EIOPA announced that DFSA has refused to grant Gefion Insurance A/S an extension of three months to the recovery period and has, therefore, withdrawn the company’s license as insurance company. DFSA informed the host national supervisory authorities, via the EIOPA Cross-Border Platform of Collaboration, about the supervisory actions taken toward Gefion Insurance. DFSA assessed that the application of Gefion Insurance did not provide sufficient evidence that the company would be able to meet the solvency capital requirement within the recovery period if an extension was granted. DFSA also published questions and answers that may be useful for policyholders of Gefion.
DFSA, on March 24, 2020, decided not to approve the recovery plan of Gefion Insurance because the recovery plan did not provide sufficient evidence that the company would be able to fulfill the solvency capital requirement within six months and, hence, be able to adequately protect the interests of the current and future policyholders. As the company did not meet the solvency capital requirement before the end of the recovery period, the company submitted an application for the three-month extension of the recovery period.
The Danish insurance company Gefion Insurance A/S was also authorized to do business in the services sector in Germany. Therefore, DFSA informed BaFin that it has withdrawn permission, from the insurance company Gefion Insurance A/S, to conduct business. Due to the country-of-residence principle, financial supervision of this insurer is the responsibility of the Danish insurance supervision, not of BaFin. Gefion Insurace A/S offers insurance through agents in Europe. The company primarily offers insurance to individuals and small and medium-size companies and focuses on specialty lines in the different countries. The agents are responsible for the underwriting and the administration of policies and claims.
Keywords: Europe, EU, Germany, Denmark, Insurance, Gefion Insurance, Insurance License, Solvency II, Solvency Capital Requirements, DFSA, BaFin, EIOPA
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.
The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.
MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.
PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.
EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.
EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.
EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.