4. Suitability requirements for the insurance and reinsurance sector

Regulatory framework:

  1. Articles 15, 94°, 40, 41, 45-47, 81-83, 93, 94 and 443 of the Law of 13 March 2016 on the legal status and supervision of insurance and reinsurance companies (hereinafter the “Insurance Supervision Law”) 
  2. Articles 258 and 273 of Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance.
  3. Royal Decree of 8 February 2022 approving the Regulation of the National Bank of Belgium of 9 November 2021 on the exercise of external functions by managers and persons responsible for independent control functions of regulated companies
  4. Royal Decree of 15 April 2018 approving the Regulation of the National Bank of Belgium of 6 February 2018 on expertise of heads of the compliance function 
  5. Communication NBB_2022_19 of 12 July 2022 on the exercise of external functions by managers and persons responsible for independent control functions of regulated companies
  6. Communication NBB_2021_04 of 19 January 2021 on the HIVE project and the digitalisation of the fit and proper process
  7. Circular NBB_2018_25 of 18 September 2018 on the suitability of directors, members of the management committee, responsible persons of independent control functions and senior managers of financial institutions (the circular introducing this Manual)
  8. Circular NBB_2016_31 on the expectations of the National Bank of Belgium regarding the governance system for the insurance and reinsurance sector (updated several times) 
  9. Circular NBB_2017_21 of 7 July 2017 on loans, credits and guarantees to managers, shareholders and related persons 
  10. EIOPA Guidelines of 1 January 2014 on system of governance (guidelines 11 to 14) 
  11. EIOPA Decision of 10 June 2021 on the collaboration of the insurance supervisory authorities

4:1 The Insurance Supervision Law, which transposes the Solvency II Directive[1], and Delegated Regulation 2015/35[2] contain a number of provisions on the skills and professional integrity of managers and persons responsible for independent control functions of insurance or reinsurance companies. These provisions are explained and clarified by EIOPA in its Guidelines on system of governance (hereinafter the “EIOPA Guidelines”). The fit & proper section of those guidelines is transposed into the Belgian regulatory framework through this Manual, on which the NBB relies for its suitability assessments. This Manual should be read in conjunction with Circular NBB_2016_31 on the expectations of the National Bank of Belgium regarding the governance system for the insurance and reinsurance sector (hereinafter “Circular NBB_2016_31”), which transposes the governance aspects of the EIOPA Guidelines not related to fit & proper.

[1] Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance.

[2] Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance.