The European Insurance and Occupational Pensions Authority (EIOPA) has published its Guidelines on the Supervision of Branches of Third-Country Insurance Undertakings (the "Guidelines") relating to Articles 162 to 171 of the Solvency II Directive.
The Guidelines are intended to ensure that EU policyholders receive the same minimum level of protection, whether they buy their insurance from a European insurer or the European branch of a third-country insurer. The Guidelines only apply to the supervision of third-country branches carrying on insurance business. They do not apply to a third-country insurer that is only carrying on reinsurance business through its European branch even if it carries on direct insurance business through its head office or branches outside of the European Union.
The Guidelines cover the following areas:
- Authorisation (Guidelines 1-6)
- Supervisory powers, and communications with other supervisory authorities (Guidelines 7-16)
- Financial soundness of the branch (Guidelines 17-26)
- Governance and risk management (Guidelines 27-35)
- Disclosure (Guideline 36)
- Supervisory reporting (Guidelines 37-56)
- Transitional provisions (Guidelines 57-62)
EIOPA has asked all National Competent Authorities of the EU Member States to confirm whether they are complying, or intend to comply, with these Guidelines by the end of May 2016.
To view the Guidelines, please see here.