Proposal for a Council Regulation (EC, Euratom) amending Regulation (EC, Euratom) No 58/97 concerning structural business statistics
Date: 1997-09-08
Institutions: European Commission
Subjects: data collection, insurance, insurance company, single market, statistics

COMMISSION OF THE EUROPEAN  COMMUNITIES 

* £* 

Brussels, 03.09.1997 
COM(97) 411  final 

97/0232 (CNS) 

Proposal for a 
COUNCIL REGULATION (EC, Euratom) 

amending Regulation (EC, Euratom) No 58/97 
concerning structural business statistics 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

(The  draft  Regulation  proposed  aims  at  complementing  Council  Regulation  (EC,  Euratom) 
No 58/97 concerning structural business statistics with a detailed module for structural statistics in 
insurance) 

PART ONE 

Application of the principle of subsidiarity 

(a)  What are the objectives  of the proposed  measures, and how do they relate to the 

Community's obligations? 

The  general  purpose  of  the  regulation  is  to  require  Member  States  to  provide 
Eurostat with comparable and harmonized statistical data relating to the insurance 
sector.  The  recent  developments  in  Community  monetary,  economic  and  social 
integration  require  information  to  support  the  development  and  appraisal  of 
initiatives and decisions. The development and appraisal of initiatives and decisions 
need  to  be  based  on  more  reliable,  exhaustive,  up-to-date  and  comparable 
statistics.  Statistical information on businesses is required for the follow-up  of the 
internal  market  (also  in  the frame of  the  Single  Market  Action  Plan)  and  the 
development  and  appraisal  of  a  large  number  of  EU  policies.  In  addition, 
businesses  themselves  need  information  on  the  business  cycle  and  its  impact  in 
their  sector  in national  and international  markets.  More  specifically  for insurance 
enterprises, an assessment of the effectiveness  of the internal market, opened up in 
July  1994,  has  to  be  provided.  The  internationalization  of  the  enterprises 
(via branches,  subsidiaries  or  the  freedom  of  providing  cross-border  services), 
internal  market  on  the  markets 
the effects  of  the  opening-up  of  the 
competition and  on  the  businesses  competitiveness  will  be  monitored.  This 
statistical  information  shall  also  be  used  in  other  sectors  of  statistics  such  as in 
macro-economic or balance-of-payments statistics. 

(b) 

Is the measure in an area where the Community has sole jurisdiction  or where it 
shares jurisdiction  with the Member States? 

The  Member  States  are  responsible  for  the  actual  data  collection  and  the 
methods finally applied.  The  Regulation  lays  down  the  norms,  standards  and 
definitions necessary  for  collecting,  compiling,  transmitting  and  evaluating 
insurance  statistics  within  the  European  Union.  The  Regulation  is  mainly  based 
on existing EU legislation  (such  as Directive  91/674/EEC  of  20 December  1991, 
Directive  92/49/EEC  of  18  June  1992  or  Directive  92/96/EEC  of 
10 November  1992) setting up measures to harmonize the annual and consolidated 
accounts  of  insurance  undertakings  or  opening-up  the  internal  market  for  direct 
life  and  non-life insurance.  Many  characteristics  are  also  included  in  the 
enterprises'  returns  for  supervisory  returns.  Therefore  and  also  with  respect  to 
Article 6  of Regulation No  58/97  the draft Regulation does not  define  the actual 
collection methods to be used. 

(c)  What is the scale of the problem  at Community level? 

All  Member  States  are  currently  collecting  information  on  the  authorized 
population  of insurance  enterprises  (based  on  the  published  accounts  or  based  on 
the  returns  used  for  supervisory  purposes).  With  the  support  of  Member  States 
Eurostat  has  started  in  1994  data  collections  of  a  voluntary  base  of  mostly 
non-harmonized  statistical data  on insurance enterprises.  The Regulation  is largely 
based  on  the  existing  data  circuits.  It  will  entail  the  collection  of  very  little 
additional  data,  not  yet  covered  in ongoing  data  collections,  for  a  limited  number 
of Member  States  only.  In  order  to  make  maximum  use  of  these  statistics,  some 
very  limited  adaptations  of  definitions  and  norms  shall  be  needed  for  some 
Member States. 

