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Solvency II Directive

Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)
32009L0138 · official text on EUR-Lex

Articles

Chapter I Subject matter, scope and definitions

Section 1 Subject matter and scope

• Article 1 — Subject matter
• Article 2 — Scope

Section 2 Exclusions from scope

• Article 3 — Statutory systems
• Article 4 — Exclusion from scope due to size
• Article 5 — Operations
• Article 6 — Assistance
• Article 7 — Mutual undertakings
• Article 8 — Institutions
• Article 9 — Operations and activities
• Article 10 — Organisations, undertakings and institutions
• Article 11 — Reinsurance
• Article 12 — Reinsurance undertakings closing their activity

Section 3 Definitions

• Article 13 — Definitions

Chapter II Taking-up of business

• Article 14 — Principle of authorisation
• Article 15 — Scope of authorisation
• Article 16 — Ancillary risks
• Article 17 — Legal form of the insurance or reinsurance undertaking
• Article 18 — Conditions for authorisation
• Article 19 — Close links
• Article 20 — Head office of insurance undertakings and reinsurance undertakings
• Article 21 — Policy conditions and scales of premiums
• Article 22 — Economic requirements of the market
• Article 23 — Scheme of operations
• Article 24 — Shareholders and members with qualifying holdings
• Article 25 — Refusal of authorisation
• Article 26 — Prior consultation of the authorities of other Member States

Chapter III Supervisory authorities and general rules

• Article 27 — Main objective of supervision
• Article 28 — Financial stability and pro-cyclicality
• Article 29 — General principles of supervision
• Article 30 — Supervisory authorities and scope of supervision
• Article 31 — Transparency and accountability
• Article 32 — Prohibition of refusal of reinsurance contracts or retrocession contracts
• Article 33 — Supervision of branches established in another Member State
• Article 34 — General supervisory powers
• Article 35 — Information to be provided for supervisory purposes
• Article 36 — Supervisory review process
• Article 37 — Capital add-on
• Article 38 — Supervision of outsourced functions and activities
• Article 39 — Transfer of portfolio

Chapter IV Conditions governing business

Section 1 Responsibility of the administrative, management or supervisory body

• Article 40 — Responsibility of the administrative, management or supervisory body

Section 2 System of governance

• Article 41 — General governance requirements
• Article 42 — Fit and proper requirements for persons who effectively run the undertaking or have other key functions
• Article 43 — Proof of good repute
• Article 44 — Risk management
• Article 45 — Own risk and solvency assessment
• Article 46 — Internal control
• Article 47 — Internal audit
• Article 48 — Actuarial function
• Article 49 — Outsourcing
• Article 50 — Implementing measures

Section 3 Public disclosure

• Article 51 — Report on solvency and financial condition: contents
• Article 52 — Information for and reports by CEIOPS
• Article 53 — Report on solvency and financial condition: applicable principles
• Article 54 — Report on solvency and financial condition: updates and additional voluntary information
• Article 55 — Report on solvency and financial condition: policy and approval
• Article 56 — Solvency and financial condition report: implementing measures

Section 4 Qualifying holdings

• Article 57 — Acquisitions
• Article 58 — Assessment period
• Article 59 — Assessment
• Article 60 — Acquisitions by regulated financial undertakings
• Article 61 — Information to the supervisory authority by the insurance or reinsurance undertaking
• Article 62 — Qualifying holdings, powers of the supervisory authority
• Article 63 — Voting rights

Section 5 Professional secrecy, exchange of information and promotion of supervisory convergence

• Article 64 — Professional secrecy
• Article 65 — Exchange of information between supervisory authorities of Member States
• Article 66 — Cooperation agreements with third countries
• Article 67 — Use of confidential information
• Article 68 — Exchange of information with other authorities
• Article 69 — Disclosure of information to government administrations responsible for financial legislation
• Article 70 — Transmission of information to central banks and monetary authorities
• Article 71 — Supervisory convergence

Section 6 Duties of auditors

• Article 72 — Duties of auditors

Chapter V Pursuit of life and non-life insurance activity

• Article 73 — Pursuit of life and non-life insurance activity
• Article 74 — Separation of life and non-life insurance management

Chapter VI Rules relating to the valuation of assets and liabilities, technical provisions, own funds, Solvency Capital Requirement, Minimum Capital Requirement and investment rules

