Insurance company regulation based on the Solvency II Directive1
Current regulation of the business of life, non-life and reinsurance companies (insurance companies) is based, in principle, on the Solvency II Directive. Solvency II is a maximum harmonisation directive, which in Finland has been incorporated into the Insurance Companies Act (521/2008). The Directive has reformed the regulation and supervision of life and non-life insurance companies. It is designed to provide a harmonised, risk-based overall prudential framework that promotes internal competition within the EU, effective capital utilisation and the own risk management of undertakings and, by extension, enhances the protection of insured interests.
In addition to the Insurance Companies Act, the activities of insurance companies are governed by Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II). The Regulation is directly applicable legislation without national implementation and is supplemented by the technical regulatory and enforcement standards, prepared by the European Insurance and Occupational Pensions Authority (EIOPA) and adopted as decisions and implementing regulations of the EU Commission, which are binding and directly applicable in the Member States. In addition, EIOPA has issued guidelines on the application of the Solvency II Directive, which the Finnish Financial Supervisory Authority has incorporated into its regulations and guidelines.
1) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
Prudential regulation and supervision under Solvency II Commission Implementing Regulation EU 2015/2451
A. Acts, decrees, administrative regulations and general guidelines related to the regulation of the insurance sector
FIN-FSA’s regulations and guidelines
B. The FIN-FSA’s general principles and methods guiding the inspection process (to be updated later)
C. Statistical data under Solvency II
D. The manner of exercise of the options provided for in the Solvency II Directive (to be updated later)
E. Aims of insurance supervision and supervisory tasks and activities (to be updated later)
Links to regulation
Insurance Companies Act – up to date (521/2008)
Act on the amendment of the Insurance Companies Act – only amendments (303/2015)
Act on the entry into force of the Act amending the Insurance Companies Act (304/2015)
Decree on the calculation of the equalisation provision of non-life insurance companies (357/2015)
Decree on the insurance company’s business activities plan (355/2015)
Decree on the matching adjustment to be used in the solvency calculation according to chapter 10 of the Insurance Companies Act (356/2015)
The European Commission publishes an updated list of implementing and delegated acts for the Solvency II Directive.
Regulations and guidelines 1/2015 Life and non-life insurance companies, Solvency II guidelines, part I (in Finnish). English-language guidelines can be found in EIOPA’s online service.
Regulations and guidelines 8/2015 Life and non-life insurance companies, Solvency II guidelines, part II (in Finnish), financial reporting guidelines.
Regulations and guidelines 9/2015 Life and non-life insurance companies, Solvency II guidelines, part II (in Finnish), non-financial reporting guidelines.