The issuance of administrative approval to insurers by the supervisory authorities
SITUATION BEFORE 2010
Accreditation of insurersavant 2010, the enchantment of insurers was issued by three representative bodies of the different State, varying according to the legal nature of the insurer:
- The approval of the companies governed by the Insurance Code was issued by the Insurance Companies Committee (CEA).
- The approval of the corporations governed by the Code of Mutuality was issued by the Minister responsible for the mutuality (or the prefect of the region, if the approval was requested only for health insurance).
- The approval of the corporations governed by the Social Security Code was issued by the Minister responsible for Social Security.
SITUATION AFTER 2010
ASSURANCE OF THE INSURANCEDEPUISE N ° 2010-76 of 21 January 2010 with the merger of the Accreditation and Control Authorities of the Bank and insurance within the CPA (Prudential Supervisory Authority), "Great Authority to enhance the effectiveness of our control system for the benefit of the general interest "(according to the words of Christine Lagarde), the approval of insurers will be issued by the department controlling, within the ACP, the sector insurance.
Conditions to obtain approval
For an insurer to obtain administrative approval in one or more branches of insurance, several conditions must be respected:
1) Leaders and directors must report their honorability and competence,
(2) The company must comply with the prudential rules concerning the terms of constitution. For example, the distribution of capital and the quality of the shareholding for public limited companies, the methods of establishing the settlement fund for mutual insurance companies must comply with the provisions governing them.
3) The company must prove that it has sufficient technical and financial resources
→ If the supervisory authority agrees to issue the administrative approval (or administrative approvals) requested by the insurer who made the request, this approval shall be granted through a decision published in the Official Journal.
Questioning of accreditation
Once granted, accreditation is not permanently attributed, but is subject to regular checks to verify legitimacy.
If the approval had to be questioned by the supervisory authorities, we then distinguish two cases:
1) The decidation of the approval,
2) The withdrawal of approval.
There are three main situations that can lead to the decidation of approval:
- The company asks and undertakes to no longer carry out any subscription in a branch for which it had been approved.
- The company did not have, in the year which followed the approval, subscriptions in a branch for which it was embellished.
- The company, while it is during the course of activity, did not have, in a branch for which it has been embellished, subscriptions for two consecutive exercises.
As for the withdrawal of approval, it can happen:
- if the company crosses a period of prolonged inactivity,
- if the company no longer satisfies the conditions of access to the approval,
- If the company has been submitted, as a result of the insufficiency of its credit guarantee, a financing or recovery plan and that it has not respected it.
- If the company seriously lacks the obligations imposed on it by the regulations (by refusing, for example, to ensure a risk presented by the central pricing office).
The withdrawal of approval of insurance companies as part of a portfolio transfer
Withdrawal Insurers The administrative time obtained by an insurance company can be removed during a portfolio transfer. We then distinguish two cases:
- the one where the transfer of portfolio comes for an approved company in France,
- the one where the transfer of portfolio comes for a company of the European Economic Area in the settlement plan or LPS.
In either case, any decision on withdrawal of approval must be reasoned precisely and notified to the enterprise as well as the interested supervisory authorities.
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