Commission Implementing Regulation (EU) 2023/894 of 4 April 2023 laying down implementing technical standards for the application of Directive 2009/138/EC of the European Parliament and the Council with regard to the templates for the submission by insurance and reinsurance undertakings to their supervisory authorities of information necessary for their supervision and repealing Implementing Regulation (EU) 2015/2450 (Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Directive 2009/138/EC of 25 November 2009 of the European Parliament and of the Council on the taking up and pursuit of the business of Insurance and Reinsurance (Solvency II)⁽¹⁾, and in particular Article 35(10), third subparagraph, Article 244(6), third subparagraph, and Article 245(6), second subparagraph, thereof,

Whereas:

1. Information received through reporting is essential for risk based supervision and policyholder protection. To this end, supervisors need to receive meaningful data within reasonable timelines. In order to ensure that the reporting requirements stay up to date and reflect emerging risks and evolving practices, it is necessary to substantially revise reporting templates provided by Implementing Regulation (EU) 2015/2450. This requires changes to numerous templates, the addition of new templates and the removal of obsolete ones. Given the extent of the changes, it is appropriate to repeal Implementing Regulation (EU) 2015/2450.

2. Cross border business is not intrinsically riskier but it adds another layer of complexity. Effective supervision should ensure that all policyholders and beneficiaries receive equal treatment regardless of their nationality or place of residence. With a view to facilitating the achievement of this objective the existing cross-border templates are replaced by new reporting templates that consolidate the information requirement which captures information on premiums, claims and expenses by both location of underwriting and location of risk.

3. It is also necessary to establish a certain minimum legal requirement as regards the extent of the information on climate change related risks reported to supervisory authorities. Undertakings should provide an overview on their respective share of investments exposed to climate change-related transition and physical risk to supervisory authorities.

4. There is a lack of granularity regarding the information for non-life products, which is detrimental for policyholder protection. Therefore, supervisors should have clear information on product level category. To this end, a new template on non-life obligation analysis is introduced for reporting by line of business with a few exceptions reported by product categories.

5. As insurance or reinsurance undertakings may increasingly underwrite cyber risk, supervisors should incorporate considerations on this emerging risk in their supervisory activities. In order to facilitate such activities, a new reporting template on cyber underwriting risk is included.

6. As part of the supervisory review process, it is important for supervisory authorities to be able to monitor the adequacy of internal models. Partial and full internal models allow to capture the individual risk of a company better and Directive 2009/138/EC allows insurance and reinsurance undertakings to use them for determining capital requirements without limitations stemming from the standard formula. However, assessments based on non-standardized information make supervision more difficult. Supervisory authorities should therefore benefit from new templates and clarified instructions, which support sensible data production.

7. Reporting requirements should not be excessively burdensome for undertakings. To that end, it is necessary to specify how several reporting requirements apply in a proportionate way without jeopardizing the quality of data to be provided by the undertakings.

8. Captive insurance undertakings and captive reinsurance undertakings which only cover risks associated with the industrial or commercial group to which they belong, present a particular risk profile that should be taken into account when defining reporting requirements. Captive insurance undertakings and captive reinsurance undertakings should therefore be able to benefit from specific risk-based reporting arrangements.

9. The provisions of this Regulation are closely linked to each other, since they all deal with the submission of information from insurance and reinsurance undertakings and groups to the supervisory authorities. To ensure coherence between those provisions, which should enter into force at the same time, to facilitate a comprehensive understanding of those provisions and to ensure easy access to them by persons subject to the reporting obligations, including investors not established in the Union, it is desirable to include all the implementing technical standards required by Article 35(10), Article 244(6) and Article 245(6) of Directive 2009/138/EC in a single Regulation.

10. This Regulation is based on the draft implementing technical standards submitted to the Commission by the European Insurance and Occupational Pensions Authority.

11. The European Insurance and Occupational Pensions Authority has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the advice of the Insurance and Reinsurance Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council⁽²⁾.

12. Undertakings should be given sufficient time to implement the updated reporting requirements. The date of application of this Regulation should therefore be deferred,

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