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Whistleblower-System

Supervisory disclosure

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The target of supervisory disclosure is to facilitate a uniform standard of transparency and responsibility of supervisory authorities. Publicised information should be easily accessible and comparable. For this reason, corresponding legal requirements that have to be adhered to by the FMA were created under Solvency II.

The disclosure obligations for the FMA are defined in Article 256 of the Insurance Supervision Act 2016 (VAG 2016 – Versicherungsaufsichtsgesetz 2016) in which the provisions of the Solvency II Directive (Directive 2009/138/EC) are transposed. In addition, transparency provisions are clarified in Articles 316 and 317 of the Delegated Regulation (EU) 2015/35 as well as Implementing Regulation (EU) 2015/2451 .

In order to comply with these requirements, the FMA hereby discloses information regarding the following topics:

Laws, administrative regulations and general guidance with regard to the requirement in accordance with Article 31 (2) point a) of Directive 2009/138/EC

Solvency II

Laws, administrative regulations and general guidance with regard to Solvency II are disclosed regarding the following topics:

Level 1: Solvency II Directive

Level 2: Delegated Acts

Level 2,5: Technical Standards

Level 3: EIOPA guidelines and recommendations

Level 4: Monitoring of harmonised implementation

 

Level 1: Solvency II Directive

Solvency II is based on EU Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance. This “Solvency II-Directive” replaces and complements 14 insurance directives and, for the first time, introduces solvency regulations, for the first time aligned with economic risks, for all EU member states.

In Austria the Solvency II-Directive is transposed into national law by the Insurance Supervision Act 2016 (VAG 2016), which entered into force on 1 January 2016.

  • Directive 2009/138/EC  on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)
    National transposition of Level 1:

National transposition of Level 1:

  • Insurance Supervision Act 2016 (VAG 2016)

Level 2: Delegated Acts

The following legal acts were adopted due to authorisations of the European Commission provided for by the Solvency II-Directive:

  • Commission Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance
  • Commission Delegated Regulation (EU) 2016/467 amending Commission Delegated Regulation (EU) 2015/35 concerning the calculation of regulatory capital requirements for several categories of assets held by insurance and reinsurance undertakings
  • Commission Delegated Decision (EU) 2016/310 on the equivalence of the solvency regime for insurance and reinsurance undertakings in force in Japan
  • Commission Delegated Decision (EU) 2015/2290 on the provisional equivalence of the solvency regimes in force in Australia, Bermuda, Brazil, Canada, Mexico and the United States and applicable to insurance and reinsurance undertakings with head offices in those countries
  • Commission Delegated Decision (EU) 2016/309 on the equivalence of the supervisory regime for insurance and reinsurance undertakings in force in Bermuda to the regime laid down in Directive 2009/138/EC of the European Parliament and of the Council and amending Comission Delegated Decision (EU) 2015/2290
  • Commission delegated decision (EU) 2015/1602 on the equivalence of the solvency and prudential regime for insurance and reinsurance undertakings in force in Switzerland

Level 2.5: Technical standards

Implementing technical standards developed by the European Insurance and Occupational Pensions Authority (EIOPA) are submitted to the European Commission and shall be adopted by means of regulations or decisions.

Pillar 1 (quantitative requirements)

  • Commission Implementing Regulation (EU) 2017/2015 – laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 30 September until 30 December 2017
  • Commission Implementing Regulation (EU) 2017/1421 – laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 30 June until 29 September 2017
  • Commission Implementing Regulation (EU) 2017/812 – laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 31 March until 29 June 2017
  • Commission Implementing Regulation (EU) 2017/309 – laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 31 December 2016 until 30 March 2017
  • Commission Implementing Regulation (EU) 2016/1976 – laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 30 September until 30 December 2016
  • Commission Implementing Regulation (EU) 2016/1630 – laying down implementing technical standards with regard to the procedures for the application of the transitional measure for the equity risk sub-module
  • Commission Implementing Regulation (EU) 2016/1376 – laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 30 June until 29 September 2016
  • Commission Implementing Regulation (EU) 2016/869 – laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 31 March until 29 June 2016
  • Commission Implementing Regulation (EU) 2016/165 – calculation of technical provisions and basic own funds for reporting with reference dates from 1 January until 30 March 2016
  • Commission Implementing Regulation (EU) 2015/2017 – laying down implementing technical standards with regard to the adjusted factors to calculate the capital requirement for currency risk for currencies pegged to the euro
  • Commission Implementing Regulation (EU) 2015/2016 – equity index for the symmetric adjustment of the standard equity capital Charge
  • Commission Implementing Regulation (EU) 2015/2013 – standard deviations in relation to health risk equalisation Systems
  • Commission Implementing Regulation (EU) 2015/2011 – lists of regional governments and local authorities, exposures to whom are to be treated as exposures to the central government
  • Commission Implementing Regulation (EU) 2015/500 – procedures to be followed for the supervisory approval of the application of a matching adjustment
  • Commission Implementing Regulation (EU) 2015/499 – procedures to be used for granting supervisory approval for the use of ancillary own-fund items
  • Commission Implementing Regulation (EU) 2015/498 – supervisory approval procedure to use undertaking-specific Parameters
  • Commission Implementing Regulation (EU) 2015/462 – procedures for supervisory approval to establish special purpose vehicles, for the cooperation and exchange of information between supervisory authorities regarding special purpose vehicles as well as to set out formats and templates for information to be reported by special purpose vehicles
  • Commission Implementing Regulation (EU) 2015/461 – process to reach a joint decision on the application to use a group internal model
  • Commission Implementing Regulation (EU) 2015/460 – procedure concerning the approval of an internal model

