RegAlert2023-04-11 | NBB_2023_03Added · Updated
Circular NBB_2023_03 on 'run-off' and risk mitigation
The National Bank of Belgium establishes expectations for Belgian insurance and reinsurance entities, including branches of non-EEA insurers and group entities, regarding the 'run-off' business model and risk mitigation strategies. The circular mandates immediate notification to the regulator upon the decision to cease writing new significant business, requiring detailed financial forecasts, governance changes, and ad hoc ORSA assessments. It further specifies technical provisioning hypotheses, investment governance under the 'prudent person' principle, and rigorous risk analysis for re concentration and counterparty default in run-off portfolios.
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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 NATIONAL BANK OF BELGIUM
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 undertakings (excluding small Belgian insurance undertakings referred to in Articles 275 and 276 or local undertakings referred to in Article 294 of the Solvency II Law), Branches established in Belgium of insurance or reinsurance undertakings 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 undertakings referred to in Article 275 of the Solvency II Law). For these undertakings, '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.
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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