Instruction No. 2017-I-20 of November 23, 2017 replacing Instruction No. 2015-I-16 regarding documents to be produced for exercising insurance activities via freedom of establishment or freedom to provide services in another EEA State

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2017-I-20 of November 23, 2017 replacing Instruction No. 2015-I-16 regarding documents to be produced in the context of exercising an insurance activity via freedom of establishment or freedom to provide services in another EEA State modified by Instruction No. 2019-I-15 of April 18, 2019 and Instruction No. 2024-I-11 of October 21, 2024

The Prudential Control and Resolution Authority, Having regard to the Monetary and Financial Code, particularly Articles L. 612-14 and R. 612-21; Having regard to the Insurance Code, particularly Articles L. 321-11 and R. 321-32; Having regard to the Mutual Code, particularly Article L. 211-8-2; Having regard to the Social Security Code, particularly Article L. 931-4-2; Having regard to Ordinance No. 2015-378 of April 2, 2015; Having regard to Decree No. 2015-513 of May 7, 2015; Having regard to the opinion of the Prudential Affairs Consultative Committee of November 10, 2017; Having regard to the EIOPA BoS-17/014 decision of January 30, 2017,

DECIDES

Article 1:
Any insurance entity subject to the supervision of the ACPR planning to:

• either open a branch to exercise the freedom of establishment in another Member State of the European Union or another State party to the Agreement on the European Economic Area,
• or exercise activities under the freedom to provide services on the territory of another Member State of the European Union or another State party to the Agreement on the European Economic Area,

must provide the Prudential Control and Resolution Authority with the documents and information mentioned in Articles 2 and 3 of this instruction, using the form attached to this instruction.

The information to be transmitted must reflect the nature, scale, and complexity of the operations envisaged by the entity.

Article 2:
In matters of freedom of establishment, the documents and information mentioned in Article 1 must include:

a) The name and address of the entity's registered office, as well as its Legal Entity Identifier (LEI);

b) The address of the branch in the host country, to which the authorities of the host Member State may request or send documents, and notably communicate with the general representative of this branch;

c) The name and email address of the branch's general representative, as well as a description of their powers;

d) The form appearing in Annex 1 of Instruction No. 2017-I-08 and aimed at assessing the honorability, competence, and experience of the general representative; for the purposes of this instruction, the term "general representative" should be understood where "effective manager" is mentioned, and "branch" where "company" is mentioned;

e) The organizational structure of the branch, including all persons who effectively manage this branch or are responsible for key functions within the entity on behalf of this branch;

f) A summary of the entity's governance system, including the risk management system put in place to ensure the proper conduct of the branch's activities; as well as a description of the dedicated internal control mechanism (specific procedures and processes) and a description of the internal responsibilities in charge of steering and monitoring the activity and the associated competencies;

g) A program relating to the envisaged activity comprising, at a minimum, the following elements:

• the list of branches and sub-branches of activities that the insurance entity proposes to practice;

• the nature of the risks or commitments that the entity proposes to guarantee;

• how the branch's activities will fit into the entity's corporate strategy;

• where applicable, the guiding principles regarding reinsurance and retrocession concerning the branch's activities;

• a description of the administrative and commercial organization and the personnel and material resources available to the branch;

• for the first three financial years of the branch:

• activity forecasts (notably premiums or contributions, claims);

• Forecasts relating to the installation costs of administrative services and the organization adopted to secure the branch's activities, as well as the financial resources intended to meet them;

• Forecasts relating to management costs other than installation costs, notably general overheads and commissions;

• any available information on the planned distribution channels, significant outsourcing contracts, and partners that will be mobilized in the host Member State;

h) In the case where the entity proposes to cover the risks defined in Branch 10, with the exception of carrier liability, a declaration of membership in the national office and the national guarantee fund of the Member State on whose territory it intends to operate, as well as, where applicable, the name and address of the representative for claims management that it designates in that Member State within the meaning of Article 18.1 (h) of the Solvency II Directive;

i) In the case where the entity proposes to cover the risks defined in Branch 17 (legal protection), the option chosen among those set out in Article 200 of the Solvency II Directive (Article L. 322-2-3 of the Insurance Code and Article L. 224-7 of the Mutual Code);

j) In the case where the entity proposes to cover the risks defined in Branch 18 within the meaning of Part A of Annex I of the Solvency II Directive, the company responsible for assistance services or the means that the company has for providing the promised assistance.

Article 3:

In matters of freedom to provide services, the documents and information mentioned in Article 1 must include:

a) The name and address of the insurance entity's registered office, as well as its Legal Entity Identifier (LEI); b) The Member State on whose territory the entity intends to operate under the freedom to provide services; c) In the case where the entity intends to operate under the freedom to provide services through a branch established in a State other than that in which its registered office is located, the designation of the State on whose territory this branch is established, as well as the name and address of this branch and the identity of its general representative; d) A program relating to the envisaged activity comprising, at a minimum, the following elements:

• the list of branches and sub-branches of activities that the insurance entity proposes to practice;
• the nature of the risks or commitments that the entity proposes to guarantee;
• any information relating to third parties or any party involved locally in the underwriting activities conducted within the host Member State;
• the identity of the person in charge, within the insurance entity, of handling complaints related to the activity exercised under the freedom to provide services;
• a description of the dedicated internal control mechanism (specific procedures and processes) as well as a description of the internal responsibilities in charge of steering and monitoring the activity and the associated competencies;
• a description of the means implemented by the entity for the operations it intends to carry out;
• a description of activity forecasts for three financial years (forecasts relating to premiums or contributions and claims);
• where applicable, the indication that the insurance entity will exercise its activity exclusively, or almost exclusively, in the host Member State. In this case, the following must be communicated:
• a summary of the organization of the insurance entity's governance (notably exposing the identity of effective managers and heads of key functions), including in particular the risk management system put in place;
• any available information resulting from exchanges with the entity concerning its business strategy and how its activity exercised via freedom to provide services fits into this strategy.

e) In the case where the entity proposes to cover the risks defined in Branch 10, with the exception of carrier liability, a declaration of membership in the national office and the national guarantee fund of the Member State on whose territory it intends to operate, as well as, where applicable, the name and address of the representative for claims management that it designates in that Member State within the meaning of Article 18.1 (h) of the Solvency II Directive;

f) In the case where the entity proposes to cover the risks defined in Branch 17 (legal protection), the option chosen among those set out in Article 200 of the Solvency II Directive (Article L. 322-2-3 of the Insurance Code and Article L. 224-7 of the Mutual Code);

g) In the case where the entity proposes to cover the risks defined in Branch No. 18 within the meaning of Part A of Annex I of the Solvency II Directive, the company responsible for assistance services or the means that the Company has for providing the promised assistance.

Article 4:

Any project to modify the nature or conditions of exercising activities under freedom of establishment or freedom to provide services that have been authorized must be notified to the Prudential Control and Resolution Authority, accompanied by those documents mentioned in this instruction that are affected by the project of modification, in accordance with paragraph II of Article R. 321-32 of the Insurance Code.

Article 5:

This file must be sent in electronic format to the Prudential Control and Resolution Authority by depositing it at the following address:
https://acpr-portail.banque-france.fr

Article 6:

This instruction repeals Instruction No. 2015-I-16 and enters into force on the day of its publication.

References to Instruction No. 2015-I-16 in other instructions are replaced by references to this instruction.

Paris, November 23, 2017
For the Sectoral Sub-Committee of Insurance
The President,
[Bernard DELAS]