Insurance Supervision

Introduction

Regulation 6(1) of the Insurance Business (General Provisions of Supervision) Regulations, 2015, requires the MFSA to carry on its duties in a transparent and accountable manner taking into account the protection of confidential information. This requirement emanates from Article 31 of Directive 2009/138/EC (“the Solvency II Directive”). In order to foster a uniform level of transparency and accountability of supervisory authorities  and in order to ensure that the information disclosed in accordance with Article 31(2) of Directive 2009/138/EC (“the Solvency II Directive”) is easily accessible and comparable, the supervisory authorities are required to disclose certain information. This information is to be disclosed in a common format and shall be sufficient to enable a comparison of the supervisory approaches adopted by the MFSA and the European regulatory authorities of the different Member States.

In terms of regulation 6(2) of the Insurance Business (General Provisions of Supervision) Regulations, 2015, the MFSA is required to publish, in accordance with any delegated acts and implementing technical standards adopted by the European Commission pursuant to Article 31(4) and (5) of the Solvency II Directive, the following information:

(a) the texts of laws, regulations, administrative rules and general guidance adopted in Malta in the field of insurance regulation;

(b) the general criteria and methods, including the tools to be used in the supervisory review process;

(c) without prejudice to the confidentiality provisions contained in the Act, aggregate statistical data on key aspects of the application of the prudential framework in Malta;

(d) the manner of exercise of the options provided for in the Solvency II Directive;

(e) the objectives of supervision and its main functions and activities.

For this purpose, the Commission Implementing Regulation 2015/2451 of 2 December 2015 lays down implementing technical standards with regard to the templates and structure of the disclosure of specific information by supervisory authorities in accordance with Directive 2009/138/EC of the European Parliament and of the Council, and requires the MFSA to present the information to be disclosed under Article 31(2) of the Solvency II Directive as follows:

Laws, regulations, administrative rules and general guidance

Article 31(2)(a) of the Solvency II Directive requires the MFSA to disclose information on the text of laws, regulations, administrative rules and general guidance in the field of  insurance regulation.

Union legislation in the field of insurance regulation that is directly applicable in a Member State

The following are a list of delegated acts and implementing technical standards adopted by the European Commission under the Solvency II Directive, that are directly applicable in Malta:

Solvency II Delegated Regulations

Solvency II Implementing Regulations

Solvency II Delegated Decisions

International Accounting Standards Regulation

Audit Regulation

The text of national laws, regulations, administrative rules and general guidance in the field of insurance regulation, transposing or based on Union law or otherwise applicable

The framework of Maltese insurance legislation transposing the Solvency II Directive consists of the following:

(1)     Insurance Business Act (Cap. 403);

(2)     Regulations issued under the Act;

(3)     Insurance Rules issued under  the Act; and

(4)     EIOPA Guidelines

The MFSA issues Circulars and guidance to insurance and reinsurance undertakings regarding the implementation of the Solvency II Directive, which may be accessed here.

Aggregate Statistical Data

Article 31(2)(c) of the Solvency II Directive, Article 316 of the Commission Delegated Regulation (EU) 2015/35 (1) and Annex XXI to the said Regulation, require the MFSA to disclose aggregate statistical data relating to information on key aspects of the application of the prudential framework under the Solvency II Directive, by using the following Templates:

Disclosure of Data on the MFSA

TEMPLATE A – for the Disclosure of Aggregate Statistical Data with regard to Insurance and Reinsurance Undertakings supervised under Directive 2009/138/EC

TEMPLATE B – for the Disclosure of Aggregate Statistical Data with regard to Insurance Groups Supervised Under Directive 2009/138/EC

TEMPLATE C – for the Disclosure of Quantitative Aggregate Statistical Data on the MFSA, 2018

TEMPLATE D – for the Disclosure of Qualitative Aggregate Statistical Data on the MFSA, 2018

The exercise of options under the Solvency II Directive

Article 31(2)(d) of the Solvency II Directive requires the MFSA to disclose information on the manner of exercise of options provided for in the Solvency II Directive. The disclosure of information by the MFSA regarding these options may be found in this list of options which indicates whether the MFSA has adopted the particular options in the process of Solvency II implementation.

The Supervisory Objectives, Functions and Activities & The Supervisory Review Process

Article 31(2)(b) and (e) of the Solvency II Directive require the MFSA to disclose information on the general criteria and methods used in the supervisory review process and on objectives of the supervision and its main functions and activities, respectively. This information can be accessed here.