Home › Insurance › VAG (EN)

VAG (EN)

Insurance Supervision Act
VAG-EN · official text on Gesetze im Internet (German original) — English text is eucite.com's own translation

🇩🇪 Auf Deutsch lesen (original text)

This English text is a careful, terminology-researched translation prepared by eucite.com — not an official government translation. The German original linked above is the legally authoritative text.

Sections

Part 1 General Provisions

• Section 1 — Scope of application
• Section 2 — Public-law provident institutions
• Section 3 — Exceptions from the supervisory duty; power to issue a statutory instrument
• Section 4 — Determination of the supervisory duty
• Section 5 — Exemption from supervision
• Section 6 — Protection of designations
• Section 7 — Definitions
• Section 7a — Unreliability of sanctioned persons

Part 2 Provisions for direct insurance and reinsurance

Division 1 Authorisation and pursuit of business activity

• Section 8 — Authorisation; segregation of classes of insurance
• Section 9 — Application
• Section 10 — Scope of the authorisation
• Section 11 — Refusal and restriction of authorisation
• Section 12 — Amendments to the scheme of operations and to enterprise agreements
• Section 13 — Portfolio transfers
• Section 14 — Conversions
• Section 15 — Business unrelated to insurance
• Section 15a — Residential consumer credit agreements; power to issue a statutory instrument

Division 2 Qualifying holdings

• Section 16 — Holders of qualifying holdings
• Section 17 — Notification of qualifying holdings
• Section 18 — Prohibition or restriction of a qualifying holding
• Section 19 — Prohibition of the exercise of voting rights
• Section 20 — Examination of the holder
• Section 21 — Cooperation with the competent authorities in other member states or contracting states
• Section 22 — Power to issue a statutory instrument

Division 3 Business organisation

• Section 23 — General requirements for the business organisation; product approval process
• Section 24 — Requirements for persons who actually direct the undertaking or perform other key tasks
• Section 25 — Remuneration
• Section 26 — Risk management
• Section 27 — Own risk and solvency assessment
• Section 28 — External ratings
• Section 29 — Internal control system
• Section 30 — Internal audit
• Section 31 — Actuarial function
• Section 32 — Outsourcing
• Section 33 — Corresponding application of company-law provisions
• Section 34 — Power to issue a statutory instrument

Division 4 General reporting duties

• Section 35 — Duties of the auditor
• Section 35a — Determination of audit content
• Section 36 — Notification by the auditor to the supervisory authority; audit engagement
• Section 37 — Submission to the supervisory authority
• Section 38 — Accounting and audit of public-law insurance undertakings
• Section 39 — Power to issue a statutory instrument
• Section 40 — Solvency and financial condition report
• Section 41 — Non-publication of information
• Section 42 — Updating the solvency and financial condition report
• Section 43 — Information duties; calculations
• Section 43a — Reporting duties for the purpose of financial stability; power to issue a statutory instrument
• Section 44 — Forecast calculations
• Section 45 — Exemption from reporting duties
• Section 46 — Information duties towards the Federal Institute
• Section 47 — Notification duties

Division 5 Insurance distribution

• Section 48 — Requirements for insurance distribution
• Section 48a — Distribution remuneration and avoidance of conflicts of interest
• Section 48b — Prohibition of special remuneration and commission rebating
• Section 48c — Pass-through requirement
• Section 49 — Clawback liability
• Section 50 — Remuneration for the mediation of substitutive health insurance contracts
• Section 50a — Remuneration for the mediation of payment protection insurance
• Section 51 — Complaints about insurance intermediaries

Division 6 Prevention of money laundering and terrorist financing

• Section 52 — Obliged undertakings
• Section 53 — Internal safeguards
• Section 54 — General due diligence obligations in respect of the beneficiary
• Section 55 — Enhanced due diligence obligations
• Section 56

Division 7 Cross-border business activity

• Section 57 — Insurance business through branches or under freedom to provide services
• Section 58 — Establishment of a branch
• Section 59 — Commencement of business under freedom to provide services
• Section 60 — Statistical particulars on cross-border activities
• Section 61 — Business activity through a branch or under freedom to provide services
• Section 62 — Supervision of business activity
• Section 63 — Portfolio transfers
• Section 64 — Individual underwriters associated at Lloyd's
• Section 65 — Branch
• Section 66 — Freedom to provide services; co-insurance
• Section 66a — Corresponding application of the EU passporting regime
• Section 67 — Authorisation; segregation of classes of insurance
• Section 68 — Branch; general representative
• Section 69 — Application; procedure
• Section 70 — Relief for undertakings already authorised in another member state or contracting state
• Section 71 — Revocation of authorisation
• Section 72 — Insurance of domestic risks
• Section 73 — Portfolio transfer