Pillar 2 (qualitative requirements)

  • Commission Implementing Regulation (EU) 2016/1800 – allocation of credit assessments of external credit assessment institutions to an objective scale of credit quality steps
  • Commission Implementing Regulation (EU) 2015/2015 – procedures for assessing external credit assessments
  • Commission Implementing Regulation (EU) 2015/2012 – procedures for decisions to set, calculate and remove capital add-ons

Pillar 3 (reporting and disclosure requirements)

  • Commission Implementing Regulation (EU) 2017/2189 – amending and correcting Implementing Regulation (EU) 2015/2450
  • Commission Implementing Regulation (EU) 2017/2190 – amending and correcting Implementing Regulation (EU) 2015/2452
  • Commission Implementing Regulation (EU) 2016/1868 – amending and correcting Implementing Regulation (EU) 2015/2450
  • Commission Implementing Regulation (EU) 2015/2452 – procedures, formats and templates of the solvency and financial condition Report
  • Commission Implementing Regulation (EU) 2015/2451 – templates and structure of the disclosure of specific information by supervisory authorities
  • Commission Implementing Regulation (EU) 2015/2450 – templates for the submission of information to the supervisory authorities
  • Commission Implementing Regulation (EU) 2015/2014 – procedures and templates for the submission of information to the group supervisor and for the exchange of information between supervisory authorities

Level 3: EIOPA guidelines and recommendations

With a view to establishing consistent, efficient and effective supervisory practices within the European System of Financial Supervision (ESFS), and to ensuring the common, uniform and consistent application of Union law, EIOPA is in a position to issue guidelines and recommendations addressed to competent authorities or financial institutions.

According to Article 16 (3) EIOPA-Regulation the competent authorities and financial institutions shall make every effort to comply with those guidelines and recommendations. If required by the respective guideline or recommendation, financial institutions shall report, in a clear and detailed way, whether they comply with that guideline or recommendation (Article 16 [3] EIOPA-Regulation). Therefore, the FMA is considering EIOPA guidelines and recommendations in the course of its supervisory activities within the legal framework.

Pillar 1 (quantitative requirements)

Guidelines on basis risk (Format: pdf, Size: 99,0 KB, Language: English)
  • published: 02.02.2015
  • Implementation: FMA: compliant
Guidelines on ring-fenced funds (Format: pdf, Size: 146,7 KB, Language: English)
  • published: 02.02.2015
  • Implementation: FMA: compliant; intend to comply

Pillar 2 (qualitative requirements)

Pillar 3 (reporting and disclosure requirements)

Level 4: Monitoring of harmonised implementation

National implementation measures and supervisory practice are monitored by the European Commission in close collaboration with EIOPA, thereby contributing to supervisory convergence and effective implementation of union law.

