Insurance supervision in FR Germany according to the law on insurance supervision and EU directives on solvency


More stringent legal regulation of the system of supervising financial services in Germany limits liberal view of the market. According to position of the EU Member States‘ governments, permanent stability of financial markets may not be left exclusively to the market laws. Adopted legislation and regulations show that the approach based on the principles and usage of indefinite legal terms have created supervision system subject to interpretation. As a consequence, space for involvement opens up for insurance companies together with risk of non-fulfillment of the supervising requirements. They will incur increased expense because of that. In order to set up a professional and consistent risk management system, qualified experts and effective IT systems are needed. Rules on financial supervision are “mixed” rules – combined civil and commercial legal rules with the administrative and constitutional rules. This becomes clear if said terms are taken into account, e.g. professionalism as a personal qualifying criteria for board of directors and supervisory board.