(d)  What  would  be  the  most  effective  solution  among  those  available 

to  the 

Community and the Member States? 

It is only via such a Community initiative that the aim of establishing a harmonized 
EU  statistical  system  with  comparable  data  on  the  insurance  sector  can 
be achieved. 

(e)  What practical gains does the proposed  measure offer and what would be the cost 

of failure  to take action? 

The  implementation  of  this  legal  act  will  increase  the  availability,  improves  the 
comparability  and  consistency  of insurance  statistics  on  a Community-wide basis. 
The  statistics  -  in  general  produced  on  the  base  of  data  already  collected  -  with 
their  increase  in  reliability  and  quality  would  be  a  most  valuable  source  of 
information  for both public and private bodies alike. 

A  failure  to  implement  this  Regulation  would  imply  an  impossibility  to  assess 
accurately the impact of the EU legislation in particular as regards - in the frame of 
the  Single Market  Action Plan - the assessment  of the effectiveness  of the  internal 
market  in  insurance.  It  would  also  leave  incomplete  the  collection  of  statistics 
aiming at the analysis  on the  structure,  activity,  competitiveness  and  performance 
of businesses in the Community  established  by Council  Regulation  (EC,  Euratom) 
No 58/97. A failure to implement this Regulation would  additionally imply that  the 
transparency  of  the  insurance  sector  is  not  enhanced  which  is  likely  to  handicap 
businesses  in  the  new  environment  provided  by  the  opening-up  of  the  internal 
market in insurance. 

(f)  What options are available to the Community? 

The  choice  of  a  Regulation  is  the  most  appropriate  instrument  as  it  ensures  the 
direct application of this act in the Member  States which is an important  fact  given 
the  urgent  need  for  information.  This  regulation  presents  an  Annex  meant  to  be 
added to the existing Annexes to Council Regulation (EC, Euratom) No 58/97. 

(g) 

Are  uniform rules  needed,  or  is  the  adoption  of  a  regulation  setting  out the 
general objectives and leaving implementation to the Member States sufficient? 

Member  States will  remain responsible  for  the  data  collections  and for  adapting 
their  national  collection  systems.  This  Regulation  only  sets  out  a  number  of 
standards to ensure the data transmission of a common list of characteristics within 
a set timetable. 

PART TWO 

General statement 

1 

2. 

The  general  purpose  of  the  Regulation  is  to  require  Member  States  to  provide 
Eurostat  with  comparable  statistical  data  relating  to  the  structure,  activity, 
competitiveness  and  performance  of  businesses  in  the  insurance  sector  at 
European level. It should be noted that it is the Member States that are responsible 
for the data collection,  not the Commission.  The Regulation lays down the norms 
and standards necessary  for  producing  comparable  statistics within the European 
Union.  In  a  majority  of  countries  almost  all  of  the  characteristics  for  which 
statistics are to be compiled are already part of the Council Directive 91/674/EEC 
(where  the  Council  adopted  measures  to  harmonize  the  annual  accounts  and 
consolidated  accounts  of  insurance  undertakings)  or  are  included  in  the 
enterprises'  returns for supervisory  purposes.  Therefore  and also with respect  to 
Article 6 of Regulation No  58/97  the draft Regulation does  not define  the actual 
collection  methods  to  be  used.  Each Member  State  may therefore  carry  out  the 
data collections  in the  manner most  appropriate to  its own  situation.  Mostly the 
relevant  national authorities  are  already  collecting  the  largest  part  of  the  data 
required in the Regulation (based on the published accounts or on the returns used 
for supervisory purposes). 

