(1) The general principles of the supervision exercised by the Superintendent, based on Article 33 of the Law on Insurance and Reinsurance Business and Other Related Issues of 2016,as amended, (the "Law") are:

(a) Supervision is based on a predictive and proportionate approach, which focuses on the risks of insurance and reinsurance undertakings, and includes verifying, on an ongoing basis, the proper functioning of insurance and reinsurance activities and their compliance with supervisory provisions.

(b) Supervision includes an appropriate combination of offsite and onsite inspections.

(c) The Superintendent ensures the implementation of the requirements provided by the Law in a manner proportionate to the nature, complexity and scale of the risks inherent in the activities of insurance or reinsurance undertakings.

(d) The Superintendent exercises his supervisory powers in accordance with the relevant delegated acts, the regulatory technical standards and the implementing technical standards of the European Commission (EU).



(2) The basic responsibilities, functions and activities of the supervision exercised by the Superintendent is:

Part II of the Law:

(a) Granting, suspension or revocation of a license to conduct insurance or reinsurance business to insurance or reinsurance undertakings that fall under the jurisdiction of the Superintendent, in accordance with the provisions of the Law.

(b) Supervision of the operation of insurance and reinsurance undertakings, licensed by the Superintendent, and their compliance with their obligations under the provisions of the Law and any delegated acts or regulatory or implementing technical standards issued pursuant Directive 2009/138/EC, or Court decisions regarding their activities, in the interest of the insured and the beneficiaries of insurance.

(c) Cooperation with the supervisory authorities of other Member States or competent authorities of third countries for the purposes of implementing the Law, Directive 2009/138 / EC and any delegated acts or regulatory or implementing technical standards issued pursuant to Directive 2009/138/EC.

(d) Participation in the activities of the European Insurance and Occupational Pensions Authority (EIOPA), as well as in any other organisations or bodies set up in the European Union in relation to insurance or reinsurance or insurance distribution, as well as in any other international organisations dealing with these or other related issues.

(e) Exercise of any other power or competence conferred by the Law or any other law or Regulations issued pursuant to them and the imposition of the administrative fines provided for in the Law.

(f) Take any other measures necessary to ensure compliance with the laws, regulations and administrative provisions in force in the Republic and in the other Member States, where applicable, and to avoid or eliminate any anomaly which could affect the interests of the policyholders.

(g) Issuance of orders to regulate general or specific issues related to the implementation of the Law, other than those regulated by delegated acts or regulatory or implementing technical standards of the EU, as well as orders in accordance with the guidelines and recommendations within the meaning of the Law.

(h) Examine the potential impact of its decisions on the stability of the respective financial systems in the Republic and the Union, in particular in emergencies, taking into account the information available at the time.

(i) Financial supervision, which includes the verification, for all the activities of the insurance or reinsurance undertaking, of its solvency situation, of the provision of technical provisions, of its assets, of its eligible own funds and of the exercise of its operations in accordance with the sound insurance principles, as defined in paragraph (3) of Article 34, in accordance with the provisions of the Law and in accordance with the provisions adopted at Union level by Directive 2009/138/EC.

(j) The performance of his duties with transparency and responsibility, and the publication of the information provided in Article 35 of the Law.

(k) Participation in onsite inspections carried out by the supervisory authorities of the home Member State, in branches in the Republic of insurance or reinsurance undertakings authorised by another Member State.

(l) The requirement for insurance or reinsurance undertakings to submit information, and to collect it, for the purposes of supervision, and to monitor and evaluate it, in particular for the compliance of undertakings with the requirements concerning:
(i) their governance system, including their own risk assessment and solvency;
(ii) the technical provisions,
(iii) capital requirements,
(iv) investment rules,
(v) the quality and quantity of own funds, and
(vi) in the event that the insurance or reinsurance undertaking uses a full or partial internal model, continuing compliance with the requirements for full and partial internal models.


Part IV of the Law:
(a) Supervision of insurance and reinsurance undertakings at group level.

(b) Informing the European Banking Authority and / or EIOPA, depending on the group.

(c) Supervision of group solvency.

(d) Cooperation and exchange of information between the supervisory authorities involved.

(e) Supervision of intra-group transactions.


Part V of the Law:
(a) Take recovery measures on Cypriot insurance undertakings, without obstructing the commencement of liquidation proceedings, unless such liquidation is voluntary.

(b) Publication of measures.


Part VII of the Law:
Supervision of insurance and reinsurance companies which are exempt from the Law, based on Article 6.


Part VIII of the Law:
(a) Keeping Registers of Insurance Intermediaries and registering and deleting persons in these Registers.

(b) Supervision of distribution of insurance products.


Part IX of the Law:
(a) Collection of information necessary for the exercise of his responsibilities.

(b) Carrying out onsite inspections.

(c) Imposition of fines.