Solvency II Basic is a national regime for small insurance companies that fall outside the scope of the Solvency II Directive.
Barring a few exceptions, two groups of insurers fall outside the scope of the Solvency II regime due to their limited size or the sector in which they operate:
These two groups come under a national regime, which is referred to as Solvency II Basic. This regime is comparable to the Solvency II risk-based supervision regime, but more specifically tailored to small insurers with limited risks. The smallest insurers also fall outside this Basic regime.
Non-life and funeral services insurers with gross annual premium income not exceeding EUR 2,200,000, and annualised technical provisions not exceeding EUR 10,700,000, will fall outside the scope of DNB’s supervision provided they meet the requirements set in Section 1e, 1f and 1g of the Exemption Regulation under the Wft (Vrijstellingsregeling Wft). To protect consumers, the additional requirement has been included that these small insurers may not effect insurance providing cover in excess of EUR 14,000 per insured object or death. Small insurers falling outside DNB’s supervisory scope are required to disclose that they are not subject to supervision by DNB. However, these exempted insurers may still be subject to supervision by the Netherlands Authority for the Financial Markets (AFM). For more information, please consult our factsheet on the Exemption regulation.
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