Based on the main aims of the Single European Act, the European single market in 
insurance  was  built  progressively.  At  the  beginning  of  the  1990s  the  second 
generation of life and non-life insurance directives1 reached important intermediate 
stages towards an increasing integration  of the European insurance markets. The 
completion  of  the  single  market  in  insurance  -  however  -  is  owed  to  the  third 
generation  of these  directives2,  which  came into force  on the  1 July  1994.  Since 
then  enterprises  can  sell  all  their  products  in  other Member  States by  using  the 
right of  creating  an  establishment  (branch)  or  by  using  the freedom to  provide 
services  abroad.  Furthermore,  clients  have  the  unrestricted  choice  between  all 
competing  insurers authorized  in the Member  States  and all the products  offered 
by these enterprises. Based on a first limited assessment of the effectiveness  of the 
single market in insurance, further actions would be needed which are already laid 
down in the Single Market Action Plan in 1997. 

Council Directive of 8 November 1990 (90/619/EEC), life. 
Council Directive of 22 June 1988 (88/357/EEC), non-life. 
Council Directive of 10 November 1992 (92/96/EEC), life. 
Council Directive of 18 June 1992 (92/49/EEC), non-life. 

The third insurance directives are based  on the principle of mutual  recognition, a:;* 
minimum  standards.  They  are  accompanied  by  the  Accounting  Directive3  which 
harmonizes  the  annual  and  consolidated  accounts  of  insurance  undertakings. In 
most  Member  States,  it  came  into  force  with  the  accounting  year  1995.  This 
Directive  provides  comparability  of  the  accounts  of  insurance  enterprises 
throughout  the EU.  It  has laid  down  common  rules  on the  structure  and  on the 
disclosure  of  the  balance  sheet  and  the  profit  and  loss  account  as  well  as  on 
definitions and methodology of the data published. 

The  third  insurance  directives  have  caused  considerable  deregulation  of  the 
European  insurance  markets.  They  have  almost  completed  the  European  single 
market  in  insurance.  Based  on  the  changed  legal  situation,  larger  structural 
changes  of the  European  insurance  industry  did  already  take  place  and  are  still 
expected in the forthcoming years. 

The  step-by-step  completion  of  the  internal  market  and  the  setting-up  of  the 
Internal  Market  action  plan  has  thoroughly  increased  the  need  for  reliable 
Community statistics on the sector. 

General objectives 

The  draft  legal  act  on  insurance  statistics  aims  to  answer  the  various  demands 
for reliable  and  comparable  statistical  data.  Within  the  framework  laid  down by 
the Statistical  Programme  of  the  European  Community,  the  legal  act  also  takes 
into account  other  legislation  in  existence  in  the  area  of  insurance  statistics. 
Starting with the reference year  1992, a voluntary data collection in the insurance 
services  sector  was  already  undertaken  by  Eurostat  and  has  led  to  a  useful 
but incomplete  and  unharmonized  set  of  data.  Moreover,  the  national  and 
Community  administrations  involved  must  be  encouraged  to  use  the  most 
appropriate  tools  (e.g.  EDI),  systems  and  networks  to  process  and  exchange 
data in  order  to  maintain  the  highest  quality  of  data  interchange  and  to  use 
resources  efficiently.  A legal base is required  now to  ensure  an  improvement  in 
both  the  quality  and  reliability  of  the  insurance  data  to  be  collected,  compiled, 
and transmitted. 

Detailed objectives 

The collection of reliable, regular, timely, harmonized and comparable data on the 
structure, development and breakdown of total business and business per product, 
international  activities,  employment,  investments,  capital  and  reserves  and 
technical  provisions  of  non-life,  life,  composite  insurance,  specialist  reinsurance 
enterprises  and  Lloyd's  underwriters.  The  statistics  will  enable  to  measure  the 
effectiveness  of the  internal  market  in  insurance  and  its  impact  on  the  markets 
competition, prices and competitiveness of the enterprises. 

Council Directive of 19 December 1991 (91/674/EEC). 

The  compilation  of  such  harmonized  statistical  information  will  serve  to  meet 
the needs  of  Member  States  and  the  Commission  for  the  purpose  of  common 
EU policy objectives. 

With  a  view  to  limiting  the  statistical  burden  on  enterprises  and  national 
authorities, the largest part of the data to be collected is based  on the data already 
published by the enterprises or data already forwarded  to national authorities in the 
frame of enterprises'  supervision. 

User needs 

4. 

5. 

