If a company does not respect the two amounts of capital required, the supervisor has to take action.<\/p>\n
Insurance companies have to put in place an adequate and transparent governance system with a clear allocation of responsibilities. They must have the administrative capacity to deal with different issues including risk management, compliance with the legislation, and internal audit.<\/p>\n
Insurance companies have to conduct their own risk and solvency assessment (ORSA) on a regular basis. This involves assessing the risk solvency needs in relation to their risk profiles, as well as their compliance with the financial resources required.<\/p>\n
The legislation sets out a \u2018Supervisory Review Process\u2019 (SRP) that enables supervisors to review and evaluate insurance companies\\’ compliance with the rules. The aim is to help supervisors to identify companies that may enter difficulties. Insurance companies also have to disclose information publicly.<\/p>\n
The competent authority must conduct supervisory reviews ensuring compliance with the requirements. There is a requirement for reporting to the market, consumer and supervisory authorities<\/p>\n
Additional capital requirements may be imposed following supervisory review where they depart to much from the assumptions of the solvency capital requirement.<\/p>\n
\n <\/div>\n\n","protected":false},"excerpt":{"rendered":"
Regulation and Prudential Financial and prudential supervision is the responsibility of the home state authorities. \u00a0They must monitor the entire business and must ensure that the requisite technical provisions are made, and that sound administrative and accounting procedures and controls are provided. There are separate detailed directives for life and non-life insurance.\u00a0 The conditions of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[128,131],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17831"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=17831"}],"version-history":[{"count":2,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17831\/revisions"}],"predecessor-version":[{"id":18351,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17831\/revisions\/18351"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=17831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=17831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=17831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}