Insurance

Question 1

Scope of IDD

Answer 1

level playing field, curbind further fragmentation in EU market, reduce burdens of cross-border entry

Question 2

Cross-selling

Answer 2

if product/service is not insurance based and is offered with insurance product, customer has to be informed about everything and given opportunity to buy components separately

Question 3

Solvency II, steps of lawmaking (lamfalussy process)

Answer 3

Level 1: Solvency II
Level 2: implementing measures
Level 3: supervisory standards (not legally binding)
Level 4: evaluation: monitoring compliance bla

Question 4

Scope of Solvency II

Answer 4

life and non-life insurance, reinsurance headquartered in EU

Exceptions: insurances in statutory system (controlled by other gov. bodies), very small insurances, pension funds

Question 5

Solvency II pillars

Answer 5

1) quant requiremnts: measurement of assets, liab, capital
2) qualitatibe req: effective risk mgmt system
3) transparency requirements: reporting, disclosure

Question 6

SII quant req.

Answer 6

1) measure solvency with total balance sheet approach (on market basis)
2) calculation of MCR and SCR. breach of SCR ->intensified supervision take measures to meet SCR. breach of MCR -> leave market unless MCR is met soon
3) investment management

Question 7

S II qual. req.

Answer 7

1) fit and proper people
2) functions/system of governance: need risk mgmt (ORSA: own risk and solvency assessment), internal control, internal audit, actuarial function
3) outsourcing
4) remuneration

Question 8

ORSA

Answer 8

own risk and solvency assessment: function both as internal assessment and supervisory tool. includes quant AND qual risks

Question 9

Remuneration policy principles

Answer 9

suppoer long term interest
clear and transparent
for etire orginazional structure with focus on mgmt and risk takers
variablec´components linked to ongterm interest