The relevant  national  authorities,  coordinated  by Eurostat,  have a  significant  role 
to  play  in  meeting  the  European  Union's  need  for  information  on  the  business 
Community.  The  recent  developments  in  Community  monetary,  economic  and 
social integration  require information  to  support the development  and  appraisal  of 
initiatives and decisions. The development and appraisal of initiatives and decisions 
need  to  be  based  on  more  reliable,  exhaustive,  up-to-date  and  comparable 
statistics.  Statistical  information  on businesses is required  for  the follow-up  of the 
internal  market  (also  in  the  frame  of  the  Single  Market  Action  Plan)  and  the 
development  and  appraisal  of  a  large  number  of  EU  policies.  In  addition, 
businesses  themselves  need  information  on  the  business  cycle  and  its  impact  in 
their  sector  in  national  and  international  markets.  More  specifically  for  insurance 
enterprises, an assessment of the effectiveness  of the internal market, opened up in 
July  1994,  has  to  be  provided.  The  internationalization  of  the  enterprises 
(via branches,  subsidiaries  or  the  freedom  of  providing  cross-border  services), 
the effects  of  the  opening-up  of  the  internal  market  on  the  markets  competition 
and on the businesses competitiveness will be monitored. 

sector 

Needs  were  expressed  on  extension  of  the  coverage  of  Community  statistics 
in  the  services 
in 
Council Decision 92/326 of  18 June  1992).  Indeed,  the final report  on  user  needs 
in services statistics presented  at the SPC of September  1994 stressed the need  for 
detailed  insurance  information  on  i.e.  structural  and  economic  variables,  exports 
and imports, employment data, investment  structure. 

concerning 

insurance 

foreseen 

services 

(as 

Existing situation 

6. 

7. 

Up  to  the  development  of  the  Insurance  Services  Statistics  no  comprehensive 
system  on  harmonized  insurance  data  at  Community  level  was  available.  A 
few very  limited  indicators  were  however  already  captured  in  the  horizontal 
statistics on  services and non-services  enterprises  which  are based  on  Annex  1 of 
Regulation No 58/97. 

The  harmonization  of  the  insurance  industry  at  EU  level  started  with  the 
adoption by  the  Council  of  the  three  generations  of  Directives  on  life  and 
non-life insurance  (79/267/EEC,  90/619/EEC  92/96/EEC  and  73/239/EEC, 
88/357/EEC,  92/49/EEC respectively)  and  the  Directive  on  annual  accounts 
and consolidated accounts  of 
(91/674/EEC).  These 
EU Directives  liberalized  the  EU insurance  markets  for  direct  life  and  non-life 
insurance.  Directive 91/674/EEC,  moreover,  provides a harmonized  structure  and 
contents  of the published  accounts to be established  for  the insurance  enterprises. 
In many Member  States these published  accounts are also the base for  the  returns 
6 

insurance  undertakings 

enterprises are forwarding  for  supervisory  purposes.  This legislative framework is 
the base for the European statistical system on insurance enterprises with the  effect 
of  minimizing  the  burden  on  the  businesses  and  authorities  concerned  as  largely 
being based on existing administrative sources. 

Aims of the new legal instrument 

8. 

9. 

10. 

To  establish  a  common  framework  for  the  collection,  compilation,  transmission 
and evaluation  of Community  statistics on the  structure,  activity  and  performance 
of  insurance  services.  The  statistics  to  be  compiled  aim  at  improving  the 
knowledge  of  the  national,  Community  and  international  development  of  the 
insurance sector. This statistical system will support the need of information  of the 
Commission,  Member  States,  the  insurance  sector  itself  (with  its  enterprises  and 
clients) and a wide range of other users. 

to 

incorporate 

To  continue  the  strengthening  of  the  development  of  the  Community  statistical 
system, 
the 
Community statistical tools  such  as the classification  of activities  (NACE  Rev. 1 -
Council  Regulation  No  761/93  of  24  March  1993)  and  the  classification  of 
products by activities CPÀ (Council Regulation No 3696/93 of 29 October  1993). 

the  production  of 

insurance  statistics 

into 

To provide flexibility to allow minor changes notably to the list of indicators to  be 
collected  in  the  future  (use  of  Council  Decision  87/373  of  13  July  1987  on 
"Comitology").  In  the  framework  of  the  Comitology  procedure  as  laid  down  in 
Article 13 of Regulation No  58/97, Article  12 of the  same  framework  regulation 
(in its indent (i)) provides the flexibility - under certain conditions - to  update  the 
list of characteristics. 

