There have been two types of authorisation since the Solvency II Directive (2009/138/EC) entered into force. Insurers under the scope of the Solvency II regime require Solvency II authorisation, while limited risk insurers can apply for Basic authorisation only. They are, however, free to apply for Solvency II authorisation on a voluntary basis. Only the smallest non-life and funeral expenses and benefits in kind insurers are exempted from the authorisation requirement. The following key principles apply.
- All life and non-life insurance companies come under the scope of the Solvency II regime, unless they meet specific requirements, in which case they may qualify for Basic authorisation.
- Reinsurers always come under the scope of the Solvency II regime and must apply for Solvency II authorisation.
- Funeral expenses and benefits in kind insurers never come under the scope of the Solvency II, and can apply for Basic authorization.
You can use the flowchart to find out for which type of authorisation your company should apply.