Other legal acts in the field of insurance regulation

Distribution and market conduct

  • Directive 2002/92/EC on insurance mediation (repealed with effect from: 23 February 2018)
  • Insurance Distribution Directive (EU) 2016/97 (date of transposition: 23 February 2018)
  • Directive (EU) 2018/411 amending Directive (EU) as regards the date of application (date of transposition: 1 July 2018)
  • Commission Implementing Regulation (EU) 2017/1469 –  laying down a standardised presentation format for the insurance product information document
  • Editable Template for the Insurance Product Information Document (IPID)
  • Commission delegated Regulation (EU) 2017/2358 supplementing Directive (EU) 2016/97 with regard to product oversight and governance requirements for insurance undertakings and insurance distributors
  • Commission delegated Regulation (EU) 2017/2359 supplementing Directive (EU) 2016/97 with regard to information requirements and conduct of business rules applicable to the distribution of insurance-based investment products
  • Commission delegated Regulation (EU) 2018/541 of 20.12.2017 amending Delegated Regulation (EU) 2017/2358 and Delegated Regulation (EU) 2017/2359 as regards their dates of application
  • Guidelines under the Insurance Distribution Directive on Insurance-based investment products that incorporate a structure which makes it difficult for the customer to understand the risks involved (EIOPA-17/651)
    FMA: not addressee of the guideline
  • Regulation (EU) 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)
  • Regulation (EU) 2016/2340 amending Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products as regards the date of its application
  • Commission Delegated Regulation (EU) 2016/1904 supplementing Regulation (EU) No 1286/2014 with regard to product intervention
  • Commission Delegated Regulation (EU) 2017/653 supplementing Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)
  • Guidelines on the application of Regulation (EU) 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)
  •  JC 2017 43 Joint Technical Advice on the procedures used to establish whether a PRIIP targets specific environmental or social objectives pursuant to Article 8 (4) of Regulation (EU) No 1286/2014 on key information documents (KID) for packaged retail and insurance-based investment products (PRIIPs)

Standardisation

Accounting and statutory audits

Reporting requirements to the European Central Bank

  • Regulation (EU) 2015/730 of the European Central Bank amending Regulation (EU) No 1011/2012 concerning statistics on holdings of securities
  • Regulation (EU) 1374/2014 of the European Central Bank on statistical reporting requirements for insurance corporations

Motor vehicle liability insurance and compensation of road accident victims

  • Directive 2009/103/EC on motor vehicle liability insurance
  • Motor Vehicle Liability Insurance Act (KHVG 1994 – Kraftfahrzeug-Haftpflichtversicherungsgesetz 1994)
  • Act on Compensation of Road Accident Victims (VOEG – Verkehrsopfer-Entschädigungsgesetz)
  • Adaptation notice (2010/C 332/1 ) (Notice regarding the adaptation in line with inflation of certain amounts laid down in the Motor Insurance Directive 2009/103/EC)

Other

EIOPA

  • Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC

General criteria and methodologies of the Supervisory Review Process (Art. 36 Directive 2009/138/EC)

Aims of the Supervisory Review Process

The FMA shall monitor and assess the adequacy of strategies, processes and reporting procedures used by the insurance and reinsurance undertakings with regard to their compliance with the applicable regulations regarding contract-based insurance.

The FMA shall in particular assess the qualitative requirements in relation to the governance system, the risks that the insurance undertaking or reinsurance undertaking is exposed to or could be exposed to, as well as the ability of the undertaking to be able to assess such risks while taking into consideration the prevailing business environment. The following topic areas are at the centre of the supervisory review process:

1. Governance system, including the own risk and solvency assessment and investment rules pursuant to Chapter 5 of the VAG 2016 with the exception of Article 106 and Articles 114 to 116 VAG 2016;
2. Technical provisions pursuant to Section 1 of Chapter 8 of VAG 2016;
3. Solvency capital requirement and minimum capital requirement;
4. Quality and quantity of own funds and
5. where applicable, the continuous compliance with the requirements for an internal model.

Furthermore, the FMA shall assess the adequacy of the methodologies and practices of insurance and reinsurance undertakings that are meant to determine potential events or changes in economic conditions, which could have a detrimental effect on the general financial capacity of the respective undertaking. In addition, the FMA shall assess the ability of insurance and reinsurance undertakings to absorb such potential events or changes in economic conditions.

Depending on the results of this assessment, supervisory measures will be taken.

Criteria and methodologies for the individual phases of the Supervisory Review Process

The Supervisory Review Process can generally be divided into the following three phases
1. Categorisation of risks
2. Detailed review
3. Supervisory measures

Phase 1 – Categorisation of risks

For the categorisation of risks and impacts, both, the information submitted as part of regular reporting requirements under Solvency II as well as additional national reporting requirements under the regulation on reporting by insurance undertakings, are being taken into account.
These reports are, among other things, used to generate risk and early warning indicators. The results of stress tests, time series analyses, comparisons between undertakings or relevant peer groups and other issue-related analyses are also considered in assessments. Further examples of elements that are regarded are indications from other supervisory authorities and analyses of the general and insurance specific market environments as well as the market behaviour of individual undertakings. For the classification of the respective undertaking all of this data, which is assessed in a largely standardised manner at first, is complemented with additional qualitative observations (e.g. from a regular dialogue with company representatives).

For the purpose of the categorisation of risks, the FMA identifies and assesses the ability of undertakings to adequately react to and to bear current and potential future risks. The risk profile is thereby contrasted with the ability to bear risk.