Consultation of interested parties 

11. 

12. 

13. 

A  detailed  analysis  of  the  needs  for  statistics  in  the  services  sector  (where  no 
harmonized  Community  surveys  exist  at  present)  was  already  prepared  for  the 
purpose of Council Regulation No  58/97 concerning  structural  business  statistics. 
This  looked  at  the  needs  of  various  Commission  services  as  well  as  the  needs 
expressed at national level. 

The principal users of the insurance services statistics within the Commission have 
been consulted during the preparation of the draft  legislation. 

The  National  Statistical  Offices  and  the  Insurance  Supervisory  Authorities 
responsible for data collections have been consulted on many occasions during the 
preparation of this text. This draft  Regulation was indeed presented  and  discussed 
at  the  meetings  of  the  relevant  working  group  (last  meeting  of  this  group  in 
July 1996) in Eurostat  where both  delegates of the competent  national  authorities 
and  representatives  of European  professional  associations  and  other  international 
organizations  were  present.  DG  XV  of  the  Commission  (with  its  relevant  unit) 
participated  very  actively  in  the  meetings  of  this  working  group.  The  proposal 
follows  closely  the  needs  for  statistical  information  in  this  field  as  expressed  by 
DG XV.  A  very  close  dialogue  has  been  undertaken  during  the  drafting  of  the 
methodological  manual  which  will  support  this  legislation  at  technical  and 
methodological level. 

14. 

taken  place  at 

this  draft  Regulation  have  also 

Discussions  on 
the 
Statistical Programme  Committee  (SPC)  and the  Insurance  Committee  (IC).  The 
draft  Regulation  was  submitted  to  the  IC  in  April  1996  and  to  the  SPC  on 
17 March  1997.  Both  Committees  support  the  legislation.  It  was  particularly 
pointed  out  that  the  draft  Regulation  should  be  forwarded  to  the  Council  where 
outstanding details and the consideration of need for national derogation would be 
pursued.  However,  reserves  have  been  made  by  some  countries  as  regards  the 
extension  of  the  reporting  requirements  placed  on  the  insurance  businesses. 
Additional form filling burdens on enterprises and processing burdens for national 
authorities concerned would be unwelcome. 

15. 

Nonetheless,  the  draft  text  is  supported from most  of the  Member  States  which 
have closely been involved in the preparatory work. At the end of the development 
work,  some Member  States  have  already  commenced  the  implementation  of the 
draft Regulation at national level on a voluntary basis. Based on these experiences, 
it  can be concluded  that the costs  on businesses  as well  as the  costs  on national 
authorities will be very limited in most of the Member States. 

16. 

In  the  framework  of  the  ongoing  cooperation  with  the  European  Monetary 
Institute, the need for the Insurance  Services Statistics in the larger framework of 
the statistics needed for the Economic and Monetary Union has been stated. 

Proposal for a 
COUNCIL REGULATION  (EC, Euratom) 

amending Regulation (EC, Euratom) No 58/97 
concerning structural business statistics 

THE COUNCIL OF THE EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 213 thereof, 

