Activities of Jean-Paul GAUZÈS related to 2007/0143(COD)
Plenary speeches (2)
Credit Rating Agencies - Reporting and documentation requirements in the case of merger and divisions - Insurance and reinsurance (Solvency II) (recast) (debate)
Credit Rating Agencies - Reporting and documentation requirements in the case of merger and divisions - Insurance and reinsurance (Solvency II) (recast) (debate)
Amendments (35)
Amendment 30 #
Proposal for a directive
Recital 23
Recital 23
(23) It is necessary to promote supervisory convergence not only in respect of supervisory tools but also in respect of supervisory practices. The Committee of European Insurance and Occupational Pensions Supervisors established by Commission Decision 2004/6/EC should play an important role in this respect and report regularly on the progress made. In order to fulfil its tasks of mediation and arbitrage in the event of conflicts among supervisory authorities within the colleges of supervisors, this Committee should be given a legal basis and personality under a new regulation to enter into force at the same time as this Directive.
Amendment 32 #
Proposal for a directive
Recital 35
Recital 35
(35) The supervisory regime should provide for a risk-sensitive requirement, which is based on a prospective calculation to ensure accurate and timely intervention by supervisory authorities (the Solvency Capital Requirement), and a minimum level of security below which the amount of financial resources should not fall (the Minimum Capital Requirement). The Minimum Capital Requirement should be calculated in a clear and simple manner, and in such a way as to ensure that the calculation can be audited. It should correspond to an amount of eligible basic own funds below which policyholders and beneficiaries would be exposed to an unacceptable level of risk if insurance and reinsurance undertakings were allowed to continue their operations. The Minimum Capital Requirement should be linked to the Solvency Capital Requirement as a percentage thereof, corresponding to a confidence level in the range of 80% to 90% over a one-year period. Both capital requirements should be harmonized throughout the Community in order to achieve a uniform level of protection for policyholders.
Amendment 35 #
Proposal for a directive
Recital 95 a (new)
Recital 95 a (new)
(95a) Given the increasingly cross-border nature of insurance business, it is necessary to work on the functioning of insurance guarantee throughout Europe, taking account of the supervision structures. This work in progress will be done outside the scope of this Directive, since new solvency requirements will by themselves offer a high level of harmonised protection for policyholders.
Amendment 40 #
Proposal for a directive
Article 127 – paragraph 1 – introductory part
Article 127 – paragraph 1 – introductory part
1. The Minimum Capital Requirement shall be calibrated as a percentage of technical provisions based on 33% of the last Solvency Capital Requirement approved by the supervisor, corresponding to a confidence level of 80% over a one- year period. In addition, it shall be calculated in accordance with the following principles:
Amendment 41 #
Proposal for a directive
Article 127 – paragraph 1 – point c
Article 127 – paragraph 1 – point c
Amendment 42 #
Proposal for a directive
Article 127 – paragraph 2
Article 127 – paragraph 2
2. Insurance and reinsurance undertakings shall calculate the Minimum Capital Requirement at least quarterannually and report the results of that calculation to supervisory authorities.
Amendment 43 #
Proposal for a directive
Article 127 – paragraph 2 a (new)
Article 127 – paragraph 2 a (new)
2a. The supervisory authorities shall have the right to request that they be provided with the Minimum Capital Requirement calculations more frequently, but not more frequently than each quarter.
Amendment 47 #
Proposal for a directive
Article 130 – paragraph 4 – subparagraph 5 a (new)
Article 130 – paragraph 4 – subparagraph 5 a (new)
Supervisors may take account of the effects on asset management of voluntary codes of conduct and transparency adhered to by the relevant institutions dealing in unregulated or alternative investment instruments.
Amendment 56 #
Proposal for a directive
Article 304 – paragraph 3 a (new)
Article 304 – paragraph 3 a (new)
3a. Notwithstanding paragraph 1 and having regard to the decision-making procedure provided for by recital 23 and Article 251(4), the Committee of European Insurance and Occupational Pensions Supervisors shall be given legal personality in a regulation to enter into force at the same time as this Directive.
