Governance in the insurance and reinsurance business has been saved
Governance in the insurance and reinsurance business
Circular letter on the prudential expectations of the National Bank of Belgium
On 5 July 2016, the National Bank of Belgium (NBB) published a circular letter on the prudential expectations concerning governance in the insurance and the reinsurance business, including an accompanying annex, entering into force on the same day.
Regulatory newsflash | 5 August 2016
In this issue
With this circular letter, the NBB aims to achieve four objectives:
- First and foremost, the NBB wants to provide a complete overview of the legal texts regulating the governance requirements applicable to (re)insurance undertakings. Since the governance regime for (re)insurance undertakings predominantly originates from the 2009 Solvency II directive and its related legislation and guidance, the circular incorporates several (transpositions) of these relevant texts.
- In addition, the circular seeks to transpose additional level 3 guidance on Solvency II into Belgian law in the form of the “guidelines on system of governance” of the European Insurance and Occupational Pensions Authority (EIOPA) of 14 September 2015. These guidelines are closely aligned to the Circular 2013_20 of the NBB on the requirements concerning the governance system in the context of the preparatory measures for Solvency II.
- The NBB also aims to update its own existing guidance on the governance of (re)insurance undertakings by replacing any circulars that are no longer aligned with the governance requirements imposed by the Solvency II Law.
- Lastly, the NBB also employs this circular to provide new guidance on its prudential recommendations and expectations regarding the application of the Solvency II Law.
Download the newsflash to learn more about:
- The prudential expectations
- The impact of the new/or changed requirements
- The differences compared to credit institutions