Having regard to the proposal from the Commission4, 

Having regard to the Opinion of the European Parliament5, 

Having regard to the Opinion of the Economic and  Social Committee6, 

Whereas Council Regulation  (EC, Euratom) No  58/977 established  a common  framework 
for the collection, compilation, transmission and evaluation  of Community statistics on the 
structure,  activity,  competitiveness  and  performance  of  businesses  in  the  Community; 
whereas  developments  in  Community  monetary,  economic  and  social  integration  require 
the extension of the aforesaid framework to the insurance sector; 

the  compilation  of  national 

Whereas 
to 
Council Regulation  (EC)  No 2223/968  requires  comparable,  complete  and  reliable 
insurance statistics; 

accounts  according 

regional 

and 

Whereas  it  is  therefore  necessary  to  amend  Regulation  (EC,  Euratom)  No  58/97  on 
the basis  of  Council  Directives  92/49/EEC9  and  92/96/EEC10,  as  amended 
by Directive 95/26/EC11  of 
of 
the  Council 
completing the internal  market 
insurance  and  of 
Council Directive  91/674/EEC12  concerning  the  annual  and  consolidated  accounts  of 
insurance undertakings; 

and 
life  and  non-life 

the  European  Parliament 

for  direct 

Whereas  the  Statistical  Programme  Committee13  and  the  Insurance  Committee14  have 
been consulted, 

4  OJNo 
OJNo 
5 
6  OJNo 
7  OJNoL14, 17.1.1997, p. 1. 
8  OJNoL 310, 30.11.1996, p. 1. 
9  OJ NoL228, 11.8.1992, p.  1 
0  OJ NoL 360, 9.12.1992, p. 1. 
1  OJ NoL 168, 18.7.1995, p. 7 
2  OJNoL 374, 31.12.1991, p. 7. 
3  OJ NoL 181, 28.6.1989, p. 47. 
4  OJ NoL 374, 31.12.1991, p. 32. 

HAS ADOPTED THIS REGULATION: 

Article  1 

Regulation (EC, Euratom) No 58/97 is amended as follows: 

1. 

The following indent is added to Article 5: 

"... a detailed module for structural statistics in insurance defined in Annex 5." 

2. 

An Annex 5, as set out in the Annex to this Regulation, is added. 

Article 2 

This Regulation shall enter into force on the twentieth day following that of its publication 
in the Official Journal of the European Communities. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all 
Member States. 

Done at Brussels, 

For the Council 
The President 

10 

ANNEX 

A DETAILED MODULE FOR  STRUCTURAL  STATISTICS  IN  INSURANCE 

"ANNEX  5 

Section 1 
Aims 

The aim of this Annex is to establish a common framework for the collection,  compilation, 
the  structure,  activity, 
transmission  and  evaluation  of  Community  statistics  on 
performance  and  competitiveness  of  insurance  services.  This  module  includes  a  detailed 
list of characteristics on which statistics shall be compiled  in order to improve  knowledge 
of the national, Community and international development of the insurance sector. 

Section 2 
Scope 

The statistics to be  compiled  shall  relate  to  the  domains  referred  to  in points  (i),  (ii) and 
(iii) of Article 2 of this Regulation, and in particular to: 

(1) 

(2) 

the detailed  analysis of the structure,  activity,  performance  and competitiveness  of 
insurance enterprises; 

the  development  and  distribution  of  total  business  and  business  per  product, 
customer  patterns,  international  activities,  employment,  investments,  capital  and 
reserves and technical provisions. 

Section 3 
Coverage 

(1) 

Such statistics shall be compiled  for  all activities within the scope of NACE Rev. 1 
division 66 except for class 66.02. 

(2) 

The compilation  of statistics shall cover the following  enterprises: 

non-life  insurance  enterprises:  all  those  referred  to  in  Article  2(l)(a)  of 
Council Directive 91/674/EEC of  19 December  199115; 

life  assurance  enterprises:  all  those  referred 
Directive 91/674/EEC; 

to 

in  Article  2(1 )(b)  of 

specialist  reinsurance  enterprises:  all  those  referred  to  in  Article  2(1 )(c)  of 
Directive 91/674/EEC; 

15  OJ NoL  374, 31.12.1991, p. 7. 

11 

(3) 

(4) 

(1) 

(2) 

Lloyd's 
underwriters: 
Directive 91/674/EEC; 

all 

those 

referred 

to 

in  Article 

4 

of 

composite  insurance  enterprises:  all  those  carrying  out  life  and  non-life 
insurance business. 

