The Council adopted the Reinsurance Directive designed to establish a regulatory framework for reinsurance activities in the EU. The text of the Directive approved by the Council includes all the amendments made by the European Parliament at first reading. The directive follows the same harmonised approach already adopted in respect of direct insurance, ensuring mutual recognition of authorisations and control systems between member states.
The Directive requires that all reinsurance undertakings be authorised in their home Member State. To obtain that authorisation, they will need to meet strict requirements. Once they have done so, they will be free to carry out their activity anywhere in the EU through the single passport.
The Directive fills the gap in current European insurance legislation which does not provide for regulation of specialised reinsurers whilst activities of reinsurance carried out by direct insurers are subjected to regulation. Member States will have two years for complying with the directive, which will come into force the day after its publication in the EU official journal.
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