard to international standards for transition plans and science-based targets. 1a. When adopting delegated acts pursuant to paragraph 1 points (c) and (d), the Commission shall take account of the sustainability reporting standards adopted in accordance with the Directive 2014/95/EU. " Or. en
2022/08/01
Committee: ECON
Amendment 515 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/128/EC
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 and the principal adverse impacts of the insurance or reinsurance undertaking on sustainability factors, and with reference to how the undertaking's stewardship policy has contributed to addressing these impacts;
2022/08/01
Committee: ECON
Amendment 520 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – point b a (new)
(b a) where the undertaking conducts a climate change scenario analysis, a description of the results of the latest climate change scenario analysis as described in Article 45a, and a description of how the transition plan of the undertaking described in Article 44a is addressing and reducing the undertaking's exposure to climate change risks;
2022/08/01
Committee: ECON
Amendment 522 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point a
(a) a description of the system of governance, including a description of the role of the administrative, management and supervisory bodies with regard to sustainability risks in line with Article 41;
2022/08/01
Committee: ECON
Amendment 527 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point iii
(iii) for insurance and reinsurance undertakings relevant for the financial stability of the financial systems in the Union, information on risk sensitivity, including in relation to sustainability risks;
2022/08/01
Committee: ECON
Amendment 530 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi a (new)
(vi a) climate and other sustainability targets and transition plan targets of the undertaking, including absolute carbon emission reduction targets for its underwriting and investment portfolios, submitted in accordance with Articles 44(2a) (new) and 44a (new), and the progress made towards implementing them;
2022/08/01
Committee: ECON
Amendment 534 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c – point vi b (new)
(vi b) how the undertaking's business model and strategy take account of sustainability risks faced by the undertaking.
2022/08/01
Committee: ECON
Amendment 537 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point c
Directive 2009/138/EC
Article 51 – paragraph 1b – point c a (new)
(c a) where the undertaking conducts a climate change scenario analysis, a description of the results of the latest climate change scenario analysis as described in Article 45a, and a description of how the transition plan of the undertaking described in Article 44a (new) is addressing and reducing the undertaking's exposure to climate change risks.
2022/08/01
Committee: ECON
Amendment 544 #
Proposal for a directive
Article 1 – paragraph 1 – point 27
2. Member States may extend the obligation laid down in paragraph 1 to captive insurance undertakings and, captive reinsurance undertakings and low risk profile undertakings.
2022/08/01
Committee: ECON
Amendment 546 #
Proposal for a directive
Article 1 – paragraph 1 – point 27
Directive 2009/138/EC
Article 51a – paragraph 3 a (new)
3 a. Member States may extend the scope of the audit requirement to other elements of the solvency and financial condition report.
2022/08/01
Committee: ECON
Amendment 547 #
Proposal for a directive
Article 1 – paragraph 1 – point 28 – point c a (new)
Directive 2009/138/EC
Article 52 – paragraph 3 a (new)
(ca) the following paragraph is added: ‘3a. EIOPA shall monitor the appropriateness and soundness of the criteria for identifying low-risk profile undertakings and groups and assess the effects of applying those criteria, at least with respect to the objectives of policyholders’ protection, financial stability and level playing field. EIOPA shall submit a report on its findings to the Commission by [OP please insert date = three years after entry into application].’;
2022/08/01
Committee: ECON
Amendment 552 #
Proposal for a directive
Article 1 – paragraph 1 – point 36
3a. The risk margin for the entire portfolio of insurance and reinsurance obligations shall be calculated using the following formula: 𝑹𝑴 = 𝑪𝒐𝑪 ∗ ∑ (𝒎𝒂𝒙(𝟎.𝟗𝟕𝟓 ,𝟓𝟎% ) ∗ 𝑺𝑪𝑹(𝒕)/(𝟏 + 𝒓 𝒕≥𝟎 𝒕 Where: (a) CoC denotes the Cost-of-Capital rates; (b) the sum covers all integers including zero; (c) SCR(t) denotes the Solvency Capital Requirement after t years; (d) r(t+1) denotes the basic risk-free interest rate for the maturity of t+1 years.
2022/08/01
Committee: ECON
Amendment 559 #
Proposal for a directive
Article 1 – paragraph 1 – point 36 a (new)
Directive 2009/138/EC
Article 77 – paragraph 5 a (new)
5a. The Cost-of-Capital rate referred to in paragraph 5 shall be assumed to be equal to 6%.
2022/08/01
Committee: ECON
Amendment 564 #
Proposal for a directive
Article 1 – paragraph 1 – point 37
Directive 2009/138/EC
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 be applied as of 1 January 2032The extrapolated risk-free rate shall be determined as follows: rFSP+h = FSP+h√((1+rFSP)FSP * exp(h*fh)) - 1 Where: fh = ln(1+UFR) + [(LLFR - ln(1+UFR)] * ((1-exp(-a*h)/(a*h)) (a) UFR is the Ultimate Forward Rate (b) a is the convergence speed parameter (c) LLFR is the Last Liquid Forward Rate (d) FSP is the First Smoothing Point. The convergence speed parameter a shall be set at 10%.
