Solvency II Art.14-23: Arts 14, 18, 23 Obtain prior authorisation and meet the conditions, with a scheme of operations

What does Art.14-23 require?

Direct insurance or reinsurance business may only be taken up after authorisation by the home supervisory authority, granted per class of insurance and valid across the Union. The applicant must limit its objects to insurance (or reinsurance and related operations), submit a scheme of operations, hold eligible basic own funds covering the absolute floor of the Minimum Capital Requirement, show it will be able to cover the SCR and MCR going forward and comply with the system of governance, and, for motor liability, name its claims representatives. The scheme covers the risks to be covered, reinsurance principles, the own-fund items covering the MCR floor, set-up costs and, for the first three years, a forecast balance sheet, SCR and MCR estimates and the resources to cover technical provisions and capital requirements. Extending to new classes requires a new scheme and proof of SCR and MCR cover.