Erscheinung:28.11.2023 | Topic Measures SIGNAL IDUNA Lebensversicherung a.G.: BaFin stipulates capital add-on
On 31 May 2023, BaFin stipulated a capital add-on to the capital requirement for SIGNAL IDUNA Lebensversicherung a.G. The capital add-on was stipulated due to deficiencies in the company’s business organisation, specifically in relation to its IT infrastructure. BaFin identified the deficiencies with the scope of an inspection. The company has been ordered to remedy these deficiencies.
The orders have been final and binding since 13 November 2023.
Publication of the orders is based on section 319 of the German Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG).
Background information:
Insurance companies must have a proper, effective business organisation that is appropriate for the nature, scope and complexity of their activities. An insurance company’s business organisation includes its IT infrastructure. BaFin has specified the requirements in this regard in its Supervisory Requirements for IT in Insurance Undertakings (Versicherungsaufsichtliche Anforderungen an die IT – VAIT).
BaFin can order a capital add-on in the case of deficiencies in the business organisation of insurance companies or insurance groups that are supervised under Solvency II. The capital add-on increases the solvency capital requirement. This is intended to cover risks arising from the deficiencies. BaFin will revoke the capital add-on when the deficiencies have been remedied.
Announcement
By notice of 31 May 2023, the Federal Financial Supervisory Authority (BaFin) stipulated a capital add-on to the solvency capital requirement for SIGNAL IDUNA Lebensversicherung a.G. due to deficiencies in the company’s business organisation. The company was also ordered to remedy, within a set time limit, the deficiencies that resulted in the stipulation of a capital add-on.
The measures were imposed due to violations of the requirements for proper business organisation within the meaning of section 25a (1) of the German Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG). An inspection of the company’s IT-related business organisation revealed that the business organisation could not be deemed proper in all areas inspected.
The orders were issued on the basis of section 301 (1) no. 3, (2) sentence 2, (3), section 296 (1) and section 297 of the VAG in conjunction with Articles 277, 281 and 286 of Commission Delegated Regulation (EU) 2015/35 of 10 October 2014.
The orders have been final and binding since 13 November 2023.
Publication of the orders is based on section 319 of the VAG.