Division 1 Solvency balance sheet

• Section 74 — Valuation of assets and liabilities
• Section 75 — General provisions on the establishment of technical provisions
• Section 76 — Value of the technical provisions
• Section 77 — Best estimate
• Section 78 — Risk margin
• Section 79 — General principles for calculating the technical provisions
• Section 80 — Matching adjustment to the relevant risk-free interest rate term structure
• Section 81 — Calculation of the matching adjustment
• Section 82 — Volatility adjustment
• Section 83 — Technical information to be taken into account
• Section 84 — Further matters to be taken into account in calculating the technical provisions
• Section 85 — Financial guarantees and contractual options in insurance contracts
• Section 86 — Amounts recoverable from reinsurance contracts and from special purpose vehicles
• Section 87 — Comparison against experience
• Section 88 — Powers of the supervisory authority in respect of technical provisions; power to issue a statutory instrument

Division 2 Solvency requirements

• Section 89 — Own funds
• Section 90 — Approval of ancillary own funds
• Section 91 — Classification of items of own funds
• Section 92 — Criteria for classification
• Section 93 — Classification of certain items of own funds
• Section 94 — Own funds to comply with the Solvency Capital Requirement
• Section 95 — Own funds to comply with the Minimum Capital Requirement
• Section 96 — Determination of the Solvency Capital Requirement
• Section 97 — Calculation of the Solvency Capital Requirement
• Section 98 — Frequency of calculation
• Section 99 — Structure of the standard formula
• Section 100 — Structure of the Basic Solvency Capital Requirement
• Section 101 — Non-life underwriting risk module
• Section 102 — Life underwriting risk module
• Section 103 — Health underwriting risk module
• Section 104 — Market risk module
• Section 105 — Counterparty default risk module
• Section 106 — Equity risk sub-module
• Section 107 — Capital requirement for operational risk
• Section 108 — Adjustment for the loss-absorbing capacity of technical provisions and deferred taxes
• Section 109 — Deviations from the standard formula
• Section 110 — Material deviations from the assumptions underlying the standard formula calculation
• Section 111 — Use of internal models
• Section 112 — Internal models in the form of partial models
• Section 113 — Responsibility of the management board; involvement of third parties
• Section 114 — Failure to meet the requirements for the internal model
• Section 115 — Use test
• Section 116 — Statistical quality standards for probability distribution forecasts
• Section 117 — Other statistical quality standards
• Section 118 — Calibration standards
• Section 119 — Profit and loss attribution
• Section 120 — Validation standards
• Section 121 — Documentation standards
• Section 122 — Determination of the Minimum Capital Requirement; power to issue a statutory instrument
• Section 123 — Calculation cycle; reporting duties

Division 3 Investments; tied assets

• Section 124 — Investment principles
• Section 125 — Tied assets
• Section 126 — Asset register
• Section 127 — Allocations to the tied assets
• Section 128 — Trustee for the tied assets
• Section 129 — Securing the tied assets
• Section 130 — Withdrawal from the tied assets
• Section 131 — Power to issue a statutory instrument

Division 4 Insurance undertakings in special situations

• Section 132 — Identification and notification of a deteriorating financial situation
• Section 133 — Inadequate level of technical provisions
• Section 134 — Non-compliance with the Solvency Capital Requirement
• Section 135 — Non-compliance with the Minimum Capital Requirement
• Section 136 — Recovery plan and financing plan
• Section 137 — Progressive deterioration of solvency

Division 1 Life insurance

• Section 138 — Premium calculation in life insurance; equal treatment
• Section 139 — Surplus participation
• Section 140 — Provision for premium refunds
• Section 141 — Appointed actuary in life insurance
• Section 142 — Trustee in life insurance
• Section 143 — Special notification duties in life insurance
• Section 144 — Information in occupational retirement provision
• Section 145 — Power to issue a statutory instrument

