French Insurance Code

With regard to investment risk, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 must be able to demonstrate that they comply at group level with the provisions of Chapter III of this Title.

The Group risk management function referred to in Article L. 356-18 is structured in such a way as to facilitate the implementation of the risk management system referred to in Article L. 356-19.

Where external credit assessments are used to calculate prudential technical provisions and the Solvency Capital Requirement, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall verify, as part of their risk management at group level, the appropriateness of these assessments, using additional assessments where necessary.

The risk management function referred to in Article R. 356-38 of groups which use a partial or full internal model approved in accordance with Articles R. 356-20 to R. 356-20-3 to calculate the group’s solvency covers the tasks of designing, implementing, testing and validating the internal model, monitoring the documentation of this internal model and any changes made to it, analysing the performance of this model and producing summary reports…

The internal risk and solvency assessment referred to in Article L. 356-19 shall cover at least: a) The overall solvency requirement, taking into account the specific risk profile, approved risk tolerance limits and business strategy of the group; b) Ongoing compliance with capital requirements at group level; c) The difference between the group’s risk profile and the assumptions underlying the Solvency Capital Requirement calculated in accordance with Articles R. 356-19…

I.- In order to assess the overall solvency requirement referred to in Article R. 356-41, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall implement procedures which are proportionate to the nature, scale and complexity of the risks inherent in the group’s business and which enable them to identify and assess the risks to which the group is exposed, or…

Where the equalisation adjustment referred to in Article R. 351-4, the volatility adjustment referred to in Article R. 351-6 or the transitional measures referred to in Articles L. 351-4 and L. 351-5 are applied, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall assess the group’s compliance with the capital requirements referred to in Article R. 356-41 both taking into…

Where an internal model is used to calculate Group solvency, the internal risk and solvency assessment reconciles the internal risk measures with the required solvency capital.

Internal risk and solvency assessment is an integral part of the Group’s business strategy. It is systematically taken into account in the group’s strategic decisions. The participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall carry out the assessment referred to in Article L. 356-19 at least once a year and in the event of any significant change in the group’s…

The Autorité de contrôle prudentiel et de résolution, in its capacity as group supervisor, shall decide on the authorisation provided for in the fifth paragraph of Article L. 356-19 within five months.