Twitter Logo Youtube Circle Icon LinkedIn Icon

Ireland

The Legal 500 Hall of Fame Icon The Legal 500 Hall of Fame highlights individuals who have received constant praise by their clients for continued excellence. The Hall of Fame highlights, to clients, the law firm partners who are at the pinnacle of the profession. In Europe, Middle East and Africa, the criteria for entry is to have been recognised by The Legal 500 as one of the elite leading lawyers for seven consecutive years. These partners are highlighted below and throughout the editorial.
Click here for more details

Ireland > Legal Developments > Law firm and leading lawyer rankings

Editorial

Commission Proposes Directive on Reinsurance

In April, 2004 the European Commission presented its proposal for a directive on reinsurance, which is intended to provide a framework for cross-border operations of reinsurance undertakings on the basis of supervision by home state competent authorities. The supervisory function must be exercised in line with provisions which will be applicable to all Member States.

The proposal is a "fast track" solution for reinsurance pending proposals covering the insurance industry as a whole under the long-term "Solvency II" project (which is a wide ranging review of solvency in the insurance sector based on the approach taken under Basel II).

The key features of the proposed directive are:

(a) A single passport for reinsurers and a one-stop licensing system.
(b) Prudential rules set out in the proposed Directive include:

  • amount(s) to be set aside by reinsurer in order to enable it to meet its contractual commitments,
  • rules for investing such amount(s),
  • minimum capital and solvency requirements,
  • rules on measures to be adopted by regulators if re-insurers are in financial difficulties.

(c) International aspects - the proposed Directive is in line with the ongoing reinsurance supervision project being carried out by the International Association of Insurance Supervisors (IAIS) of which all Member States and the European Commission are members;
(d) Consultation and impact assessment - the consultation process showed that there is a need for rapid action in order to set up a regulatory regime for reinsurance as soon as possible without waiting for proposals under the long-term project "Solvency II". The proposal has also undergone an extended impact assessment.

The proposal will now be discussed by the European Parliament and the Council under the co-decision procedure.

For further information, please contact any member of our Financial Services Team.

International Law Firm Networks

The Legal 500 Events

International Law Firm Networks