solvency margin, should be deemed to be met, since it will be subject Disagreed to rules equivalent to those of Solvency II. EIOPA disagrees to consider the undertaking as solvent because it is We note also that, where several firms are from the same home established in an jurisdiction, it would be inefficient and costly in time and resources equivalent jurisdiction. for the host supervisor and for the firms if the same information and On equivalence, please very similar legal opinions were to be required from each one of also see answer to them. comment 1 Partially agreed Lastly, the requirements imposed by Europe on third-country See response on this undertakings will be seen as a model by other jurisdictions in both issue in same comment emerging and developed markets. The adoption in those markets of above. new capital and reporting requirements, following the example of the EU, could lead to significant costs for European undertakings seeking Partially agreed to operate abroad. An EU model based on a pragmatic and High standards are proportionate approach is therefore needed in the interests of imposed to the extent freedom of commerce. needed for the protection of policy holders. Ring-fencing only applies to branches coming from granting a preferential treatment to their nationals. 7. LICI UK General LICI UK branch ( LICI UK ) is a very small life insurance branch of Life Partially agreed Comment Insurance Corporation of India ( LICI ) which is a very large global life As regards insurance firm having its head office in Mumbai, India. LICI is wholly proportionality, owned by the Government of India and is authorised and regulated proportionality should apply across the paper. by the Insurance Regulatory and Development Authority of India ( Therefore it is not IRDA ). necessary to include a The annual GWP ( gross written premium ) of LICI UK branch is less specific guideline on than £ 5million which is much less than 0.05% of LICI’s overall proportionality. Please
solvency margin, should be deemed to be met, since it will be subject to rules equivalent to those of Solvency II. We note also that, where several firms are from the same home jurisdiction, it would be inefficient and costly in time and resources for the host supervisor and for the firms if the same information and very similar legal opinions were to be required from each one of them. Lastly, the requirements imposed by Europe on third-country undertakings will be seen as a model by other jurisdictions in both emerging and developed markets. The adoption in those markets of new capital and reporting requirements, following the example of the EU, could lead to significant costs for European undertakings seeking to operate abroad. An EU model based on a pragmatic and proportionate approach is therefore needed in the interests of freedom of commerce. Disagreed EIOPA disagrees to consider the undertaking as solvent because it is established in an equivalent jurisdiction. On equivalence, please also see answer to comment 1 Partially agreed See response on this issue in same comment above. Partially agreed High standards are imposed to the extent needed for the protection of policy holders. Ring-fencing only applies to branches coming from granting a preferential treatment to their nationals. 7. LICI UK General Comment LICI UK branch ( LICI UK ) is a very small life insurance branch of Life Insurance Corporation of India ( LICI ) which is a very large global life insurance firm having its head office in Mumbai, India. LICI is wholly owned by the Government of India and is authorised and regulated by the Insurance Regulatory and Development Authority of India ( IRDA ). The annual GWP ( gross written premium ) of LICI UK branch is less than £ 5million which is much less than 0.05% of LICI’s overall Partially agreed As regards proportionality, proportionality should apply across the paper. Therefore it is not necessary to include a specific guideline on proportionality. Please
Final%20Report%20on%20the%20public%20consulation%20CP-14-048%20Guidelines%20on%20third%20country%20branches.docx