Answers to the European Commission on the ... - Eiopa - Europa

off all contracts;
• <strong>to</strong> facilitate a transfer (if necessary in some Member States a
compulsory transfer) of <strong>the</strong> portfolio and policy obligations of a
failing insurer <strong>to</strong> ano<strong>the</strong>r insurer who is willing <strong>to</strong> accept this
transfer;
(2) or <strong>to</strong> petition for <strong>the</strong> insurer <strong>to</strong> be wound up; or, if allowed by
<strong>the</strong> national corporate law, <strong>to</strong> petition for a reduction in <strong>the</strong>
insurers’ liabilities under its insurance contracts as an
alternative <strong>to</strong> winding-up, or <strong>to</strong> promote a scheme of
arrangement whereby policyholders agree <strong>to</strong> compromise,
commute, buy back or o<strong>the</strong>rwise accept reduced benefits under
<strong>the</strong>ir insurance contracts.
Powers of <strong>the</strong> supervisory authorities over third parties <strong>to</strong> whom an insurance
undertaking has outsourced key activities
14.57 Supervisory authorities should have <strong>the</strong> power <strong>to</strong>:
Reporting powers
• obtain all material information from relevant third parties,
especially <strong>to</strong> obtain information from insurance or reinsurance
undertakings from whom or <strong>to</strong> whom <strong>the</strong> undertaking has ceded
business, and from all persons who have had dealings with <strong>the</strong>
insurance undertaking or which have or might reasonably be
expected <strong>to</strong> have information as <strong>to</strong> <strong>the</strong> insurance undertakings’
affairs;
• extend on-site inspections <strong>to</strong> obtain information from
intermediaries and companies that are exercising outsourced
functions on behalf of <strong>the</strong> insurance undertaking;
• demand oversight and clear accountability for all outsourced
functions at least equal <strong>to</strong> <strong>the</strong> level achieved if <strong>the</strong> functions
were performed internally and subject <strong>to</strong> <strong>the</strong> normal standards
for internal controls;
CEIOPS is aware that supervisory powers should in general be
exercised in accordance with all laws applicable <strong>to</strong> an insurance
undertaking, including national and international data protection
laws and company laws.
14.58 Supervisory authorities should have <strong>the</strong> power <strong>to</strong> demand that
undertakings inform supervisory authorities immediately if solvency
control levels are breached or if undertakings expect <strong>the</strong>m <strong>to</strong> be
breached. This reporting obligation should also apply <strong>to</strong> persons in key
functions and <strong>to</strong> an insurer’s external audi<strong>to</strong>rs, though with <strong>the</strong> proviso
that notification by <strong>the</strong> undertaking itself is adequate. Fur<strong>the</strong>r
requirements will be outlined in <strong>the</strong> answer <strong>to</strong> <strong>the</strong> CfA 21 on
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