Insurance company regulation based on the Solvency II Directive1
Current regulation of the business of life, non-life and reinsurance companies (insurance companies) is based, in principle, on the Solvency II Directive. Solvency II is a maximum harmonisation directive, which in Finland has been incorporated into the Insurance Companies Act (521/2008). The Directive has reformed the regulation and supervision of life and non-life insurance companies. It is designed to provide a harmonised, risk-based overall prudential framework that promotes internal competition within the EU, effective capital utilisation and the own risk management of undertakings and, by extension, enhances the protection of insured interests.
In addition to the Insurance Companies Act, the activities of insurance companies are governed by Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 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 (Solvency II). The Regulation is directly applicable legislation without national implementation and is supplemented by the technical regulatory and enforcement standards, prepared by the European Insurance and Occupational Pensions Authority (EIOPA) and adopted as decisions and implementing regulations of the EU Commission, which are binding and directly applicable in the Member States. In addition, EIOPA has issued guidelines on the application of the Solvency II Directive, which the Finnish Financial Supervisory Authority has incorporated into its regulations and guidelines.
Prudential regulation and supervision under Solvency II Commission Implementing Regulation EU 2015/2451
B. The FIN-FSA’s general principles and methods guiding the inspection process (to be updated later)
D. The manner of exercise of the options provided for in the Solvency II Directive (to be updated later)
E. Aims of insurance supervision and supervisory tasks and activities (to be updated later)
Links to regulation
Insurance Companies Act – up to date (521/2008)
Act on the amendment of the Insurance Companies Act – only amendments (303/2015)
Act on the entry into force of the Act amending the Insurance Companies Act (304/2015)
Decree on the calculation of the equalisation provision of non-life insurance companies (357/2015)
Decree on the insurance company’s business activities plan (355/2015)
Decree on the matching adjustment to be used in the solvency calculation according to chapter 10 of the Insurance Companies Act (356/2015)
(EU) 2015/499 Use of ancillary own-fund items
(EU) 2015/460 Approval of internal models
(EU) 2015/461 Process to reach a joint decision on the application to use a group internal model
(EU) 2015/498 Undertaking-specific parameters
(EU) 2015/500 Application of a matching adjustment, MA
(EU) 2015/462 Procedures for supervisory approval to establish special purpose vehicles SPV
(EU) 2015/2011 Treatment of exposures
(EU) 2015/2012 Procedures for decisions to set, calculate and remove capital add-ons
(EU) 2015/2013 Health risk equalisation systems
(EU) 2015/2014 Procedures and templates for the submission of information to the group supervisor and for the exchange of information between supervisory authorities
(EU) 2015/2015 Procedures for assessing external credit assessments
(EU) 2015/2016 Symmetric adjustment of the standard equity capital charge
(EU) 2015/2017 Currency risk for currencies pegged to the euro
(EU) 2015/2450 Submission of information to the supervisory authorities
(EU) 2015/2452 Solvency and financial condition report
The Commission has also published reporting standards in its online service.
Regulations and guidelines 1/2015 Life and non-life insurance companies, Solvency II guidelines, part I (in Finnish). English-language guidelines can be found in EIOPA’s online service.
Regulations and guidelines 8/2015 Life and non-life insurance companies, Solvency II guidelines, part II (in Finnish), financial reporting guidelines.
Regulations and guidelines 9/2015 Life and non-life insurance companies, Solvency II guidelines, part II (in Finnish), non-financial reporting guidelines.