Amendment 91 #
Proposal for a directive
Recital 36
Recital 36
(36) The Solvency Capital Requirement should reflect a level of eligible own funds that enables insurance and reinsurance undertakings to absorb significant losses and that gives reasonable assurance to policyholders and beneficiaries that payments will be made as they fall due. In this respect, an appropriate balance between risk sensitivity and stability of the solvency capital requirement should be reached in order better to serve policyholders' needs and enhance their protection. Thus, the calibration of the capital charge shall properly take into account the long holding period of assets that is typical in insurance and pension business, in particular for certain types of assets, such as equity and real estate, and shall not discourage undertakings from holding participations in financial and non-financial firms and having own funds in excess of technical provisions and Solvency Capital Requirement.
Amendment 104 #
Proposal for a directive
Recital 64 a (new)
Recital 64 a (new)
(64a) According to their national law, mutual companies, mutual associations and provident societies are able to come close to another through mergers or the constitution of groups. These groups are not constituted with capital ties but through formalized long-lasting financial relationships that guarantee a financial solidarity between the affiliated companies. Therefore, in case a significant or dominant influence is exercised through these relationships, those relationships shall be supervised according to the same rules as the one provided for groups constituted through capital ties to achieve an adequate level of policyholders’ protection and a level- playing field between groups.
Amendment 119 #
Proposal for a directive
Recital 93 a (new)
Recital 93 a (new)
(93a) The key benefits of the application of Solvency II regime to all pension activities will be greater consumer confidence, enhanced and cost-effective policyholder protection and more innovative and competitive products. In the interest of a high level and harmonised protection of European citizens, with a modern principle based framework which will allow a real level playing field among pension providers across Europe and increased competition, the inclusion of pension funds in the Solvency II framework is particularly legitimate. References to Articles 27 and 28 of Directive 2002/83/EC in Article 17 of Directive 2003/41/EC should therefore be construed as references to this Directive in accordance with the correlation table. The other elements of Directive 2003/41/EC should be reviewed according to the principle of harmonisation with Solvency II before the entry into force of this Directive, including the appropriate quantitative impact studies.
Amendment 280 #
Proposal for a directive
Article 90 – paragraph 1
Article 90 – paragraph 1
Amendment 281 #
Proposal for a directive
Article 90 – paragraph 1
Article 90 – paragraph 1
Amendment 284 #
Proposal for a directive
Article 90 – paragraph 1 a (new)
Article 90 – paragraph 1 a (new)
The value of the surplus funds shall be assessed on the basis of the following: (a) the recoverability of such realised profits to absorb losses, taking account of the legal form of these surpluses, as well as any conditions and circumstances which would prevent the use of surplus funds; (a) any information on the authorisation of the use of such realised profits by the supervisory authority, to the extent that information can be reliably used to assess the expected use of the realised profits.
Amendment 285 #
Proposal for a directive
Article 90 – paragraph 1 b (new)
Article 90 – paragraph 1 b (new)
The Commission shall adopt implementing measures laying down the method to be used when calculating the amount of realised profits that may cover losses subject to the approval of the supervisory authority.
Amendment 286 #
Proposal for a directive
Article 90 – paragraph 1 c (new)
Article 90 – paragraph 1 c (new)
The Commission shall adopt implementing measures laying down the method to be used when assessing the amount of profit that is available to absorb losses.
Amendment 287 #
Proposal for a directive
Article 90 – paragraph 1 d (new)
Article 90 – paragraph 1 d (new)
Those measures, designed to amend non- essential elements of this Directive by supplementing it with new non-essential elements, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 304(3).
