The freedom of establishment is the possibility for an insurance undertaking licensed in an EEA Member State to provide insurance services on the territory of another EEA Member State from a permanent entity located in the host country (e.g. branch, …).

The freedom to provide services is the possibility for an insurance undertaking licensed in an EEA Member State to provide its insurance services on the territory of another EEA Member State without permanent establishment.

Non-exhaustive list of general good rules concerning the performance of insurance and reinsurance distribution activities in France (article 11 of directive UE 2016/97 of 20 January 2016)

Without prejudice of applicable conflict-of-laws rules, the performance of insurance and reinsurance distribution activities in France (understood as referring to the territory of Metropolitan France, French overseas departments and regions (“DROM”)  and Saint-Martin by distributors registered in another State which is a party to the Agreement on the European Economic Area is governed by the general good rules listed below, for those which specifically concern them and which are not subject to coordination between member States of the European Union.

This list is indicative and without prejudice to other general good rules, codified or not, applicable to the performance of any activity in France. It is up to distributors to know about the provisions that would be applicable to them and their possible subsequent modifications.”

Attention point on non-life cross border insurance business of a long term nature and its supervision

EIOPA published, 21 December 2018, an Opinion (https://eiopa.europa.eu/Publications/Opinions/2018-12-21%20OpinionNon-LifeCross-BorderInsuranceBusinessSigned.pdf), highlighting the prudential requirements related to such activities and, in the context of cross border business, the need for all parties involved to be aware of the local specificities.
The opinion sets out EIOPA’s expectations on technical provisions, governance matters and supervisory review process and collaboration between authorities.
The Opinion more specifically deals with French Construction Defects Insurance and Italian Medical Malpractice.

ACPR draws the attention on European insurers intending to practice in France, or practicing in France in the those areas, on this Opinion

Notification for a request about freedom to provide service and/or freedom of establishment.

Instruction n° 2017-I-20 related to documents required for carrying out insurance business in another EEA State and annex.

Files must be post on the Authorisation Portal at the following address: https://acpr-autorisations.banque-france.fr/.

Notifications may give rise to requests for clarification or additional information (cf decision EIOPA-BoS-17/014 30th january 2017 paragraphe 3.1 .1 and paragraphe 3.2 1).

The ACPR must immediately process the incoming passports notifications under freedom to provide services and has a two months period in case of freedom establishment (branch creation).This period runs from the date of receipt of the complete file.

Authorisations required for covering "statutory" risks

As stated in the ACPR's 2013 annual report, the Authority considers that the offer to hedge the so-called "statutory" risks, i.e. corresponding to the coverage of local authorities against "contingency" type risks affecting their employees they should compensate, requires licences in classes 1, 2, 20 and 21 for insurance undertakings authorised in France .

The ACPR has been informed, notably by local authorities, of offers to hedge "statutory risks" issued by insurance undertakings operating in France under the freedom of establishment or freedom to provide services, which do not have such authorisations.

In this context, the ACPR wants to inform all the concerned stakeholders that  as regards actors operating in France under the freedom of establishment or freedom to provide services, the competent authority of the home Member State is responsible for the authorisation. However, the ACPR informed the concerned competent authorities of its analysis  regarding  the authorisations required to insure this type of risk and referred the matter to the European Insurance and Occupational Pensions Authority (EIOPA) for mediation, in application of provisions of Article 31 of Regulation (EU) No 1094/2010 of 24 November 2010.

Pending the conclusions of this mediation, the ACPR recalls that, from a technical point of view, and on the basis of its economic reality, the original hazard relating to so-called "statutory" risks, is a risk of death, disability or incapacity, which affects the community agent.

Under these conditions, the ACPR confirms that a licence in classes 1, 2, 20 and 21 enables to ensure an adequate level of prudential requirements with regard to the risks covered.