2022/08/01
Committee: ECON
Amendment 572 #
Proposal for a directive
Article 1 – paragraph 1 – point 37 a (new)
Directive 2009/138/EC
Article 77b – paragraph 1 – subparagraph 1 – point a
(37a) in subparagraph 1 of Article 77b(1) point (a) is replaced by the following: ‘the insurance or reinsurance undertaking has assigned a portfolio of assets, consisting of bonds and other assets with similar cash-flow characteristics, and excluding any assets in fossil fuel companies, activities, reserves and fossil fuel power plants, to cover the best estimate of the portfolio of insurance or reinsurance obligations and maintains that assignment over the lifetime of the obligations, except for the purpose of maintaining the replication of expected cash flows between assets and liabilities where the cash flows have materially changed; (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-’ Or. en 20210630Directive)
2022/08/01
Committee: ECON
Amendment 584 #
Proposal for a directive
Article 1 – paragraph 1 – point 38 – point c
Directive 2009/138/EC
Article 77d – paragraph 3 – subparagraph 1
3. The amount of the volatility adjustment to risk-free interest rates for a currecny shall be calculated as follows: 𝑉𝐴𝑐𝑢 = 85% ∙ 𝐶𝑆𝑆𝑅𝐶𝑈 ∙ 𝑰𝑳𝑹𝒄𝒖 ∙ ∙ 𝑅𝐶𝑆𝐶𝑈 Where: cu (a) VA is the volatility adjustment for a cu currency cu; cu (b) CSSR is the credit spread sensitivity cu ratio of an insurance or reinsurance undertaking for the currency cu; cu (c) RCS is the risk-corrected spread for cu the currency cu; (d) IL𝑅𝑐𝑢 is the illiquidity ratio of an insurance or reinsurance undertaking for the currency cu; IL𝑅𝑐𝑢 shall measure the degree of illiquidity of the liabilities in a currency.
2022/08/01
Committee: ECON
Amendment 591 #
Proposal for a directive
Article 1 – paragraph 1 – point 38 – point c
Directive 2009/138/EC
Article 77d – paragraph 4 – subparagraph 1
4. For the euro, the volatility adjustment shall be increased by a macro volatility adjustment. The macro volatility adjustment shall be calculated as follows: 𝑉𝐴𝐸𝑢𝑟𝑜, 𝜔𝑐𝑜 𝑚𝑎𝑐𝑟𝑜 = 85% ∙ 𝐶𝑆𝑆𝑅𝐸𝑢𝑟𝑜 ∙ 𝑰𝑳𝑹𝑬𝒖𝒓𝒐 ∙ 𝑚𝑎𝑥(𝑅𝐶𝑆𝑐𝑜 ― 1.3 ∙ 𝑅𝐶𝑆𝐸𝑢𝑟𝑜;0) Where: (a) VAEuro,macro is the macro volatility adjustment for a country co; (b) CSSREuro is the credit spread sensitivity ratio of an insurance or reinsurance undertaking for the euro; (c) RCSco is the risk-corrected spread for the country co; (d) RCSEuro is the risk-corrected spread for the euro; (e) wco is the country adjustment factor for country co; (f) ILREuro is the illiquidity ratio of an insurance or reinsurance undertaking for the euro; ILREuro is calculated for the euro in accordance with paragraph 3.
2022/08/01
Committee: ECON
Amendment 600 #
Proposal for a directive
Article 1 – paragraph 1 – point 39 a (new)
Directive 2009/138/EC
Article 78 – point 3 a (new)
(39a) in Article 78, the following point is added: ‘(43a) quantitative and qualitative estimates of risk of loss or of adverse change in the values of insurance and reinsurance liabilities, resulting from inadequate pricing and provisioning assumptions due to internal or external factors, including sustainability risks.’
2022/08/01
Committee: ECON
Amendment 617 #
Proposal for a directive
Article 1 – paragraph 1 – point 43 a (new)
Directive 2009/138/EC
Article 101 – paragraph 4 – subparagraph 2 a (new)
(43a) in paragraph 4 of Article 101, the following subparagraph is added: ‘Market risk referred to in point (d) of the first subparagraph shall include sustainability risks stemming from the current or prospective impacts of climate- related factors on the undertaking, its clients or invested assets, specifically covering risks related to the fossil fuel sector. Climate-related risks include both physical risk and transition risk.’
2022/08/01
Committee: ECON
Amendment 622 #
Proposal for a directive
Article 1 – paragraph 1 – point 43 b (new)
Directive 2009/138/EC
Article 105 – paragraph 5 – subparagraph 2 a (new)
(43b) in paragraph 5 of Article 105 the following subparagraph is added: ‘Equity and spread risk sub-modules referred to in points (a) and (d) of subparagraph 2 shall consider climate- related financial risks associated with fossil fuel sector exposures.’
