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.