Amendment 299 #
Proposal for a directive
Article 96 – point 1
Article 96 – point 1
(1) surplus funds falling under Article 90 shall be classified in Tier 12;
Amendment 303 #
Proposal for a directive
Article 96 – point 2
Article 96 – point 2
(2) letters of credit and guarantees, provided by credit institutions authorised in accordance with Directive 2006/48/EC, andrespecting a minimum maturity from issue date and, if there is a potential conflict of interest between managers that have to exercise those letters of credit or guarantees and the entities whose default the credit institutions are covering, held in trust for the benefit of insurance creditors by an independent trustee shall be classified in Tier 2;
Amendment 305 #
Proposal for a directive
Article 96 – point 3
Article 96 – point 3
(3) any future claims which Protection and Indemnity Associationsan insurance undertaking may have against their membits policyholders by way of a call for supplementary contributions, within the financial yearprovided that the amount of these potential claims has been previously either notified individually to policyholders or included in the status of the undertaking and that in case of supplementary call such potential claims will have to be paid by those policyholders within the next 12 months, shall be classified in Tier 2.
Amendment 308 #
Proposal for a directive
Article 96 – point 3 a (new)
Article 96 – point 3 a (new)
(3a) at least half of the future claims which a mutual or mutual-type association with variable contributions may have against its members, that do not fall under point 3, by way of a call for supplementary contribution, within the financial year concerned shall be classified in Tier 2.
Amendment 312 #
Proposal for a directive
Article 97 – paragraph 1 – subparagraph 1 – point c
Article 97 – paragraph 1 – subparagraph 1 – point c
(c) a list of own fund items, including those referred to in Article 96, deemed to meet the criteria, set out in Article 94 and in point (b) of this paragraph, which contains for each own fund item a precise description of the features which determined its classification;
Amendment 356 #
Proposal for a directive
Article 105 – paragraph 4 – subparagraph 1
Article 105 – paragraph 4 – subparagraph 1
4. WherThe health insurance is pursued on a similar technical basis to that of life insurance as referred to in Article 204, the special health underwriting risk module shall reflect the risk arising from the underwriting of health insurance contracts, following from both the perils covered and the processes used in the conduct of business.
Amendment 360 #
Proposal for a directive
Article 105 – paragraph 4 – subparagraph 2 – points a to c
Article 105 – paragraph 4 – subparagraph 2 – points a to c
(a) the risk of loss, or of adverse changehealth long term sub-module, covering underwriting risk in the value ofalth insurance liabilities, resulting from changes in the level, trend, or volatility of the expenses incurred in servicing inthat is practised on a similar technical basis to that of life assurance oras reinsurance contracts (health expense risk); (b) the risk of loss, or of adverse change in the value of insurance liabilities, resulting from fluctuations in the timing, frequency and severity of insured events, and in the timing and amount of claim settlements at the time of provisioning (health premium and reserve risk); (c) the risk of loss, or of advferred to in Article 204; (b) the accident and health short-term sub-module, covering underwriting risk of short-term health and accident lines of business; (c) the workerse change in the value of insurance liabilities, resulting from the significantompensation sub-module, covering uncdertainty of pricing and provisioning assumptions related to outbreaks of major epidemics, as well as the unusual accumulation of risks under such extreme circumstances (health epidemic risk)writing risk in workers’ compensation lines of business.
Amendment 363 #
Proposal for a directive
Article 105 – paragraph 5 – subparagraph 1
Article 105 – paragraph 5 – subparagraph 1
5. The market risk module shall reflect the risk arising from the level or volatility of market prices of financial instruments which have an impact upon the value of the assets and liabilities of the undertaking. It shall properly reflect the structural mismatch between assets and liabilities, in particular with respect to the duration thereof.
Amendment 370 #
Proposal for a directive
Article 105 – paragraph 5 – subparagraph 2 a (new)
Article 105 – paragraph 5 – subparagraph 2 a (new)
The impact on the own funds of the changes in market price of equities and real estate shall be assessed taking into account the duration of liabilities. The equity (respectively property) risk sub- module is therefore calibrated on the Value-at-Risk of the return on equities (respectively real estate) for the time horizon of the liabilities, subject to the confidence level that is consistent with a confidence level of 99,5 % over a one-year period.
