Insurance and reinsurance—European Union—Q&A guide

The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:

  • Insurance and reinsurance—European Union—Q&A guide
  • 1. Identify the regulatory agencies responsible for regulating insurance and reinsurance companies.
  • 2. What are the requirements for formation and licensing of new insurance and reinsurance companies?
  • 3. What licences, authorisations or qualifications are required for insurance and reinsurance companies to conduct business?
  • 4. What are the minimum qualification requirements for officers and directors of insurance and reinsurance companies?
  • 5. What are the capital and surplus requirements for insurance and reinsurance companies?
  • 6. What are the requirements with respect to reserves maintained by insurance and reinsurance companies?
  • 7. What are the regulatory requirements with respect to insurance products offered for sale? Are some products regulated by multiple agencies?
  • 8. What are the frequency, types and scope of financial, market conduct or other periodic examinations of insurance and reinsurance companies?
  • 9. What are the rules on the kinds and amounts of investments that insurance and reinsurance companies may make?
  • More...

Insurance and reinsurance—European Union—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to insurance and reinsurance in European Union published as part of the Lexology Getting the Deal Through series by Law Business Research (published: August 2021).

Authors: CMS Reich-Rohrwig Hainz—Thomas Böhm

1. Identify the regulatory agencies responsible for regulating insurance and reinsurance companies.

Regulation (EU) No. 1094/2010 established the European Insurance and Occupational Pensions Authority. The authority acts within the powers conferred by this regulation and within the scope of several EU directives, including all directives, regulations and decisions based on those acts and of any further legally binding EU Act that confers tasks on the authority.

At a national level, the government bodies regulating the (re)insurance industry are the national supervisory authorities in each respective EU member state. The extent of their powers is determined by Directive 2009/138/EC (Solvency II) and national insurance supervisory law.

2. What are the requirements for formation and licensing of new insurance and reinsurance companies?

The exact requirements are determined by the national law of the respective EU member state. Following Solvency II, every undertaking for which authorisation is sought must adopt one of the legal forms of life and non-life insurers, as well as reinsurers, as set out in Annex III of the Solvency II Directive, depending on the EU member state in which authorisation is sought. The most common structure is

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