Insurance: supplementary supervision of insurance undertakings belonging to a group

The Committee has issued a favourable Opinion, subject to the following reservations: - the definition of participation should correspond to economic reality; - insurance holding companies should not be subject to such strict checks for detecting the creation of fictitious capital; - the treatment of reinsurance holdings should be left up to the Member States; - as regards adjusted solvency checks, all the elements of own funds and the elements for valuing the assets of subsidiaries allowed at "solo" supervision level should be recognized; - the cost of additional supervision should be proportional to any prudential risks sustained, and not jeopardize the competitiveness of the European insurance industry. The amendments proposed in the fourth part of the Opinion are based on the desire to reduce the difficulties with which the European insurance industry would certainly be faced if the points raised were not clarified.