PART 3Groups
CHAPTER 4Risk concentration and intra-group transactions
Supervision of risk concentration and intra-group transactions24.
(1)
Where the PRA is the group supervisor F1of a type of group referred to in regulation 9A(a) or (b), the PRA must—
(a)
identify the type of risks and intra-group transactions which insurance undertakings and reinsurance undertakings in the group must report to the PRA in all circumstances, taking into account the specific group and risk management structure of the group;
(b)
impose appropriate thresholds based on solvency capital requirements, or technical provisions, in order to identify which significant risk concentrations and significant intra-group transactions should be reported;
(c)
identify the insurance undertaking or reinsurance undertaking in the group responsible for submitting the information required under rules implementing Articles 244 and 245 of the Solvency 2 Directive where the group is not headed by an insurance undertaking or a reinsurance undertaking;
(d)
review the risk concentrations of the group and intra-group transactions at group level, and in particular monitor the possible risk of contagion within the group, the risk of a conflict of interests and the level or volume of risks.
F2(1A)
For the purposes of paragraph (1), references to insurance undertakings and reinsurance undertakings include a reference to Gibraltarian insurance undertakings and Gibraltarian reinsurance undertakings.
(2)
The PRA must consult the group F3and, where the FSC is concerned in the supervision of the group, the FSC whilst carrying out the activities referred to in sub-paragraphs (a) to (c) of paragraph 24.
(3)
Where the F4FSC is the group supervisor and the F5the FSC consults the PRA in relation to the supervision of risk concentration at group level or the reporting of intra-group transactions, the PRA must take into account the specific group and risk management structure of the group when giving its opinion about the type of risks to be reported.