1.Member States shall require insurance and reinsurance undertakings to submit to the supervisory authorities the information which is necessary for the purposes of supervision, taking into account the objectives of supervision laid down in Articles 27 and 28.28 and the general principles of supervision laid down in Article 29, in particular the principle of proportionality. Such information shall include at least the information necessary for the following when performing the process referred to in Article 36:
(a)to assess the system of governance applied by the undertakings, the business they are pursuing, the valuation principles applied for solvency purposes, the risks faced and the risk-management systems, and their capital structure, needs and management;
(b)to make any appropriate decisions resulting from the exercise of their supervisory rights and duties.
2.Member States shall ensure that the supervisory authorities have the following powers:
(a)to determine the nature, the scope and the format of the information referred to in paragraph 1 which they require insurance and reinsurance undertakings to submit at the following points in time:
(i)at predefined periods;
(ii)upon occurrence of predefined events;
(iii)during enquiries regarding the situation of an insurance or reinsurance undertaking;
(b)to obtain any information regarding contracts which are held by intermediaries or regarding contracts which are entered into with third parties; and
(c)to require information from external experts, such as auditors and actuaries.
3.The information referred to in paragraphs 1 and 2 shall comprise the following:
(a)qualitative or quantitative elements, or any appropriate combination thereof;
(b)historic, current or prospective elements, or any appropriate combination thereof; and
(c)data from internal or external sources, or any appropriate combination thereof.
4.The information referred to in paragraphs 1 and 2 shall comply with the following principles:
(a)it must reflect the nature, scale and complexity of the business of the undertaking concerned, and in particular the risks inherent in that business;
(b)it must be accessible, complete in all material respects, comparable and consistent over time; and
(c)it must be relevant, reliable and comprehensible.
5.Member States shall require insurance and reinsurance undertakings to have appropriate systems and structures in place to fulfil the requirements laid down in paragraphs 1 to 4 as well as a written policy, approved by the administrative, management or supervisory body of the insurance or reinsurance undertaking, ensuring the ongoing appropriateness of the information submitted.
6.Without prejudice to Article 129(4), where the predefined periods referred to in paragraph 2(a)(i) are shorter than one year, the supervisory authorities concerned may limit regular supervisory reporting, where:
(a)the submission of that information would be overly burdensome in relation to the nature, scale and complexity of the risks inherent in the business of the undertaking;
(b)the information is reported at least annually.
Supervisory authorities shall not limit regular supervisory reporting with a frequency shorter than one year in the case of insurance or reinsurance undertakings that are part of a group within the meaning of Article 212(1)(c), unless the undertaking can demonstrate to the satisfaction of the supervisory authority that regular supervisory reporting with a frequency shorter than one year is inappropriate, given the nature, scale and complexity of the risks inherent in the business of the group.
The limitation to regular supervisory reporting shall be granted only to undertakings that do not represent more than 20 % of a Member State's life and non-life insurance and reinsurance market respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions.
Supervisory authorities shall give priority to the smallest undertakings when determining the eligibility of the undertakings for those limitations.
7.The supervisory authorities concerned may limit regular supervisory reporting or exempt insurance and reinsurance undertakings from reporting on an item-by-item basis, where:
(a)the submission of that information would be overly burdensome in relation to the nature, scale and complexity of the risks inherent in the business of the undertaking;
(b)the submission of that information is not necessary for the effective supervision of the undertaking;
(c)the exemption does not undermine the stability of the financial systems concerned in the Union; and
(d)the undertaking is able to provide the information on an ad-hoc basis.
Supervisory authorities shall not exempt from reporting on an item-by-item basis insurance or reinsurance undertakings that are part of a group within the meaning of Article 212(1)(c), unless the undertaking can demonstrate to the satisfaction of the supervisory authority that reporting on an item-by-tem basis is inappropriate, given the nature, scale and complexity of the risks inherent in the business of the group and taking into account the objective of financial stability.
The exemption from reporting on an item-by-item basis shall be granted only to undertakings that do not represent more than 20 % of a Member State's life and non-life insurance or reinsurance market respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions.