In the case of the categorisation of impacts, the impact of default on both the policyholders and the market are assessed. The result is for example determined by the size of the undertaking (as defined by the amount of technical provisions and premiums).

The categorisation of risks and of impacts is transferred to four supervisory levels – ranging from “low” to “very high” – defining the supervisory intensity for the next year.  The supervisory plan, determining the frequency and the intensity of the supervisory activities for every undertaking, is based on the assignment of undertakings to respective supervisory levels.

Phase 2 – Detailed review

Detailed reviews take place on the basis of the supervisory plan in the form of location-independent analyses and on-site inspections. The FMA’s thematic reviews have been published since the entering into force of the package of measures constituting the “Supervisory Reform 2017”.

Phase 3 – Supervisory measures

Weaknesses as well as existing or potential deficiencies or infringements against requirements may lead to supervisory measures being ordered. The initiation of such measures is commensurate to the detected deficiencies. A review of the implementation of measures in the undertaking is conducted by the FMA and the supervisory plan is adjusted in accordance to the effectiveness of the activities conducted in the undertaking concerned.

Supervisory Review Process for Insurance Groups

The Supervisory Review Process also applies to insurance groups, where the procedure generally follows the same processes that are used for individual undertakings. In addition, the supervisory authorities that are involved work in close cooperation with one another. The procedures for cooperation, the exchange of information and consultation between the supervisory authorities that form the supervisory college are determined and applied in the respective supervisory college.

Aggregated statistical data pursuant to Article 31 (2) point c) of Directive 2009/138/EC

  • Template A for the disclosure of aggregate statistical data with regard to insurance and reinsurance undertakings supervised under Directive 2009/138/EC
  • Template B for the disclosure of aggregate statistical data with regard to insurance groups supervised under under Directive 2009/138/EC
  • Template C for the disclosure of quantitative aggregate statistical data on the supervisory authority
  • Template D for the disclosure of qualitative aggregate statistical data on the supervisory authority

Aims, principle functions and activities of supervision
(Article 31 (2)(e) Directive 2009/138/EC)

Aims of supervision

The protection of policyholders and beneficiaries is the main purpose of insurance supervision.
Irrespective of this main aim, the FMA shall duly consider in the performance of its tasks the potential impact of its decisions on the stability of the financial system in all EEA Member States concerned, particularly in emergency situations, based on the information available at the relevant time. In times of exceptional movement in the financial markets the FMA shall take the potential procyclical effects of the measures that it deploys into account.

Main functions of supervision

The FMA shall monitor all business conduct of insurance and reinsurance undertakings in the scope set out for the licence pursuant to Article 6 para. 1 VAG 2016.
The FMA’s supervisory activities must be both risk-based and forward looking. It shall be at the centre of the supervisory activities to monitor the orderly functioning of insurance and reinsurance business as well as the compliance with the applicable regulations for the operation of contractual insurance business, in particular the VAG 2016, Commission Delegated Regulation (EU) 2015/35 and the EU technical standards, of insurance and reinsurance undertakings. In this regard, the FMA takes care of an appropriate combination of location-independent activities and on-site inspections.
Furthermore, in exercising its powers, the FMA shall take the nature, scale and complexity of the risks arising from business activities of insurance and reinsurance undertakings into account.

Main areas for ongoing or planned supervisory activity

Insurance supervision includes the performance of the official tasks and powers that are defined and are assigned to the FMA in the Insurance Supervision Act 2016 (VAG 2016 – Versicherungsaufsichtsgesetz 2016), in the Motor Vehicle Liability Insurance Act of 1994 (KHVG 1994 – Kraftfahrzeug-Haftpflichtversicherungsgesetz), in the Act on Compensation of Road Accident Victims (VOEG – Verkehrsopfer-Entschädigungsgesetz), in the Federal Law on the Liability under Civil Law for Damage caused by Radioactivity (AtomHG 1999 – Atomhaftungsgesetz 1999), in the Financial Conglomerates Act (FKG – Finanzkonglomerategesetz), in the Rating Agencies Enforcement Act (RAVG – Ratingagenturenvollzugsgesetz), in the Act on the Enforcement of the Securities Financing Transactions Regulation  (SFT-Vollzugsgesetz) and in the Financial Markets Anti-Money Laundering Act (FM-GwG –  Finanzmarkt-Geldwäschegesetz).

Details on the main areas for supervisory activities are outlined in FMA Annual Reports as well as in FMA’s thematic reviews.

Further information

Related information

Insurance Statistics (Amount of premiums and financial situation)