Germany

Topic: Insurance

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German government makes preparations to pave the way for a transitional regime for the run-off of the German business of UK insurers and reinsurers in the case of a hard Brexit

The date on which the United Kingdom (UK) will leave the European Union (EU) is coming closer. Unless the Withdrawal Agreement is ratified by both the UK and the EU, the UK will become a “third country” under EU legislation on 30 March 2019 (Brexit date). Consequently, in the absence of a ratified Withdrawal Agreement … Continue Reading

Replacement of the Luxembourg Protocol with new IDD co-operation agreement

The European protocol governing the Cooperation of the Competent Authorities of the Members States of the European Union in Particular Concerning the Application of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on Insurance Mediation (more commonly referred to as the “Luxembourg Protocol”) has been replaced by an updated … Continue Reading

Delegated Regulation amending Solvency II to align with Securitisation Regulation published in OJ

 On 10 September 2018, there was published in the Official Journal of the  EU (OJ) Commission Delegated Regulation (EU) 2018/1221 of 1 June 2018 amending Delegated Regulation (EU) 2015/35 as regards the calculation of regulatory capital requirements for securitisations and simple, transparent and standardised securitisations held by insurance and reinsurance undertakings. The Delegated Regulation will … Continue Reading

BaFin says that insurers need to be prepared for substantial burdens in their implementation of the new German law transposing IDD

Insurers and other insurance distributors will face significant challenges while implementing the requirements of the German law transposing IDD. Impacts on distribution models, training requirements and increased duties and obligations in distribution will need to be considered. In addition, there are a number of compliance issues, such as conflicts of interest, cross-selling and considerations regarding … Continue Reading

German law transposing Insurance Distribution Directive (IDD) passed (in revised version) – final guidance on training requirements remains outstanding

The legislation transposing the IDD into German law has been passed (as resolved by the German Parliament on 28 June 2017 and by the Federal Council of Germany on 7 July 2017). One of many changes will be that the transposed IDD will be applicable to all insurance distributors (Versicherungsvertreiber), including insurers. In addition to … Continue Reading

Court decision: German aggregator websites need to improve its online information and advice as insurance broker (Higher Court of Munich decision)

A new decision by the Munich Higher Regional Court gives significant guidance for online insurance distribution activities which anticipates some of the new requirements under the Insurance Distribution Directive. The court held that aggregators such as Check24 have to better inform and advise their website users before they conclude an insurance contract online. In particular, … Continue Reading

Health Insurance: BaFin publishes new guidance note on setting up health insurance companies

On 10 March 2017 the German Financial Services Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) published a guidance note on setting up health insurance companies in Germany under the new provisions implementing Solvency II. In contrast to most other EU member states, German regulated private health insurers are not permitted to offer products of any other … Continue Reading

Greater outsourcing in German life insurance sector predicted following expected change to Criminal Code

The adoption of a draft law amending criminal law provisions protecting insurance related information will finally enable life insurers to make wider use of outsourcing by removing disclosure to service providers from the scope of Sec. 203 German Criminal Code (StGB) under certain conditions. In spite of some uncertainties, this is a major breakthrough and … Continue Reading

BaFin publishes guidance notice on the authorisation of insurance joint-stock companies for the pursuit of reinsurance business

On 1 March 2017 BaFin published an updated guidance notice on the authorisation of insurance joint-stock companies for the sole pursuit of reinsurance business within the Federal Republic of Germany. The guidance includes advice on (i) the formation under the Stock Corporation Act (Aktiengesetz), (ii) the business plan according to section 9 of the Insurance Supervision … Continue Reading

BaFin publishes consultation paper regarding the amendment of the Circular for the investment of guarantee assets

The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has published a consultation paper outlining amendments to the circular relating to the investment of guarantee assets of insurance companies (Kapitalanlagerundschreiben – the “Circular”). The Circular shall specify the German investment ordinance (Anlageverordnung – the “Investment Ordinance”) which has been effective since 22 April 2016 … Continue Reading

BaFin publishes interpretation circular regarding the requirements for capital market models for the valuation of technical provisions under Solvency II

The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has published an interpretation circular – which explains the requirements for capital market models for the valuation of technical provisions under Solvency II Directive.  The German implementation of the Directive’s provisions can found in s. 74 et seq. Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG). The … Continue Reading

BaFin has published an interpretative decision on some aspects regarding the conduct of reinsurance business in Germany by insurance undertakings situated in a third country

On its website, BaFin has published an interpretative decision on some aspects regarding the conduct of reinsurance business in Germany by insurance undertakings situated in a third country. The decision has the following background: Insurance undertakings (primary insurers and reinsurers) from third countries, i.e. countries that are not member states of the European Union or … Continue Reading

Interpretative decision of BaFin on insufficient funds to meet solvency capital requirement or minimum capital requirement

On its website, the BaFin has published an interpretative decision setting out the obligations of insurance companies if they fail or will probably fail to provide sufficient funds to meet the solvency capital requirement or the minimum capital requirement. The decision was published in view of the stricter requirements imposed by the new supervisory regime … Continue Reading
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