Insurance Act- which will be further refined
Ladder of Actions for insurance supervision
The Insurance Act (which will be further refined based on the upcoming Solvency II
requirements) provides BaFin with a wide range of measures from both the prudential and
consumer protection perspectives. These measures, however, have not been translated into an
agreed formal “ladder of actions” to guide interventions for different types of identified
problems.
For the same reasons as the ones mentioned above for banking, BaFin should
consider adopting such a ladder for insurance supervision as well. The banking ladder could
serve as a starting point, but it is important to tailor the insurance ladder to the specific nature
of insurance supervision and regulations, as well as to the diversity of insurance entities
operating in Germany and hence the range of issues that may arise.
EU Forecast
euf:ba.18.j:104/nws-01