Question ID: 1874
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 180
Status: Final
Date of submission: 13 Jun 2019
Question
The Article 180(7) states:
"Exposures in the form of bonds and loans to a third country insurance or reinsurance undertaking for which a credit assessment by a nominated ECAI is not available..."
This is probably a more matter of language but I would like to ask for a clarification whether sentence "for which a credit assessment by a nominated ECAI is not available" refers to the (a) EXPOSURE or (b) THIRD COUNTRY INSURANCE.
In other words should I apply this article when:
(a) Exposure is to third country insurance where exposure has no credit assessment (regardless whether third country insurance has or has not credit assessment) or
(b) Exposure is to third country insurance where third country insurance has no credit assessment (regardless whether exposure itself has or has not credit assessment).
EIOPA answer
Article 180.7 of the Commission Delegated Regulation (EU) 2015/35 indicates a particular treatment for “Exposures in the form of bonds and loans to a third country insurance or reinsurance undertaking for which a credit assessment by a nominated ECAI is not available”. The absence of credit assessment concerns the exposure itself and not the counterparty.
Should the exposure benefit from a credit assessment by a nominated ECAI, article 176 of the aforementioned Delegated regulation should be applied.