AI Summary of Article 13 Definitions
This Directive sets forth definitions critical for understanding various types of insurance and reinsurance undertakings, including their classifications as insurance, captive, and third-country undertakings. It establishes the concept of home and host Member States, delineating the jurisdictions relevant to different insurance functions. Additionally, it outlines roles and responsibilities of supervisory authorities and provides clarity on terms like branch, establishment, and member state definitions related to insurance risk.
A comprehensive framework for risk categories is presented, identifying operational, credit, market, and liquidity risks, among others. The document further defines key regulatory terms such as controlled entities, small and non-complex undertakings, and sustainability risks and factors, establishing a robust foundation for regulatory compliance in the insurance sector.
Article 13 Definitions
For the purposes of this Directive, the following definitions shall apply:
(1) "insurance undertaking" means a direct life or non-life insurance undertaking which has received authorisation in accordance with Article 14;
(2) "captive insurance undertaking" means an insurance undertaking, owned either by a financial undertaking other than an insurance or reinsurance undertaking or a group of insurance or reinsurance undertakings within the meaning of Article 212(1)(c) or by a non-financial undertaking, the purpose of which is to provide insurance cover exclusively for the risks of the undertaking or undertakings to which it belongs or of an undertaking or undertakings of the group of which it is a member;
(3) "third-country insurance undertaking" means an undertaking which would require authorisation as an insurance undertaking in accordance with Article 14 if its head office were situated in the Community;
(4) "reinsurance undertaking" means an undertaking which has received authorisation in accordance with Article 14 to pursue reinsurance activities;