Stand:updated on 01.01.2016 | Topic Solvency Solvency I
The adoption of the first non-life insurance Directive (Directive 73/239/EEC) in 1973 and of the first life assurance Directive (Directive 79/267/EEC) six years later were the first steps towards harmonisation of insurance supervision in Europe. Implementation of the Directives resulted in harmonised solvency requirements in the EU Member States. The supervisory regime Solvency I was perfected by the second and third Directives (Directives 88/357/EEC, 90/619/EEC, 92/49/EEC and 92/96/EEC), which inter alia implemented the freedom to provide services in the insurance sector.
Work aimed at improving and providing a new focus for the existing EU solvency rules began at the European level in the 1990s. The European solvency rules for instance underwent a comparative examination by a Working Group led by former president of the Federal Insurance Supervisory Office (Bundesaufsichtsamt für das Versicherungswesen – BAV), Dr Helmut Müller. In its final report (the Müller Report), the Working Group stated that the European solvency rules had essentially stood the test of time. The result of the examination also showed, however, that the existing provisions on own funds did not adequately account for all risks to which an insurer is exposed. Comprehensive reform of the own funds provisions was therefore decided. However, as a result of the complexity of the subject matter, only the most urgent changes to Solvency I were implemented initially, with only the life assurance Directive (Directive 2002/83/EC) and the Directive regarding the solvency margin requirements for non-life insurance undertakings (Directive 2002/13/EC) adopted; the provisions of the first to third life assurance Directives which continued to apply were incorporated into the life assurance Directive. These Directives were transposed into national law through the German Act implementing regulatory provisions on the reorganisation and winding-up of insurance undertakings and credit institutions (Gesetz zur Umsetzung aufsichtsrechtlicher Bestimmungen zur Sanierung und Liquidation von Versicherungsunternehmen und Kreditinstituten - KredSanG) of 10 December 2003 (Federal Law Gazette I 2003, p. 2478). However, both Directives only represented a transitional solution towards a new risk-based supervisory system. The fundamental reform of the solvency rules for insurers remained the preserve of the supervisory regime Solvency II.
The Solvency I rules, however, remain applicable to undertakings to which Solvency II does not apply (small insurance undertakings, institutions for occupational retirement provision and death benefit funds). The core elements of Solvency I are included in sections 213 ff. of the Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG) as well as in the Capital Resources Regulation (Kapitalausstattungsverordnung – KapAusstV), the Investment Regulation (Anlageverordnung – AnlV) and the Regulation on the Supervision of Pensionsfonds (Pensionsfonds-Aufsichtsverordnung – PFAV).