2022/08/01
Committee: ECON
Amendment 638 #
Proposal for a directive
Article 1 – paragraph 1 – point 46 – point a
Directive 2009/138/EC
Article 111 – paragraph 1 – point m a (new)
(ma) the method and parameters to be used when assessing the capital requirement for climate-related financial risk in the case of exposures to fossil fuel assets referred to in Articles 101(4) and 105(5).
2022/08/01
Committee: ECON
Amendment 660 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point - a (new)
Directive 2009/138/EC
Article 132 – paragraphs 2 a (new) and 2 b (new)
(-a) the following paragraphs are inserted: ‘2a. Insurance and reinsurance undertakings shall take into account the potential long-term impact of their investment strategy and decisions on sustainability factors. Where relevant, that strategy and those decisions shall reflect the sustainability preferences of its customers taken into account in the produce approval process as referred to in Article 4 of Commission Delegated Regulation (EU) 2017/2358. 2b. Insurance and reinsurance undertakings shall have and shall publicly disclose a written policy in relation to their approach to stewardship including a summary of how the undertaking has taken steps to achieve the goals of the policy in the preceding year. The stewardship policy must be subject to prior approval by the administrative, management or supervisory body and shall be reviewed at least annually. Insurance and reinsurance undertakings shall integrate their transition plan within their investment strategy and decisions.’
2022/08/01
Committee: ECON
Amendment 661 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point b
Directive 2009/138/EC
Article 132 – paragraph 5
5. Member States shall ensure that insurance and reinsurance undertakings take account of possible macroeconomic and financial markets’ developments, including developments related to climate change and pandemics, and, at the request of the supervisory authority, macroprudential concerns when they decide on their investment strategy.
2022/08/01
Committee: ECON
Amendment 664 #
Proposal for a directive
Article 1 – paragraph 1 – point 49 – point b
Directive 2009/138/EC
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, including developments related to climate change, and have the potential to turn into sources of systemic risk, and incorporate such considerations. Undertakings should also consider the cumulative impact of their own investment strategy and those of other undertakings. These assessments and considerations should be incorporated as part of their investment decisions of the undertaking.
2022/08/01
Committee: ECON
Amendment 777 #
Proposal for a directive
Article 1 – paragraph 1 – point 89 – point c
Directive 2009/138/EC
Article 301a – paragraph 5
5. A delegated act adopted pursuant to Article 17, 29, 31, 35, 35b, 37, 44, 44a, 50, 56, 75, 86, 92, 97, 99, 109a, 111, 114, 127, 130, 135, 143, 172, 210, 211, 216, 217, 227, 234, 241, 244, 245, 247, 248, 256, 256b, 258, 260 or 308b shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of three months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.;
2022/08/01
Committee: ECON
Amendment 785 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Directive 2009/138/EU
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 activliabilities 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 activliabilities 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.
2022/08/01
Committee: ECON
Amendment 787 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Paragraph 304a – paragraph 1 – subparagraphs 2 a (new) and 2 b (new)
EIOPA shall review existing evidence and update the report every two years. EIOPA should also assess the impact that the proposed changes to the prudential framework would have on: (a) the underwriting and investment activities of undertaking that may affect the macroeconomic and financial markets' developments (in particular climate change) and have the potential to turn into sources of systemic risk; (b) advancing the objective to achieve climate neutrality in the EU 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"). By 31 December 2023, the Commission shall present a report to the European Parliament and the Council specifying how it will take into account EIOPA's report and findings. The Commission's report shall be accompanied, if appropriate, by a legislative proposal.
2022/08/01
Committee: ECON
Amendment 788 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Article 304a – paragraph 1 a (new)
1a. By 28 June 2023, EIOPA, after consultation with stakeholders, shall publish guidelines for supervisory authorities on how insurance and reinsurance undertakings shall integrate sustainability risks and adverse impacts on sustainability factors into their risk management systems in accordance with Article 44, including in relation to the types of sustainability risks and sustainability factors that shall be considered by insurance and reinsurance undertakings and processes for identifying and managing adverse impacts on sustainability factors.
2022/08/01
Committee: ECON
Amendment 791 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Article 304a – paragraph 2 a (new)
2a. EIOPA shall evaluate whether and to what extent insurance and reinsurance undertakings assess their material exposure to risks related to biodiversity loss as part of the assessment referred to in Article 45(1). EIOPA shall subsequently assess which actions could be taken in order to ensure that insurance and reinsurance undertakings do so, where necessary, taking into account existing measurement tools. EIOPA shall submit a report on its findings to the Commission by [one year after the entry into force of this amending Directive].
2022/08/01
Committee: ECON