Insurance: Supplementary supervision of insurance undertakings in an insurance group - common position adopted by the Council on the proposed Directive

United Kingdom
The Council adopted, on 30 March 1998, its common position concerning the proposed directive on supplementary supervision of insurance undertakings in an insurance group.

Under the proposal, insurance supervisory authorities would be given more effective means of assessing the actual solvency of an insurance undertaking belonging to a group, with a view to increasing protection for policy holders.

The proposal specifies the undertakings that are subject to supplementary supervision and the scope of such supervision. It goes on to establish which intra-group transactions are to be supervised and provides for an adjusted solvency calculation. Finally, the proposal defines the specific supplementary supervision for insurance undertakings which are subsidiaries of an insurance holding company, a reinsurance undertaking or a third country insurance undertaking.

The proposal does not impose any additional capital requirements on insurance undertakings, reinsurance undertakings or insurance holding companies.