RegAlert2023-04-11 | NBB_2023_03Added
Circular NBB_2023_03 on 'run-off' and risk mitigation
Belgian insurers and reinsurers, including run-off entities, must notify the National Bank of Belgium immediately upon deciding to cease writing new significant business, providing detailed financial projections, governance decisions, and reinsurance contracts. Acquirers of run-off portfolios must engage in early dialogue with the regulator, submitting actuarial adequacy reports and risk profile analyses before formalizing acquisitions or transfers. Entities must adjust technical provisions to reflect run-off strategies, ensuring realistic assumptions regarding expenses, policyholder behavior, and counterparty default adjustments, while adhering to prudent investment and liquidity risk management standards.
NBB published 1 document in the last 30 days — get each new one by email the day it lands.
de Beriaimontlaan 14 - BE-1000 Brussels tel. +32 2 221 27 31 - fax + 32 2 221 31 36 enterprise number: 0203.201.340 RPR Brussels www.nbb.be Nationale Bank DE BELGIQUE VAN BELGIE Banque Nationale circular Brussels, 11 April 2023 Reference:
your correspondence:
Frank Van Steen tel. +32 2 221 21 23 frank.vansteen@nbb.be NBB__2023 03 Circular on 'run-off' and risk mitigation Scope Belgian insurance or reinsurance companies (excluding small Belgian insurance companies referred to in Articles 275 and 276 or local companies referred to in Article 294 of the Solvency II Law), Branches established in Belgium by insurance or reinsurance companies subject to the law of countries that are not members of the European Economic Area, Parent entities[] of a Belgian insurance or reinsurance group within the meaning of Articles 339, 2° and 343, paragraph 2, 1° and 2° of the Solvency II Law for which the Bank has been designated as the group supervisor within the meaning of Articles 407 and 408 of the aforementioned Law, Parent entities[] of a Belgian financial conglomerate within the meaning of Article 340, 1° of the Solvency II Law for which the Bank has been designated as the group supervisor within the meaning of Articles 471 and 472 of the aforementioned Law, Mutual insurance companies defined in Article 15, 79° of the Solvency II Law (excluding small Belgian insurance companies referred to in Article 275 of the Solvency II Law). For these companies, 'the Bank' should be replaced by 'the Office for the Control of Mutualities and National Unions of Mutualities' as defined in Article 15, 84° of the same Law. This circular provides information on the Bank's guidelines regarding run-off companies. The circular is based on the EIOPA statement on 'run-off', supplemented by additional clarifications. A specific chapter is dedicated to risk management best practices for run-off companies. More precisely, Belgian insurance or reinsurance companies that are a participating undertaking in at least one insurance or reinsurance company of the European Economic Area or a third country, Belgian insurance or reinsurance companies whose parent company is a mixed insurance holding company or a mixed financial holding company of the European Economic Area or a third country, and Belgian insurance holding companies or mixed financial holding companies that are parent companies of a Belgian insurance or reinsurance company, insofar as they are subject to the legal provisions covered by this circular. NBB_2023_03 - 11 April 2023 Circular - Biz. 1/9
Read the rest free, and get an email when NBB publishes again
Lineage: In force
Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
More like this from NBB
NBB published 1 document in the last 30 days. We email you each new one the day it's published.