In  addition  to  paragraph  2,  branches  of  insurance  enterprises  referred  to  under 
Title III of Council Directives 73/239/EEC16 and 79/267/EEC'7 and whose activity 
falls  within  one  of  the  NACE  Rev. 1 classes  referred  to  in  paragraph  I  shall  be 
assimilated to the corresponding enterprises as defined  in paragraph 2. 

For the purposes of the harmonized  Community  statistics, Member  States  shall be 
free to exclude the enterprises mentioned in Article 3 of Directive 73/239/EEC and 
Article 2(2) and (3), Articles 3 and 4 of Directive 79/267/EEC. 

Section 4 
Characteristics 

The  characteristics  and  statistics  presented  in  list  A,  paragraph  3  and  list  B, 
paragraph 4, shall be compiled  in accordance with  Section  5. When  characteristics 
are  derived  directly  from  the  annual  accounts,  accounting  years  ending  within  a 
reference year shall be assimilated  to the said reference year. 

In  the  lists  A  and  B  ,  characteristics  relating  to  life  insurance  enterprises  are 
identified  by the  number  1, those  relating  to  non-life  insurance  enterprises  by the 
number 2, those relating to composite insurance enterprises by the number 3, those 
relating to  specialist  reinsurance enterprises by the number 4, those relating to  the 
life  insurance  business  of  composite  insurance  enterprises  by  the  number  5  and 
those relating to the non-life insurance business (including reinsurance accepted) of 
composite insurance enterprises by the number 6. 

(3) 

List A includes the following  information: 

(i) 

characteristics  listed  in Article 6 of  Directive  91/674/EEC  concerning  life, 
non-life,  composite  and  specialist  reinsurance  enterprises:  asset  side of the 
balance  sheet:  items  C  I  (showing  land  and  buildings  occupied  by  an 
insurance enterprise for  its own activities separately), C II, C II  1 + C II 3 
as  an  aggregate,  C  11  2 + C  11  4  as  an  aggregate,  C  III,  C  111 1, C  III  2, 
C III 3, C III 4, C III  5, C III 6 + C III 7 as an aggregate, C IV, D; liability 
side  of  the  balance  sheet:  items  A,  A  I,  A  II  +  A  III  +  A  IV  as  an 
aggregate,  B,  C  1  a  (separately  for  the  life  and  non-life  business  of 
composite  enterprises),  C 2 a (separately  for  the life  and  non-life  business 
life  and 
of  composite  enterprises),  C  3  a 
non-life business of composite  enterprises),  C 4  a,  C  5,  C  6  a,  D  a,  G  III 
(without separation of convertible loans), GIV. 

(separately 

the 

for 

16 
17 

OJ NoL  228,  16.8.1973, p. 13. 
OJ NoL63,  13.3.1979, p. 13. 

12 

(ii) 

(iii) 

(iv) 

characteristics  listed  in  Article  34,  Part  I,  of  Directive  91/674/EEC 
concerning non-life  and specialist  reinsurance  enterprises  and the  non-life 
business of composite insurance enterprises: items 1  a,  I b, 1  c, 1  d, 2 , 4 a 
aa, 4 a bb, 4 b aa, 4 b bb, 7 (gross amount), 7 d, 9,  10 (separately for the 
gross and net amount). 

characteristics  listed  in  Article  34,  Part  II,  Directive  91/674/EEC 
concerning  life  insurance  enterprises  and  the  life  business  of  composite 
insurance  enterprises:  items  1 a,  1 b,  1  c  (the  gross  amount  and  the 
reinsurers share separately), 2 , 3, 5 a aa,  5 a bb, 5 b aa,  5 b bb, 6 a aa, 
6 abb,  8  (gross  amount),  8  d,  9,  10,  12,  13  (thegross  and  net 
amount separately). 

characteristics  listed  in  Article  34,  Part  III,  of  Directive  91/674/EEC 
concerning life,  non-life,  composite and  specialist  reinsurance  enterprises: 
items 3, 4 (only for life and composite enterprises), 5, 6 (only for non-life, 
composite  and  specialist  reinsurance  enterprises),  7,  8,  9+14+15  as  an 
aggregate, 10 (before tax),  13,  16. 