Amendment 375 #
Proposal for a directive
Article 105 – paragraph 5 – subparagraph 2 b (new)
Article 105 – paragraph 5 – subparagraph 2 b (new)
The equity (or property) risk sub-module shall be calculated using the Value-at- Risk of the annualised return on the equities (or annualised return on the property) subject to a confidence level of 99,5 % duly taking into account the holding period of equities (or property), consistently with the duration of liabilities, the amount of own funds in excess of technical provisions and Solvency Capital Requirement and the long-term nature of the investment in the case of participations.
Amendment 379 #
Proposal for a directive
Article 105 – paragraph 5 – subparagraph 2 c (new)
Article 105 – paragraph 5 – subparagraph 2 c (new)
Notwithstanding subparagraph 2b, insurance and reinsurance undertaking may assess the impact of the changes of market prices of equity (or property) by simulating a fixed shock in equity (or property) prices.
Amendment 505 #
Proposal for a directive
Article 210 – paragraph 2 a (new)
Article 210 – paragraph 2 a (new)
2a. For the purposes of this Title, any undertakings that have set up long-lasting financial relationships through a legal entity shall be deemed to be related undertaking and the legal entity as their participating undertaking, if the following conditions are met: (a) the setting-up or dissolution of such financial relationships are subject to prior approval of the supervisory authority of the Member State where the legal entity is situated; (b) in the opinion of the supervisory authority of the Member State where the legal entity is situated, the legal entity effectively exercises through such financial relationships a significant influence over thesundertakings concerned. In addition, where, in the opinion of the supervisory authority referred to in the first subparagraph, the legal entity effectively exercises a dominant influence over any of the undertakings in respect of which long-lasting financial relationships have been set up, those undertakings shall be deemed to be subsidiaries and the legal entity shall be deemed to be their parent undertaking.
Amendment 574 #
Proposal for a directive
Article 235 – paragraph 3
Article 235 – paragraph 3
3. In the absence of a joint decision between the supervisory authorities concerned within six monthsthree months of the date of receipt of the complete application by the group supervisor, the group supervisor shall make its own decision on the application. The decision shall be set out in a document containing the fully reasoned decision and shall take into account the views and reservations of the other supervisory authorities concerned expressed within a six months period. The decision shall be provided to the applicant and the other supervisory authorities concerned by the group supervisor. That decision shall be recognised as determinative and applied by trequest the CEIOPS, within a further eight weeks, to deliver its advice to all the supervisory authorities concerned. The group supervisor shall take a decision within one week of the transmission of the CEIOPS' advice, taking full account of that advice and of the views of the other supervisory authorities concerned. The group supervisor's decision shall be set out in a document containing full reasons, in particular concerning the way that CEOPS' advice and the advice and views of other supervisory authorities have been taken into account. The group supervisor shall provide its decision to the applicant and the other supervisory authorities concerned. The supervisory authorities concerned shall comply with the decision.
Amendment 613 #
Proposal for a directive
Article 236 – paragraph 4 – subparagraph 2
Article 236 – paragraph 4 – subparagraph 2
The group supervisor shall duly consider such advice before taking its final decision. The decision's final decision must take into account that advice fully. The decision, comprising full reasons and an explanation how that advice was taken into account, shall be subtransmitted to the subsidiary and the supervisory authority by the group supervisor.
Amendment 618 #
Proposal for a directive
Article 236 – paragraph 4 – subparagraph 3
Article 236 – paragraph 4 – subparagraph 3
Amendment 627 #
Proposal for a directive
Article 237 – paragraph 1 – subparagraph 2
Article 237 – paragraph 1 – subparagraph 2
Amendment 820 #
Proposal for a directive
Article 311 a (new)
Article 311 a (new)