Topic Governance BaFin publishes Circular on Minimum Requirements on the System of Governance of Insurance Undertakings
The circular on Minimum Requirements under Supervisory Law on the System of Governance of Insurance Undertakings (Aufsichtsrechtliche Mindestanforderungen an die Geschäftsorganisation von Versicherungsunternehmen – MaGo) is now available in English.
It summarises various minimum requirements which BaFin has formulated on the basis of its interpretation of the revised Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG) and the Commission Delegated Regulation 2015/35 of the Solvency II Directive. The circular replaces the circular on Minimum Requirements for Risk Management in Insurance Undertakings (Mindestanforderungen an das Risikomanagement VA – MaRisk VA), which was revoked at the end of 2015.
The objective of the MaGo is to bring together overarching aspects of governance without repeating the requirements of the VAG, the Delegated Regulation and the Guidelines on the System of Governance of the European Insurance and Occupational Pensions Authority (EIOPA). In particular, the circular explains key terms such as "proportionality" or management/supervisory board/body. Initial practical experiences with the new supervisory regime Solvency II were taken into account. The MaGo are addressed to all undertakings subject to the requirements of Solvency II.