Exemption from reporting duties

(1) Where reports are required to be submitted to the supervisory authority more than once a year under delegated acts pursuant to Article 35(9) and implementing technical standards pursuant to Article 35(10) of Directive 2009/138/EC, the supervisory authority may exempt insurance undertakings, wholly or in part, from that reporting duty where 1. the transmission of that information would, in relation to the nature, scale, and complexity of the risks associated with the business, involve an excessive burden, and 2. the information is submitted at least once a year. An exemption is excluded in the case of quarterly reporting for the calculation of the Minimum Capital Requirement under section 123(1), first sentence. An exemption is further excluded where the insurance undertaking belongs to a group within the meaning of section 7, point 13, unless the undertaking demonstrates that regular sub-annual reporting is not appropriate having regard to the nature, scale, and complexity of the risks associated with the group's business.
(2) The supervisory authority may exempt insurance undertakings, wholly or in part, from regular reporting under delegated acts pursuant to Article 35(9) or implementing technical standards pursuant to Article 35(10) of Directive 2009/138/EC, where 1. the transmission of the information concerned would, having regard to the nature, scale, and complexity of the risks associated with the undertaking's business, involve an excessive burden, 2. the transmission of the information concerned is not necessary for effective supervision of the undertaking, 3. the exemption does not run counter to the stability of the financial systems concerned in the Union, and 4. the undertaking is able to transmit the information without delay upon request. An exemption is excluded where the insurance undertaking belongs to a group within the meaning of section 7, point 13, unless the undertaking demonstrates that regular sub-annual reporting is not appropriate, having regard to the nature, scale, and complexity of the risks associated with the group's business and taking into account the objective of financial stability.
(3) The proportion of all insurance undertakings within the non-life insurance market that are exempted from reporting duties under subsections (1) and (2) may not, in either case, exceed a market share of 20 percent. The same applies to the proportion of all insurance undertakings within the life insurance market. The market share is to be determined, for the non-life insurance market, on the basis of gross premiums written, and, for the life insurance market, on the basis of gross technical provisions.
(4) In exempting undertakings, the supervisory authority gives priority to the undertakings with the smallest market shares.
(5) In examining whether the burden of transmitting information would be excessive in relation to the nature, scale, and complexity of the undertaking's risks, the supervisory authority takes into account at least the following criteria: 1. the volume of the undertaking's premiums, technical provisions, and assets, 2. the volatility of the insurance benefits covered by the undertaking, 3. the market risks arising from the undertaking's investments, 4. the level of risk concentrations, 5. the total number of classes of insurance for which authorisation has been granted, 6. the potential effects of the management of the undertaking's assets on financial stability, 7. the undertaking's systems and structures for transmitting information for supervisory purposes, and the written policies named in section 29(4), 8. the appropriateness of the undertaking's governance system, 9. the level of own funds to comply with the Solvency Capital Requirement and the Minimum Capital Requirement, and 10. whether the undertaking is a captive insurance undertaking that covers only risks associated with the industrial or commercial group to which it belongs.