Division 2 Health insurance

• Section 146 — Substitutive health insurance
• Section 147 — Other health insurance
• Section 148 — Long-term care insurance
• Section 149 — Premium loading in substitutive health insurance
• Section 150 — Credit to the ageing provision; direct credit
• Section 151 — Surplus participation of the insured
• Section 152 — Standard tariff
• Section 153 — Emergency tariff
• Section 154 — Risk equalisation
• Section 155 — Premium changes
• Section 156 — Appointed actuary in health insurance
• Section 157 — Trustee in health insurance
• Section 158 — Special notification duties in health insurance; benefits under the standard and emergency tariffs
• Section 159 — Statistical data
• Section 160 — Power to issue a statutory instrument

Division 3 Other non-life insurance

• Section 161 — Accident insurance with premium refund
• Section 162 — Premium reserve for liability and accident annuities
• Section 163 — Claims representatives in motor vehicle liability insurance
• Section 164 — Claims handling in legal expenses insurance

Division 4 Reinsurance

• Section 165 — Reinsurance undertakings in run-off
• Section 166 — Portfolio transfers; conversions
• Section 167 — Finite reinsurance
• Section 168 — Insurance special purpose vehicles
• Section 169 — Reinsurance undertakings with their registered office in another member state or contracting state
• Section 170 — Power to issue a statutory instrument
• Section 171 — Legal capacity
• Section 172 — Application of commercial law provisions
• Section 173 — Articles of association
• Section 174 — Company name
• Section 175 — Liability for obligations
• Section 176 — Membership
• Section 177 — Equal treatment
• Section 178 — Founders' fund
• Section 179 — Contributions
• Section 180 — Contribution obligation of departed or newly joined members
• Section 181 — Prohibition of set-off
• Section 182 — Levying of apportionments and additional calls
• Section 183 — Notices
• Section 184 — Organs
• Section 185 — Registration with the commercial register
• Section 186 — Documents for the application
• Section 187 — Entry
• Section 188 — Management board
• Section 189 — Supervisory board
• Section 190 — Liability for damages
• Section 191 — Highest representative body
• Section 192 — Rights of minorities
• Section 193 — Loss reserve
• Section 194 — Use of the surplus
• Section 195 — Amendment of the articles of association
• Section 196 — Entry of the amendment of the articles of association
• Section 197 — Amendment of the general terms of insurance
• Section 198 — Dissolution of the association
• Section 199 — Dissolution resolution
• Section 200 — Portfolio transfer
• Section 201 — Loss of membership
• Section 202 — Registration of the dissolution
• Section 203 — Winding-up
• Section 204 — Winding-up procedure
• Section 205 — Redemption of the founders' fund; distribution of assets
• Section 206 — Continuation of the association
• Section 207 — Contribution obligation in insolvency proceedings
• Section 208 — Ranking of insolvency claims
• Section 209 — Additional calls and apportionments in insolvency proceedings
• Section 210 — Smaller associations

Division 1 Small insurance undertakings

• Section 211 — Small insurance undertakings
• Section 212 — Applicable provisions
• Section 213 — Solvency Capital Requirement and Minimum Capital Requirement
• Section 214 — Own funds
• Section 215 — Investment principles for tied assets
• Section 216 — Notification duties
• Section 217 — Power to issue a statutory instrument

Division 2 Death benefit funds

• Section 218 — Death benefit funds
• Section 219 — Applicable provisions
• Section 220 — Power to issue a statutory instrument

Part 3 Protection funds

• Section 221 — Compulsory membership
• Section 222 — Maintenance of the insurance contracts
• Section 223 — Protection funds
• Section 224 — Delegation to private entities
• Section 225 — Supervision
• Section 226 — Financing
• Section 227 — Accounting of the protection fund
• Section 228 — Duties of cooperation
• Section 229 — Exclusion
• Section 230 — Duty of confidentiality
• Section 231 — Means of coercion

Part 4 Occupational retirement provision institutions

Division 1 Distinction from other life insurance undertakings

• Section 232 — Pension funds
• Section 233 — Regulated pension funds
• Section 234 — Particular features of the business activity not relating to business organisation

Division 2 Particular features of business organisation

• Section 234a — Supplementary general provisions
• Section 234b — Special provisions on key functions
• Section 234c — Risk management
• Section 234d — Own-risk assessment
• Section 234e — Supplementary provisions on outsourcing

Division 3 Particular features relating to financial resources

• Section 234f — General
• Section 234g — Solvency Capital Requirement, Minimum Capital Requirement, and own funds
• Section 234h — Supplementary general investment principles
• Section 234i — Investment policy
• Section 234j — Special provisions on tied assets

