Authorised insurers and Pensionsfonds

The number of insurance undertakings supervised by BaFin declined slightly in 2016. At the end of the year under review, BaFin supervised a total of 555 insurance undertakings (previous year: 567) and 29 Pensionsfonds. Out of the total number of insurance undertakings, 534 were engaged in business activities and 21 were not. In order to give as full a picture as possible of the insurance market in Germany, all of the information in this chapter also includes eleven public-law insurance undertakings supervised by the federal states – ten conducting business activities and one without business activities. The analysis of the undertakings by insurance class is therefore as follows (see Table 32):

Table 32 Number of supervised insurance undertakings and Pensionsfonds*

As at 31 December 2016

Number of supervised insurance undertakings and Pensionsfonds*

* These figures do not include the relatively small mutual insurance associations whose activities are mostly regionally based and that are supervised by the federal states (BaFin 2015 statistics – Primary insurers and Pensionsfonds, page 9, Table 5). ** One property/casualty insurer primarily offers Non-SLT health insurance (health insurance operated on a similar technical basis to that of non-life insurance) and is included in the projection for health insurers in chapter IV 2.4.2. Source: BaFin

Life insurers

One German life insurer supervised by BaFin ceased operating in 2016. One undertaking was newly authorised.
One branch of an undertaking from Luxembourg ceased operating. Five insurers from the European Economic Area (EEA) registered for the cross-border provision of services in Germany (see Table 33 “Registrations by EEA life insurers in 2016” ).

Table 33 Registrations by EEA life insurers in 2016

As at 31 December 2016

Registrations by EEA life insurers in 2016

* CBS = Cross-border provision of services within the meaning of section 61 (3) of the Insurance Supervision Act (Versicherungsaufsichtsgesetz). ** BO = Branch office business within the meaning of section 61 (2) of the Insurance Supervision Act. Source: BaFin

Health insurers

Two health insurance undertakings ceased operating. One undertaking was newly authorised.

Property and casualty insurers

Ten property and casualty insurers supervised by BaFin ceased operating in 2016. Three undertakings were newly authorised during the year under review. Five property and casualty insurers from the EEA (Finland, Luxembourg, Spain and two from the United Kingdom) established a branch office in Germany. Two branch offices from the United Kingdom and two from the Netherlands ceased operating. 27 insurers from the EEA registered for the cross-border provision of services in Germany. Other insurers that had already registered for the cross-border provision of services in Germany reported an expansion in their business activity (see Table 34 “Registrations by EEA property and casualty insurers in 2016”).

Table 34 Registrations by EEA property and casualty insurers in 2016

As at 31 December 2016

Registrations by EEA property and casualty insurers in 2016

* CBS = Cross-border provision of services within the meaning of section 61 (3) of the Insurance Supervision Act. ** BO = Branch office business within the meaning of section 61 (2) of the Insurance Supervision Act. Source: BaFin

Reinsurers

The number of active reinsurers under BaFin’s supervision increased to 29 in the year under review. Four reinsurers are no longer accepting new business. Six branches of undertakings from the EEA (Ireland, Spain, Luxembourg and three from France) were operating in Germany in 2016.

Pensionskassen, Pensionsfonds and funeral expenses funds

Three Pensionskassen, two Pensionsfonds and one funeral expenses fund ceased operating in 2016.

Approval procedures under Solvency II

Insurance undertakings are required to calculate their solvency capital requirement (SCR) at least once a year. This involves applying the standard formula in principle, but variations are permitted with the approval of BaFin (section 109 of the Insurance Supervision Act). Alternatively, the undertakings may calculate their SCR using an internal model approved by the Supervisory Authority (section 111 of the Insurance Supervision Act).

Under Solvency II insurance undertakings have to prepare a solvency statement in which technical provisions must be recognised for all insurance obligations. At the request of the undertakings, BaFin may approve the use of volatility adjustments (section 82 of the Insurance Supervision Act) as well as transitional measures for risk-free interest rates (section 351 of the Insurance Supervision Act) and technical provisions (section 352 of the Insurance Supervision Act).

Table 35 below (“Approval procedures”) gives an overview of the approvals granted up to the end of 2016 :

Table 35 Approval procedures

As at 31 December 2016

Approval procedures

Source: BaFin