Section 1 Valuation of assets and liabilities

• Article 75 — Valuation of assets and liabilities

Section 2 Rules relating to technical provisions

• Article 76 — General provisions
• Article 77 — Calculation of technical provisions
• Article 78 — Other elements to be taken into account in the calculation of technical provisions
• Article 79 — Valuation of financial guarantees and contractual options included in insurance and reinsurance contracts
• Article 80 — Segmentation
• Article 81 — Recoverables from reinsurance contracts and special purpose vehicles
• Article 82 — Data quality and application of approximations, including case-by-case approaches, for technical provisions
• Article 83 — Comparison against experience
• Article 84 — Appropriateness of the level of technical provisions
• Article 85 — Increase of technical provisions
• Article 86 — Implementing measures

Section 3 Own funds

• Article 87 — Own funds
• Article 88 — Basic own funds
• Article 89 — Ancillary own funds
• Article 90 — Supervisory approval of ancillary own funds
• Article 91 — Surplus funds
• Article 92 — Implementing measures
• Article 93 — Characteristics and features used to classify own funds into tiers
• Article 94 — Main criteria for the classification into tiers
• Article 95 — Classification of own funds into tiers
• Article 96 — Classification of specific insurance own-fund items
• Article 97 — Implementing measures
• Article 98 — Eligibility and limits applicable to Tiers 1, 2 and 3
• Article 99 — Implementing measures

Section 4 Solvency capital requirement

• Article 100 — General provisions
• Article 101 — Calculation of the Solvency Capital Requirement
• Article 102 — Frequency of calculation
• Article 103 — Structure of the standard formula
• Article 104 — Design of the Basic Solvency Capital Requirement
• Article 105 — Calculation of the Basic Solvency Capital Requirement
• Article 106 — Calculation of the equity risk sub-module: symmetric adjustment mechanism
• Article 107 — Capital requirement for operational risk
• Article 108 — Adjustment for the loss-absorbing capacity of technical provisions and deferred taxes
• Article 109 — Simplifications in the standard formula
• Article 110 — Significant deviations from the assumptions underlying the standard formula calculation
• Article 111 — Implementing measures
• Article 112 — General provisions for the approval of full and partial internal models
• Article 113 — Specific provisions for the approval of partial internal models
• Article 114 — Implementing measures
• Article 115 — Policy for changing the full and partial internal models
• Article 116 — Responsibilities of the administrative, management or supervisory bodies
• Article 117 — Reversion to the standard formula
• Article 118 — Non-compliance of the internal model
• Article 119 — Significant deviations from the assumptions underlying the standard formula calculation
• Article 120 — Use test
• Article 121 — Statistical quality standards
• Article 122 — Calibration standards
• Article 123 — Profit and loss attribution
• Article 124 — Validation standards
• Article 125 — Documentation standards
• Article 126 — External models and data
• Article 127 — Implementing measures

Section 5 Minimum capital requirement

• Article 128 — General provisions
• Article 129 — Calculation of the Minimum Capital Requirement
• Article 130 — Implementing measures
• Article 131 — Transitional arrangements regarding compliance with the Minimum Capital Requirement

Section 6 Investments

• Article 132 — Prudent person principle
• Article 133 — Freedom of investment
• Article 134 — Localisation of assets and prohibition of pledging of assets
• Article 135 — Implementing measures

Chapter VII Insurance and reinsurance undertakings in difficulty or in an irregular situation

• Article 136 — Identification and notification of deteriorating financial conditions by the insurance and reinsurance undertaking
• Article 137 — Non-Compliance with technical provisions
• Article 138 — Non-Compliance with the Solvency Capital Requirement
• Article 139 — Non-Compliance with the Minimum Capital Requirement
• Article 140 — Prohibition of free disposal of assets located within the territory of a Member State
• Article 141 — Supervisory powers in deteriorating financial conditions
• Article 142 — Recovery plan and finance scheme
• Article 143 — Implementing measures
• Article 144 — Withdrawal of authorisation

Chapter VIII Right of establishment and freedom to provide services

Section 1 Establishment by insurance undertakings

• Article 145 — Conditions for branch establishment
• Article 146 — Communication of information

Section 2 Freedom to provide services: by insurance undertakings

• Article 147 — Prior notification to the home Member State
• Article 148 — Notification by the home Member State
• Article 149 — Changes in the nature of the risks or commitments
• Article 150 — Compulsory insurance on third party motor vehicle liability
• Article 151 — Non-discrimination of persons pursuing claims
• Article 152 — Representative

Section 3 Competencies of the supervisory authorities of the host member state

• Article 153 — Language
• Article 154 — Prior notification and prior approval
• Article 155 — Insurance undertakings not complying with the legal provisions
• Article 156 — Advertising
• Article 157 — Taxes on premiums
• Article 158 — Reinsurance undertakings not complying with the legal provisions

Section 4 Statistical information

• Article 159 — Statistical information on cross-border activities

Section 5 Treatment of contracts of branches in winding-up proceedings

• Article 160 — Winding-up of insurance undertakings
• Article 161 — Winding-up of reinsurance undertakings

