DFSA Withdraws License of Gefion Insurance
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DFSA has refused to grant Gefion Insurance A/S an extension of three months to the recovery period and has, therefore, withdrawn the company’s license as insurance company.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 Therefore, DFSA informed BaFin that it has withdrawn permission, from the insurance company Gefion Insurance A/S, to conduct business.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.
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Keywords: Europe, EU, Germany, Denmark, Insurance, Gefion Insurance, Insurance License, Solvency II, Solvency Capital Requirements, DFSA, BaFin, EIOPA
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