Regulatory Alerts2016-08-31 | Conduct of reinsurance business in Germany by insurance undertakings situated in a third countryInterpretative Decision on Conduct of Reinsurance Business in Germany by Third-Country Undertakings
The German supervisory authority issued this interpretative decision to clarify authorization exemptions and market-targeting criteria for third-country insurers conducting reinsurance business in Germany. It establishes that undertakings with equivalent solvency regimes may operate cross-border without a German branch, provided they do not deliberately target the domestic market or conclude contracts by correspondence. Furthermore, it mandates comprehensive risk management and solvency capital assessments for third-country reinsurance exposures while empowering regulators to order immediate business cessation and impose criminal penalties for unauthorized operations.
Share