Chapter IX Branches established within the community and belonging to insurance or reinsurance undertakings with head offices situated outside the community

Section 1 Taking-up of business

• Article 162 — Principle of authorisation and conditions
• Article 163 — Scheme of operations of the branch
• Article 164 — Transfer of portfolio
• Article 165 — Technical provisions
• Article 166 — Solvency Capital Requirement and Minimum Capital Requirement
• Article 167 — Advantages to undertakings authorised in more than one Member State
• Article 168 — Accounting, prudential and statistical information and undertakings in difficulty
• Article 169 — Separation of non-life and life business
• Article 170 — Withdrawal of authorisation for undertakings authorised in more than one Member State
• Article 171 — Agreements with third countries

Section 2 Reinsurance

• Article 172 — Equivalence
• Article 173 — Prohibition of pledging of assets
• Article 174 — Principle and conditions for conducting reinsurance activity
• Article 175 — Agreements with third countries

Chapter X Subsidiaries of insurance and reinsurance undertakings governed by the laws of a third country and acquisitions of holdings by such undertakings

• Article 176 — Information from Member States to the Commission
• Article 177 — Third-country treatment of Community insurance and reinsurance undertakings

Chapter I Applicable law and conditions of direct insurance contracts

Section 1 Applicable law

• Article 178 — Applicable Law

Section 2 Compulsory insurance

• Article 179 — Related obligations

Section 3 General good

• Article 180 — General good

Section 4 Conditions of insurance contracts and scales of premiums

• Article 181 — Non-life insurance
• Article 182 — Life insurance

Section 5 Information for policy holders

• Article 183 — General Information for policy holders
• Article 184 — Additional information in the case of non-life insurance offered under the right of establishment or the freedom to provide services
• Article 185 — Information for policy holders
• Article 186 — Cancellation period

Chapter II Provisions specific to non-life insurance

Section 1 General provisions

• Article 187 — Policy Conditions
• Article 188 — Abolition of monopolies
• Article 189 — Participation in national guarantee schemes

Section 2 Community co-insurance

• Article 190 — Community co-insurance operations
• Article 191 — Participation in Community co-insurance
• Article 192 — Technical provisions
• Article 193 — Statistical data
• Article 194 — Treatment of co-insurance contracts in winding-up proceedings
• Article 195 — Exchange of information between supervisory authorities
• Article 196 — Cooperation on implementation

Section 3 Assistance

• Article 197 — Activities similar to tourist assistance

Section 4 Legal expenses insurance

• Article 198 — Scope of this Section
• Article 199 — Separate contracts
• Article 200 — Management of claims
• Article 201 — Free choice of lawyer
• Article 202 — Exception to the free choice of lawyer
• Article 203 — Arbitration
• Article 204 — Conflict of interest
• Article 205 — Abolition of specialisation of legal expenses insurance

Section 5 Health insurance

• Article 206 — Health insurance as an alternative to social security

Section 6 Insurance against accidents at work

• Article 207 — Compulsory insurance against accidents at work

Chapter III Provisions specific to life insurance

• Article 208 — Prohibition on compulsory ceding of part of underwriting
• Article 209 — Premiums for new business

Chapter IV Rules specific to reinsurance

• Article 210 — Finite reinsurance
• Article 211 — Special purpose vehicles

Chapter I Group supervision: definitions, cases of application, scope and levels

Section 1 Definitions

• Article 212 — Definitions

Section 2 Cases of application and scope

• Article 213 — Cases of application of group supervision
• Article 214 — Scope of group supervision

Section 3 Levels

• Article 215 — Ultimate parent undertaking at Community level
• Article 216 — Ultimate parent undertaking at national level
• Article 217 — Parent undertaking covering several Member States

Chapter II Financial position

Section 1 Group solvency

• Article 218 — Supervision of group solvency
• Article 219 — Frequency of calculation
• Article 220 — Choice of method
• Article 221 — Inclusion of proportional share
• Article 222 — Elimination of double use of eligible own funds
• Article 223 — Elimination of the intra-group creation of capital
• Article 224 — Valuation
• Article 225 — Related insurance and reinsurance undertakings
• Article 226 — Intermediate insurance holding companies
• Article 227 — Related third-country insurance and reinsurance undertakings
• Article 228 — Related credit institutions, investment firms and financial institutions
• Article 229 — Non-availability of the necessary information
• Article 230 — Method 1 (Default method): Accounting consolidation-based method
• Article 231 — Group internal model
• Article 232 — Group capital add-on
• Article 233 — Method 2 (Alternative method): Deduction and aggregation method
• Article 234 — Implementing measures
• Article 235 — Group solvency of an insurance holding company
• Article 236 — Subsidiaries of an insurance or reinsurance undertaking: conditions
• Article 237 — Subsidiaries of an insurance or reinsurance undertaking: decision on the application
• Article 238 — Subsidiaries of an insurance or reinsurance undertaking: determination of the Solvency Capital Requirement
• Article 239 — Subsidiaries of an insurance or reinsurance undertaking: non-compliance with the Solvency and Minimum Capital Requirements
• Article 240 — Subsidiaries of an insurance or reinsurance undertaking: end of derogations for a subsidiary
• Article 241 — Subsidiaries of an insurance or reinsurance undertaking: implementing measures
• Article 242 — Review
• Article 243 — Subsidiaries of an insurance holding company

