Front Matter Page
IMF Country Report No. 16/192
GERMANY: FINANCIAL SECTOR ASSESSMENT PROGRAM: INSURANCE SECTOR SUPERVISION—TECHNICAL NOTE
June 2016
This Technical Note on Insurance Sector Supervision on Germany was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in June 2016.
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Front Matter Page
GERMANY: FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE: INSURANCE SECTOR SUPERVISION
June 2016
Prepared By
Monetary and Capital Markets Department
This Technical Note was prepared in the context of an IMF Financial Sector Assessment Program (FSAP) mission in Germany during November 2015 led by Ms. Michaela Erbenova. It contains technical analysis and detailed information underpinning the FSAP’s findings and recommendations. Further information on the FSAP can be found at http://www.imf.org/external/np/fsap/fssa.aspx
Contents
Glossary
EXECUTIVE SUMMARY
INTRODUCTION
A. Scope and Approach of this Note
B. Overview—Institutional and Market Setting
C. Market Structure, Insurance Products and Industry Performance
MAIN FINDINGS
A. Key Risks and Vulnerabilities
B. The Implementation of Solvency II
C. The Supervision of Groups
RECOMMENDATIONS
A. Key Recommendations
B. Other Recommendations
BOXES
1. Long-Term Guarantee and Transitional Measures
2. The Relationship Between Solvency II and National GAAP in Germany
FIGURES
1. Evidence of Searching for Yield
2. Investment in Funds by German Insurers
3. Share of Products with Minimum Guarantees
4. Duration of Liabilities
5. Estimation of Additional Premium Reserve (ZZR)
6. Liabilities and Claims of German Banks Toward Insurers in the EU 2004–2015
TABLE
1. Main Recommendations
ANNEX
I. Detailed Analysis of Selected ICPs
Glossary
| ALM |
Asset Liability Management |
| BaFin |
Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) |
| BMF |
Federal Ministry of Finance |
| CMG |
Crisis Management Group |
| DeckRV |
Mathematical provisions ordinance (Deckungsrückstellungsverordnung) |
| G-SIIs |
Global Systemically Important Insurers |
| EIOPA |
European Insurance and Occupational Pensions Authority |
| EMIR |
European Market Infrastructure Regulation |
| FSAP |
Financial Sector Assessment Program |
| FSC |
Financial Stability Committee |
| GAAP |
Generally Accepted Accounting Principles |
| HLA |
Higher Loss Absorbency capacity |
| IAIS |
International Association of Insurance Supervisors |
| ICPs |
Insurance Core Principles |
| IHK |
Chambers of Industry and Commerce |
| LTG |
Long-Term Guarantees |
| MCR |
Minimum Capital Requirement |
| MMoU |
Multilateral Memorandum of Understanding on Cooperation and Information Exchange |
| MoU |
Memorandum of Understanding |
| ORSA |
Own Risk and Solvency Assessment |
| P&C |
Property and Casualty |
| QRT |
Quantitative Reporting Template |
| SCR |
Solvency Capital Requirement |
| VAG |
Insurance Supervision Act (Versicherungsaufsichtsgesetz) |
| VVG |
Insurance Contracts Act (Versicherungsvertragsgesetz) |
| XBRL |
eXtensible Business Reporting Language |
| ZZR |
Additional Interest Provisions (Zinszusatzreserve) |