WP State Supervision Regulatory barriers for the

Transcript:WP State Supervision Regulatory barriers for the:
WP State Supervision Regulatory barriers for the distribution of group insurance policies Dr. Gunne W. Bähr Rom 29th September 2014! A European/German Law Perspective (1) Issues to consider when seeting-up a group insurance contract Location of the risk / non admitted issue – Can a risk carrier domiciled outside Europe / Germany provide coverage to insureds in Germany without being licenced in Germany? Insurance intermediary issue – Does a policyholder of a group insurance contract need a licence to mediate insurance cover to insureds in Europe / Germany? tax issue 29 September 2014 Gunne W. Bähr A European /German Law Perspective (2) Consequences of regulatory infringements, or: Why we should care? Fines, criminal proceedings vis-à-vis insurer and/or its managements Fines against intermediary and/or policyholder Contract or insurance coverage may be void (not in Germany) 29 September 2014 IGunne W. Bähr A European /German Law Perspective (3) 29 September 2014 Gunne W. Bähr Location of the risk The country in which the insurance business is carried out (and where a licence is required) is, under European law, where the risk is situated (Directive 88/357 – consolidated in the Solvency Ii Directive) for real estate where the property is located for registered vehicles the country of registration for travel- and holiday risks the country where the contract was concluded for all other risks the country in which the policyholder has its habitual abode; if the policyholder is an entity, where its seat or branch is related to the cover Please note that the German regulator assumes a local risk (in Germany) when the insured has an own right to claim the insurance benefit A European/German Law Perspective (4) 29 September 2014 Gunne W. Bähr Freedom of Services/Freedom of Establishment Primary insurers need to go through a “notification procedure” in order to operate in another EC/EEA country Without further requirements, EC/EEA insurers may transact insurance by way of the freedom to provide services or through a branch office (freedom of establishment) within the entire EC/EEA (Article 4 (1) Reinsurance Directive) Conclusion: No supervisory challenges for providing group insurance coverage in Germany. However, the non EU/EEA (or EEA) insurer must be notified to conduct insurance business on the basis of FOS (or through a branch) in the respective European jurisdiction/Germany. A European/German Law Perspective (5) 29 September 2014 Gunne W. Bähr Sec. 105 (2) VAG „Non-Member State insurance undertakings