In the circumstances set out in paragraph 1(d), the capital add-on shall be proportionate to the material risks arising from the deviation referred to in that paragraph.ģ. In the circumstances set out in paragraph 1(c) the capital add-on shall be proportionate to the material risks arising from the deficiencies which gave rise to the decision of the supervisory authority to set the add-on. In the circumstances set out in points (a) and (b) of paragraph 1, the capital add-on shall be calculated in such a way as to ensure that the undertaking complies with Article 101(3). (d) the insurance or reinsurance undertaking applies the matching adjustment referred to in Article 77b, the volatility adjustment referred to in Article 77d or the transitional measures referred to in Articles 308c and 308d and the supervisory authority concludes that the risk profile of that undertaking deviates significantly from the assumptions underlying those adjustments and transitional measures.Ģ. (c) the supervisory authority concludes that the system of governance of an insurance or reinsurance undertaking deviates significantly from the standards laid down in Chapter IV, Section 2, that those deviations prevent it from being able to properly identify, measure, monitor, manage and report the risks that it is or could be exposed to and that the application of other measures is in itself unlikely to improve the deficiencies sufficiently within an appropriate timeframe (b) the supervisory authority concludes that the risk profile of the insurance or reinsurance undertaking deviates significantly from the assumptions underlying the Solvency Capital Requirement, as calculated using an internal model or partial internal model in accordance with Chapter VI, Section 4, Subsection 3, because certain quantifiable risks are captured insufficiently and the adaptation of the model to better reflect the given risk profile has failed within an appropriate timeframe
(ii) while a partial or full internal model is being developed in accordance with Article 119 (i) the requirement to use an internal model under Article 119 is inappropriate or has been ineffective or (a) the supervisory authority concludes that the risk profile of the insurance or reinsurance undertaking deviates significantly from the assumptions underlying the Solvency Capital Requirement, as calculated using the standard formula in accordance with Chapter VI, Section 4, Subsection 2 and: That possibility shall exist only in the following cases: Following the supervisory review process supervisory authorities may in exceptional circumstances set a capital add-on for an insurance or reinsurance undertaking by a decision stating the reasons. rules on transparency and business conduct to help consumers avoid buying products that do not meet their needs.1.where insurance products are offered in a package with another product or service, for example when a new car is sold together with motor insurance, consumers will have the choice to buy the main product or service without the insurance policy.a simple, standardised insurance product information document (IPID) providing clearer information on non-life insurance products, so that consumers can make more informed decisions.greater transparency in the price and costs of insurance products.Under the IDD, consumers and retail investors buying insurance products benefit from Typical examples include travel agencies or airlines offering travel insurance or sellers of electrical appliance proposing insurance against theft and damage These are businesses offering insurance as an add-on to products and services proposed by them. and also to so-called “ancillary insurance intermediaries”.insurance companies that sell directly to consumers.insurance intermediaries, such as agents and brokers, which have to be registered in their home country and meet certain minimum requirements.
The IDD applies to all sellers of insurance products The sale of insurance products in the EU is regulated by the insurance distribution directive (IDD) adopted in 2016. It also covers sales of insurance products through websites, including comparison websites if they allow concluding an insurance contract.
Insurance distribution means to sell, propose to sell, advise on or prepare in any other way the conclusion of insurance contracts.