Supervisory authorities shall give priority to the smallest undertakings when determining the eligibility of the undertakings for those exemptions.
8.For the purposes of paragraphs 6 and 7, as part of the supervisory review process, supervisory authorities shall assess whether the submission of information would be overly burdensome in relation to the nature, scale and complexity of the risks of the undertaking, taking into account, at least:
(a)the volume of premiums, technical provisions and assets of the undertaking;
(b)the volatility of the claims and benefits covered by the undertaking;
(c)the market risks that the investments of the undertaking give rise to;
(d)the level of risk concentrations;
(e)the total number of classes of life and non-life insurance for which authorisation is granted;
(f)possible effects of the management of the assets of the undertaking on financial stability;
(g)the systems and structures of the undertaking to provide information for supervisory purposes and the written policy referred to in paragraph 5;
(h)the appropriateness of the system of governance of the undertaking;
(i)the level of own funds covering the Solvency Capital Requirement and the Minimum Capital Requirement;
(j)whether the undertaking is a captive insurance or reinsurance undertaking only covering risks associated with the industrial or commercial group to which it belongs.
5a.Taking into account the information required in paragraphs 1, 2, and 3 and the principles set out in paragraph 4, Member States shall ensure that insurance and reinsurance undertakings submit to the supervisory authorities a regular supervisory report that comprises information on the undertaking’s business and performance, system of governance, risk profile, valuation for solvency purposes and capital management over the reporting period.
The frequency of the regular supervisory report shall be:
(a)for small and non-complex undertakings, every three years, or, where permitted by the supervisory authority, up to every five years;
(b)for insurance and reinsurance undertakings other than small and non-complex undertakings, every three years.
For the purposes of point (b) of the second subparagraph, if deemed necessary, a supervisory authority may require supervised undertakings to report more frequently.
9.The Commission shall supplement this Directive by adopting delegated acts in accordance with Article 301a specifying:
(a)the information referred to in paragraphs 1 to 4 of this Article;
(b)9. Thethe Commissioncriteria shallfor adoptlimited delegatedsupervisory actsreporting infor accordancecaptive withinsurance Articleundertakings 301aand specifyingcaptive reinsurance undertakings considering the informationnature, referredscale toand in paragraphs 1 to 4complexity of this Article and the deadlines for the submissionrisks of thatthose information,specific types of undertaking with a view to ensuringensuring, to the appropriate extentextent, convergence of supervisory reporting.
10.In►M13In order to ensure uniform conditions of application of this Article, EIOPA shall develop draft implementing technical standards on regular supervisory reporting with regard to the templates for the submission of information to the supervisory authorities referred to in paragraphs 1 and 2.2, including the risk-based thresholds establishing the trigger for reporting requirements, where applicable, or any exemption of specific information for certain types of undertaking, such as captive insurance and reinsurance undertakings, considering the nature, scale and complexity of the risks of specific types of undertaking. EIOPA shall develop information technology (IT) solutions, including reporting templates and instructions for the reporting referred to in paragraphs 1 and 2.◄
EIOPA shall submit those draft implementing technical standards to the Commission by 30 June 2015.
Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.
11.In order to enhance a coherent and consistent application of paragraphs 6 and 7, EIOPA shall issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to further specify the methods to be used when determining the market shares referred to in the third subparagraph of paragraphs 6 and 7.
12.By 29 January 2027, EIOPA shall submit to the Commission a report on potential measures, including legislative changes, to develop an integrated data collection in order to:
(a)reduce areas of duplications and inconsistencies between the reporting frameworks in the insurance sector and other sectors of the financial industry;
(b)improve data standardisation and efficient sharing and use of data already reported within any Union reporting framework by any relevant Union or national competent authority; and
(c)reduce compliance costs.
EIOPA shall prioritise, but not limit itself to, information concerning the areas of collective investment undertakings and derivatives reporting.
When preparing the report referred to in the first subparagraph, EIOPA shall work in close cooperation with the other European Supervisory Authorities and the European Central Bank (ECB) and shall, where relevant, involve the national competent authorities.