Division 4 Information duties to prospective and current beneficiaries

• Section 234k — Requirements for information to be provided
• Section 234l — General information on a retirement provision scheme
• Section 234m — Information for prospective beneficiaries at the start of the pension relationship
• Section 234n — Information before joining a retirement provision scheme
• Section 234o — Information for prospective beneficiaries during the accrual phase
• Section 234p — Information for current beneficiaries

Division 5 Powers to issue statutory instruments

• Section 235 — Powers to issue statutory instruments on financial supervision
• Section 235a — Power to issue a statutory instrument on the information duties

Chapter 2 Pension Funds (Pensionsfonds)

• Section 236 — Pensionsfonds
• Section 237 — Applicable provisions
• Section 238 — Financial resources
• Section 239 — Capital investment
• Section 240 — Power to issue a statutory instrument

Chapter 3 Cross-border activity of institutions for occupational retirement provision and cross-border transfer of portfolios

• Section 241 — Cross-border activity
• Section 242 — Cross-border activity of pension funds and Pensionsfonds
• Section 243 — Cross-border activity of institutions whose home state is another member or contracting state
• Section 243a — Transfer of portfolios to a pension fund or a Pensionsfonds
• Section 243b — Transfer of portfolios to an institution whose home state is another member or contracting state
• Section 244

Part 4a Pure defined-contribution commitments in occupational retirement provision

• Section 244a — Scope
• Section 244b — Obligations
• Section 244c — Tied assets
• Section 244d — Power to issue a statutory instrument

Part 5 Groups

Chapter 1 Supervision of insurance undertakings in a group

• Section 245 — Scope of application of group supervision
• Section 246 — Scope of group supervision
• Section 247 — Ultimate parent undertaking at the level of the member or contracting states
• Section 248 — Ultimate parent undertaking at national level
• Section 249 — Parent undertakings covering several member or contracting states
• Section 250 — Monitoring of group solvency
• Section 251 — Frequency of calculation
• Section 252 — Determination of the method
• Section 253 — Taking into account the proportional share
• Section 254 — Exclusion of multiple use of eligible own funds
• Section 255 — Exclusion of intra-group creation of capital
• Section 256 — Related insurance undertakings
• Section 257 — Intermediate insurance holding companies
• Section 258 — Related insurance undertakings of a third country
• Section 259 — Related credit institutions, investment firms, and financial institutions
• Section 260 — Unavailability of the necessary information
• Section 261 — Consolidation method
• Section 262 — Internal model for the group
• Section 263 — Capital add-on for a group undertaking
• Section 264 — Capital add-on for the group
• Section 265 — Deduction and aggregation method
• Section 266 — Group solvency in the case of an insurance holding company or a mixed financial holding company
• Section 267 — Conditions for subsidiary undertakings of an insurance undertaking
• Section 268 — Supervision in the case of centralised risk management
• Section 269 — Determination of the Solvency Capital Requirement of the subsidiary undertaking
• Section 270 — Non-coverage of the capital requirements of the subsidiary undertaking
• Section 271 — End of the exemption for a subsidiary undertaking
• Section 272 — Subsidiary undertakings of an insurance holding company or a mixed financial holding company

Division 2 Risk concentration and intra-group transactions

• Section 273 — Monitoring of risk concentration
• Section 274 — Monitoring of intra-group transactions

Division 3 Business organisation, reporting duties

• Section 275 — Supervision of the governance system
• Section 276 — Mutual exchange of information
• Section 277 — Report on the solvency and financial condition of the group
• Section 278 — Group structure
• Section 279 — Competence for group supervision
• Section 280 — Determination of the group supervisory authority
• Section 281 — Tasks and powers of the group supervisory authority
• Section 282 — Exemption from reporting at group level
• Section 283 — College of supervisors
• Section 284 — Cooperation in group supervision
• Section 285 — Mutual consultation of supervisory authorities
• Section 286 — Cooperation in respect of related undertakings
• Section 287 — Enforcement measures

Chapter 4 Third countries

• Section 288 — Parent undertakings with their registered office in a third country
• Section 289 — Equivalence
• Section 290 — Absence of equivalence
• Section 291 — Level of supervision