Section 2 Risk concentration and intra-group transactions

• Article 244 — Supervision of risk concentration
• Article 245 — Supervision of intra-group transactions

Section 3 Risk management and internal control

• Article 246 — Supervision of the system of governance

Chapter III Measures to facilitate group supervision

• Article 247 — Group Supervisor
• Article 248 — Rights and duties of the group supervisor and the other supervisors College of supervisors
• Article 249 — Cooperation and exchange of information between supervisory authorities
• Article 250 — Consultation between supervisory authorities
• Article 251 — Requests from the group supervisor to other supervisory authorities
• Article 252 — Cooperation with authorities responsible for credit institutions and investment firms
• Article 253 — Professional secrecy and confidentiality
• Article 254 — Access to information
• Article 255 — Verification of information
• Article 256 — Group solvency and financial condition report
• Article 257 — Administrative, management or supervisory body of insurance holding companies
• Article 258 — Enforcement measures
• Article 259 — Reporting of CEIOPS

Chapter IV Third countries

• Article 260 — Parent undertakings outside the Community: verification of equivalence
• Article 261 — Parent undertakings outside the Community: equivalence
• Article 262 — Parent undertakings outside the Community: absence of equivalence
• Article 263 — Parent undertakings outside the Community: levels
• Article 264 — Cooperation with third-country supervisory authorities

Chapter V Mixed-activity insurance holding companies

• Article 265 — Intra-group transactions
• Article 266 — Cooperation with third countries

Chapter I Scope and definitions

• Article 267 — Scope of this Title
• Article 268 — Definitions

Chapter II Reorganisation measures

• Article 269 — Adoption of reorganisation measures applicable law
• Article 270 — Information to the supervisory authorities
• Article 271 — Publication of decisions on reorganisation measures
• Article 272 — Information to known creditors right to lodge claims

Chapter III Winding-up proceedings

• Article 273 — Opening of winding-up proceedings information to the supervisory authorities
• Article 274 — Applicable law
• Article 275 — Treatment of insurance claims
• Article 276 — Special register
• Article 277 — Subrogation to a guarantee scheme
• Article 278 — Representation of preferential claims by assets
• Article 279 — Withdrawal of the authorisation
• Article 280 — Publication of decisions on winding-up proceedings
• Article 281 — Information to known creditors
• Article 282 — Right to lodge claims
• Article 283 — Languages and form
• Article 284 — Regular information to the creditors

Chapter IV Common provisions

• Article 285 — Effects on certain contracts and rights
• Article 286 — Rights in rem of third parties
• Article 287 — Reservation of title
• Article 288 — Set-off
• Article 289 — Regulated markets
• Article 290 — Detrimental acts
• Article 291 — Protection of third-party purchasers
• Article 292 — Lawsuits pending
• Article 293 — Administrators and liquidators
• Article 294 — Registration in a public register
• Article 295 — Professional secrecy
• Article 296 — Treatment of branches of third-country insurance undertakings
• Article 297 — Right to apply to the courts
• Article 298 — Cooperation between the Member States and the Commission
• Article 299 — Euro
• Article 300 — Revision of amounts expressed in euro
• Article 301 — Committee procedure
• Article 302 — Notifications submitted prior to entry into force of the laws, regulations and administrative provisions necessary to comply with Articles 57 to 63
• Article 303 — Amendments to Directive 2003/41/EC
• Article 304 — Duration-based equity risk sub-module

Chapter I Transitional provisions

Section 1 Insurance

• Article 305 — Derogations and abolition of restrictive measures
• Article 306 — Rights acquired by existing branches and insurance undertakings

Section 2 Reinsurance

• Article 307 — Transitional period for Articles 57(3) and 60(6) of Directive 2005/68/EC
• Article 308 — Right acquired by existing reinsurance undertakings

Chapter II Final provisions

• Article 309 — Transposition
• Article 310 — Repeal
• Article 311 — Entry into force
• Article 312 — Addressees