BaFin imposes a capital surcharge on Signal Iduna life insurance due to IT deficiencies

BaFin imposes a capital surcharge on Signal Iduna life insurance due to IT deficiencies

According to a report by www.procontra-online.de, the Federal Financial Supervisory Authority (BaFin) has added a capital surcharge to the solvency capital requirement of Signal Iduna Lebensversicherung a.G. fixed. This occurred due to deficiencies in the insurer's business organization, particularly in the area of ​​IT. BaFin described these deficiencies as the reason for setting the capital premium because they theoretically increase the risk borne by the insurer.

According to BaFin, the orders against Signal Iduna have been in force since November 13th. The insurer must now pay a capital premium in order to meet the increased solvency capital requirement. Upon request, Signal Iduna stated that most of the identified deficiencies had already been addressed and the capital surcharge had been accepted. The insurer is confident that the deficiencies will be remedied soon.

This measure by BaFin shows that the supervisory authority will take stricter measures in the future if there are deficiencies in the business organization of insurance companies. BaFin sees this as additional security measures to cover risks, not as a penalty.

The determination of the capital surcharge and the public disclosure of the deficiencies may lead to a loss of confidence in Signal Iduna and possible financial consequences for the company. This could also affect the insurer’s competitiveness. The industry as a whole could be affected by stricter supervisory measures as BaFin signals that it will be more strict in monitoring insurance companies in the future.

Overall, BaFin's measure shows that the supervisory authority takes compliance with regulations and standards in the insurance industry seriously and is prepared to take consistent action in the event of deficiencies. This could lead to greater stability and security in the insurance market in the long term.