BaFin Consults on Business Organization Requirements of Small Insurers
BaFin launched consultation (17/2019) on a circular that provides guidance on minimum regulatory requirements for the "business organization of small insurance companies,” in accordance with Section 211 of the Insurance Supervision Act. This circular is based on the approach that the directors of a company have the overall responsibility for proper and effective governance of the company. The scope of this circular covers all primary insurance companies supervised by BaFin that fulfill the conditions set out in Section 211 of the Insurance Supervision Act. The closing date for the comment period on this consultation is December 08, 2019.
The key topics covered in the draft circular include proportionality, responsibility of management, significant risks, general business organization requirements, risk management, internal control framework, and spin-offs. The draft circular highlights that the principle of proportionality plays a significant role in the implementation of business organization requirements. On January 25, 2017, Circular 2/2017 on “Regulatory Minimum Requirements for the Business Organization of Insurance Companies” was published. The scope of Circular 2/2017 covered all companies to which the Solvency II Directive applies but it did not apply to the small insurance companies. However, the planned new circular will address the "business organization requirements" for these small insurance companies.
Related Links (in German)
Comment Due Date: December 08, 2019
Keywords: Europe, Germany, Insurance, Insurance Supervision Act, Proportionality, Governance, Operational Risk, Small Insurance Companies, BaFin
Related Articles
PRA and FPC Finalize Changes to Leverage Ratio Framework in UK
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
CFPB Proposes Rule on Small Business Lending Data Collection
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
PRA Decides to Maintain O-SII Buffers for Another Year
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
FSB Report Assesses Implementation of Recommendations on Stablecoins
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
APRA Updates Loan Serviceability Expectations for Home Lending
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
EBA and EIOPA Set Out Work Priorities for 2022
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
MFSA Issues Reporting Updates and Guidance for Banks
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
EC Publishes Decision on List of Equivalent Third Countries Under CRR
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC Rule on Contractual Recognition of Write-Down and Conversion Powers
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.
