Here you can find information about applying for a licence, about the appointment of board members, the election of the chairperson of the supervisory board as well as cross-border activities conducted by insurance undertakings within the EEA .
The conditions for operation as a contractual insurance undertaking in Austria are defined in the Insurance Supervision Act 2016 (VAG 2016– Versicherungsaufsichtsgesetz 2016). Important information for parties applying for a licence can be found here
The appointment of a new member of the management board must be notified to the FMA at latest one month prior to appointment (Article 122 para. 1 VAG 2016 ). The election and retirement of the chairperson of the supervisory board shall be notified without delay (Article 123 para. 4 VAG 2016 ).
Notifications over the Incoming Platform
Notifications must be submitted over the Incoming Platform. The necessary forms are made available on the Incoming Platform, which are to be used and which are intended to ensure efficient execution. Documentation that must also be submitted (e.g. a curriculum vitae or an extract of a judicial record) is described in greater detail in this form.
Fit & Proper Test
Article 120 paras. 1 and 2 VAG 2016 and Article 123 para. 2 VAG 2016 , which are to be enforced by the FMA, contain personal requirements in relation to the members of the management board as well as the chairperson of the supervisory board. These requirements address both their personal propriety as well as their professional fitness.
With regard to professional fitness, the FMA places particular emphasis on the fact that every member of the management board as well as the chairperson of the supervisory board of an insurance undertaking has the necessary knowledge of the applicable supervisory regulations in order to be able to assume overall responsibility in the management board or responsibility as the chairperson of the supervisory board in an adequate manner.
In order to check adequate theoretical knowledge, generally by way of a follow-up to the notification regarding the appointment of a member of the management board or the election of the chairperson of the supervisory board, an appointment is arranged for a Fit & Proper Test, containing questions about supervisory topics and standards.
The Fit & Proper Test focuses on the main provisions of the VAG 2016 , Delegated Regulation 2015/35 and the applicable FMA regulations. Furthermore, knowledge is also assumed of the principle regulations under company law.
In the event that the candidate does not pass the Fit & Proper Test, then an extended test is conducted, with a greater number of questions. In the event that this test is also not passed, then the undertaking shall be informed of this by the FMA.
Members of the management board will then be given a third and final opportunity to pass the test. In the event that the chairperson of the supervisory board does not pass the extended test, or the member of the management board does not pass the repeated sitting of the extended test, then the FMA assumes that the candidate does not have the required professional fitness and takes the appropriate supervisory measures.
The notification about the intended establishment of a branch pursuant to Article 21 para. 1 VAG 2016 is to be submitted via the Incoming Platform. The necessary form to be used is made available on the Incoming Platform and which is intended to ensure efficient execution. The information and documentation that must also be submitted (e.g. business plan or the curriculum vitae of the authorised agent) are described in greater detail in this form.
The notification about the intended commencement of the provision of services pursuant to Article 23 para. 1 VAG 2016 is to be submitted via the Incoming Platform. The necessary form to be used is made available on the Incoming Platform and which is intended to ensure efficient execution.
Particularly material provisions in conjunction with cross-border activities within the EEA are explained here. The competent court decided which provision are actually applicable.
Further information can be found on the European Commission Website in the section about Getting ready for the end of the transition period. Reference is also made to the EIOPA Recommendations for the insurance sector in light of the United Kingdom withdrawing from the European Union dated 14.06.2019 EIOPA-BoS-19/040.
EIOPA urges the insurance sector to finalise preparations and implement suitable and realistic contingency plans in advance of the end of the UK transition period (Read more).
Insurance Supervision Act 2016 (VAG 2016; Versicherungsaufsichtsgesetz 2016)