Chapter 5 Insurance holding companies and mixed financial holding companies

• Section 292 — Intra-group transactions
• Section 293 — Supervision

Part 6 Supervision: tasks and general powers, organisation

Chapter 1 Tasks and general provisions

• Section 294 — Tasks
• Section 295 — Competent authority in relation to EU regulations
• Section 296 — Principle of proportionality
• Section 297 — Discretion
• Section 298 — General supervisory powers
• Section 299 — Extension of supervisory powers
• Section 300 — Amendment of the scheme of operations
• Section 301 — Capital add-on
• Section 302 — Prohibition of a participation
• Section 303 — Removal of persons with key functions, warning
• Section 303a — Prohibition on activity for natural persons
• Section 304 — Revocation of authorisation
• Section 305 — Questioning, duty to provide information
• Section 305a — Powers and measures against supervised contributors and users of indices within the meaning of Regulation (EU) 2016/1011
• Section 306 — Entering and searching premises; seizure
• Section 306a — Pursuit of unauthorised insurance business
• Section 306b — Account information system
• Section 307 — Special commissioner
• Section 308 — Unauthorised insurance business
• Section 308a — Measures against PRIIP manufacturers and PRIIP sellers
• Section 308b — Measures concerning the granting of residential real estate loans; power to issue a statutory instrument
• Section 308c — Measures in the event of breaches of Regulation (EU) 2017/2402
• Section 308d — Special powers under Regulation (EU) 2022/2554
• Section 309 — Duty of confidentiality
• Section 310 — Ancillary provisions; exclusion of suspensive effect
• Section 310a — Electronic transmission; power to issue a statutory instrument

Chapter 2 Protective measures

• Section 311 — Notification of insolvency
• Section 312 — Opening of insolvency proceedings
• Section 313 — Informing creditors
• Section 314 — Prohibition of payments; reduction of benefits
• Section 315 — Treatment of insurance claims
• Section 316 — Extinction of certain insurance contracts
• Section 317 — Curator in the event of insolvency

Chapter 3 Publications

• Section 318 — Publications
• Section 319 — Publication of measures
• Section 319a — Publication of measures and sanctions for breaches of Regulation (EU) 2015/2365, Regulation (EU) 2016/1011, Regulation (EU) 2017/2402, or Regulation (EU) 2022/2554

Division 1 Federal supervision

• Section 320 — Federal Financial Supervisory Authority
• Section 321 — Transfer of supervision to a Land supervisory authority
• Section 322 — Transfer of supervision to the Federal Institute
• Section 323 — Procedure
• Section 324 — Cooperation between the supervisory authorities
• Section 325 — Insurance Advisory Council

Division 2 Supervision within the European Economic Area

• Section 326 — General principles for cooperation between the supervisory authorities
• Section 327 — Cooperation in on-site examinations
• Section 328 — Service of documents
• Section 329 — Cooperation with the European Insurance and Occupational Pensions Authority
• Section 330 — Notifications to the European Commission

Part 7 Criminal and regulatory offence provisions

• Section 331 — Criminal provisions
• Section 332 — Regulatory offence provisions
• Section 333 — Competent administrative authority
• Section 334 — Involvement of the supervisory authority and notifications in criminal matters

Part 8 Transitional and final provisions

• Section 335 — Continuation of business operations
• Section 336 — Continued validity of approved schemes of operations in life insurance
• Section 337 — Trustee in health insurance
• Section 338 — Surcharge in health insurance
• Section 339 — Partial-portfolio provisions in accident insurance
• Section 340 — Grandfathering for reinsurance undertakings
• Section 341 — Report on solvency and financial condition
• Section 342 — Compliance with the Minimum Capital Requirement
• Section 343 — Discontinuation of business operations
• Section 344 — Time limits for reporting and disclosure duties
• Section 345 — Own funds
• Section 346
• Section 347 — Standard parameters
• Section 348 — Solvency Capital Requirement
• Section 349 — Internal partial group model
• Section 350 — Group provisions
• Section 351 — Risk-free interest rates
• Section 352 — Technical provisions
• Section 353 — Plan for the phasing-in of transitional measures for risk-free interest rates and technical provisions
• Section 354 — Review of long-term guarantees and measures on equity risk
• Section 355 — Decisions of the supervisory authority on the occasion of the entry into force of this Act
• Section 356 — Transitional provision on section 35(1), first sentence, points 5 to 8
• Section 357 — Transitional provision on the Financial Market Integrity Strengthening Act
• Section 358 — Transitional provision on the Act Supplementing and Amending the Provisions on the Equal Participation of Women in Leadership Positions in the Private Sector and in the Public Service
• Section 359 — Transitional provision on the Act on the Introduction of Virtual General Meetings of Stock Corporations and the Amendment of Cooperative, Insolvency, and Restructuring Law Provisions
• Section 360 — Transitional provision on the Financial Market Digitalisation Act