On 16 November 2005, the Council and the European Parliament adopted Directive 2005/68/EC on reinsurance. The Directive forms part of the European Union’s Financial Services Action Plan, which aims to create a single market in financial services in the European Union.

According to Article 64 (1), the deadline for transposing the Directive is the 10th of December 2007

There are definitely challenges, but also opportunities after December, 2007. This directive gives you the freedom to passport your services. Upon authorization, reinsurers are able to carry out business in any of the EEA States either through a branch, or directly under the freedom to provide services.

Although Special Purpose Vehicles (SPVs) are not reinsurance undertakings, they do conduct reinsurance-like activities. SPVs receive their authorisation in accordance with Article 46. Member States can ask for supplementary supervision within the scope of their national legislation. We will discuss the risks and the opportunities of using SPVs.

Reinsurance allows direct insurance undertakings have a higher underwriting capacity and reduce their capital costs. It plays a very important role in the global financial system. The interaction of the Reinsurance Directive with Solvency ii is a very important part of this presentation.

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4. The following 3 days course

• Compliance
• Legal
• Risk Management
• Internal Audit
• Errors and omissions avoidance
• Clients
• Advisers
• Underwriters
• IT
• Risk and Management Consultants

• The current Solvency I framework and the calculation of capital requirements
• Too simple, no risk sensitive
• Differences across Europe
• Lessons learned from 2002 – 2003 and from insurance company failures
• Need for better risk management

• DIRECTIVE …/…/EC of […] on the taking-up and pursuit of the business of Insurance and Reinsurance
• General rules on the taking-up and pursuit of direct insurance and reinsurance
• Subject matter, scope and definitions
• Scope and exclusions from scope
• Non-life, life, reinsurance
• Authorisation
• Supervisory authorities and powers
• Group supervision: Definitions, cases of application, scope and levels
• Supervision of group solvency 
• Public disclosure
• Report on solvency and financial condition
• Competencies of the supervisory authorities of the host member state
• Insurance and reinsurance undertakings in difficulty or in an irregular situation 

• Provisions specific to non-life insurance
• Provisions specific to life insurance 

• Responsibility of the administrative or management body
• System of governance
• General governance requirements
• Risk management
• Own risk and solvency assessment
• Internal control
• Internal audit, duties of auditors
• Pursuit of life and non-life insurance activity
• Separation of life and non-life insurance management
• Risk management and internal control
• Mixed-activity insurance holding companies
• Intra-group transactions 

• Rules relating to the valuation of assets and liabilities, technical provisions, own funds, solvency capital requirement, minimum capital requirement and investment rules
• Valuation of assets and liabilities
• Own funds
• Determination and classification of own funds
• Solvency Capital Requirement
• Requirement using the standard formula or an internal model
• Calculation of the solvency capital requirement
• Value-at-risk measure, with a 99.5% confidence level, over a one year period
• Capital requirement for operational risk
• Minimum capital requirement
• Calculation of the basic solvency capital requirement
• Calculation of the non-life underwriting risk module
• Calculation of the life underwriting risk module
• Calculation of the special health underwriting risk module
• Calculation of the market risk module

• Parent undertakings outside the community: verification of equivalence
• Parent undertakings outside the community: absence of equivalence
• Parent undertakings outside the community: levels
• Cooperation with third countries supervisory authorities

• Directive 2005/68/EC of 16 November 2005 on reinsurance
• Reinsurance, Captive Reinsurance Undertakings, Finite Reinsurance
• Authorisation
• Principles and methods of financial supervision
• Competent authorities
• Supervision of branches established in another Member State
• Duties of auditors
• Rules relating to the solvency margin and to the guarantee fund
• Required solvency margin for non-life reinsurance activities
• Required solvency margin for life reassurance activities
• Reinsurance undertakings in difficulty or in an irregular situation and withdrawal of authorisation
• Special purpose vehicles
• Reinsurance undertakings not complying with the legal provisions
• Principle and conditions for conducting reinsurance business
• Third countries
• Committee procedure - The European Insurance and Occupational Pensions Committee
• Reinsurance supervision in the EU
• Calculation of the adjusted solvency of insurance undertakings and reinsurance undertakings
• Transposition

• The Lamfalussy Process
• From Level 1 to Level 2
• EIOPC - The Level 2 Committee
• CEIOPS - The Level 3 Committee
• Level 4 challenges

• Solvency ii, the Reinsurance Directive and countries of  the European Economic Area
• Solvency ii, the Reinsurance Directive and countries outside the European Economic Area
• Solvency ii, the Reinsurance Directive and the Offshore Financial Centers (OFCs)
• Solvency ii, the Reinsurance Directive and the USA

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