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AI Summary of Article 163 Scheme of operations of the branch
The scheme of operations, as per Article 162(2)(h), mandates insurance undertakings to outline their risk coverage, reinsurance principles, and capital requirement forecasts based on projected balance sheets. This includes a comprehensive assessment of eligible own funds concerning the Solvency and Minimum Capital Requirements, alongside the estimated costs of administrative set-up and governance structure.
For the initial three financial years, a detailed balance sheet forecast and financial resource estimates are required, encompassing expenses, premiums, and claims, specifically tailored for both non-life and life insurance sectors.
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Article 163 Scheme of operations of the branch
1. The scheme of operations of the branch referred to in Article 162(2)(h) shall set out the following:
(a) the nature of the risks or commitments which the undertaking proposes to cover;
(b) the guiding principles as to reinsurance;
(c) estimates of the future Solvency Capital Requirement, as laid down in Chapter VI, Section 4, on the basis of a forecast balance sheet, as well as the calculation method used to derive those estimates;
(d) estimates of the future Minimum Capital Requirement, as laid down in Chapter VI, Section 5, on the basis of a forecast balance sheet, as well as the calculation method used to derive those estimates;
(e) the state of the eligible own funds and eligible basic own funds of the undertaking with respect to the Solvency Capital Requirement and Minimum Capital Requirement as referred to in Chapter VI, Sections 4 and 5;
(f) estimates of the cost of setting up the administrative services and the organisation for securing business, the financial resources intended to meet those costs and, where the risks to be covered are classified under class 18 in Part A of Annex I, the resources available for the provision of the assistance;