Regulatory Alerts2023-02-20
Added · Updated
Solvency II Basic authorisation
Small insurers with limited risk exposure may apply for Basic authorisation instead of full Solvency II authorization if they meet specific financial thresholds, including gross annual premium income not exceeding EUR 5,400,000 and technical provisions not exceeding EUR 26,600,000. Non-life insurers are prohibited from using this route if they operate in high-risk segments such as motor vehicle, aircraft, or ship liability, while life insurers face no such segment restrictions. Authorization under this regime excludes the EU passport, preventing cross-border service provision within the EU, and insurers must transition to Solvency II authorization only if they exceed the defined limits for three consecutive years.