Topic Authorisation Authorisation
Undertakings may not transact insurance business in Germany unless or until they have authorisation from BaFin. If an undertaking having its registered office in Germany wishes to be allowed to engage in insurance business, it must meet various conditions.
The undertaking must be a German public limited company (Aktiengesellschaft), including a European Company (SE), a mutual society, a corporate body or an institution governed by public law. It must, among other things, provide evidence that it has a proper and effective business organisation which ensures sound and prudent management of the undertaking. It must also be able to prove that it has sufficient own funds to comply with the capital requirements.
If one EU/EEA country grants an insurer authorisation to carry on insurance business, the authorisation is valid in all EU/EEA states. After going through what is known as the notification procedure, an undertaking may carry on insurance business outside its home country via branches or through cross-border provision of services. Therefore, any authorisation to carry on business granted in another EU or EEA member state is also valid in Germany.
Insurers domiciled in a non-member country that intend to take up business in Germany are subject to authorisation from BaFin. To obtain such authorisation, a number of special provisions have to be observed. The undertakings are required, for example, to establish a branch in Germany and to appoint an authorised agent. The requirements related to the undertaking's financial adequacy are based on the scope of the business operated by the branch.