(v) 

characteristics referred to in Article 63 of Directive 91/674/EEC: 

concerning life and non-life insurance enterprises and life and non-life 
business of composite  insurance  enterprises:  gross  direct  premiums 
written  by  (sub)categories  of 
level  and 
subcategories 66.03.21, 66.03.22); 

the  CPA  (5-digit 

concerning  non-life  insurance  enterprises  and  non-life  business  of 
composite  insurance  enterprises:  gross  claims  incurred,  direct 
business,  gross  operating  expenses,  direct  business  and  reinsurance 
balance, direct business, all variables by (sub)categories  of the CPA 
(5-digit level and subcategories 66.03.21, 66.03.22); 

concerning  life  insurance  enterprises  and  life  business of composite 
insurance  enterprises:  gross  direct  premiums  written  with  the 
breakdown as shown in number II, item 1; 

concerning life and non-life insurance enterprises and life and non-life 
business of composite insurance enterprises: geographical breakdown 
of  gross  direct  premiums  written  in  the  Member  State  of  the 
enterprise's head office,  other Member  States, other EEA countries, 
Switzerland, USA, Japan, third countries. 

(vi) 

characteristics  referred 
to  in  Article  64  of  Directive  91/674/EEC 
concerning life,  non-life,  composite and  specialist  reinsurance enterprises: 
commissions for direct insurance business (excluding specialist reinsurance 
enterprises) and total insurance business. 

(vii) 

additional characteristics listed below: 

13 

Cads 

11  no 
11  in 
il  112 

11 113 

il  115 
11 410 

32  114 
32  115 

32  116 

32  182 

32  160 
32  180 
32  188 

Title 

Enterprises/ 
business 
concerned 

Structural  data 
Number of enterprises 
Number of enterprises broken down by legal status 
Number  of  enterprises  broken  down  by  size  class  of  gross  premiums 
written 
Number  of  enterprises  broken  down  by  size  class  of  gross  technical 
provisions 
Number of enterprises by residence of the parent enterprise 
Total number and location of branches in other countries 

(1, 2, 3, 4) 
(1,2,3,4) 
(1,2,3) 

(1) 

(1, 2, 3, 4) 
(1, 2, 3) 

Accounting data/ Technical part of the profit and loss account 
Gross premiums written broken down by legal status 
Gross direct premiums  written  broken  down  according to the residence o 
the parent enterprise 
Gross  reinsurance  premiums  accepted,  written  premiums  broken  down 
according to the residence of the parent enterprise 
Reinsurers share of gross  premiums written broken down according to the 
residence of the parent enterprise 
Other items in the technical account, gross amount 
Reinsurance balance 
Reinsurers  share  of  the  gross  amount  of  other  items  in  the  technical 
account 

(1,2,4,5,6) 
, 2, 5, 6) 
m 
(1,2,4,6) 

(1,2,4,5,6) 

(1,2,4,5,6) 
(1, 2, 4, 5, 6) 
(1,2,4,5,6) 

32  190 

Accounting data/ non-technical part of the profit and loss account 
Subtotal II (net balance of the technical account) 

(3) 

32 614 
13 310 

32 615 
32 616 
32 617 
32 618 
32 619 
32 711 
32 713 
32 714 
32 715 
32 716 
32 721 
32 722 
32 723 

Additional data relating to the profit and loss account 
External expenses on goods and services 
Personnel costs 

External and internal claims management expenses 
Acquisition costs 
Administrative expenses 
Gross other technical  charges 
Investment management charges 
Income from  participating  interests 
Income from  land and buildings 
Income from other investments 
Value re-adjustments  on investments 
Gains on the realization on investments 
Investment management charges, including interest 
Value adjustments  on investments 
Losses on the realization on investments 

(1,2,3,4) 
0,  2, 3, 4) 

(1,2,4,5,6) 
(1,2,4,5,6) 
(1,2,4,5,6) 
(1,2,4,5,6) 
(1,2,4,5,6) 
(1,2,4,5,6) 
(1, 2, 4, 5, 6) 
(1, 2, 4, 5, 6) 
(1, 2, 4, 5, 6) 
(1,2,4,5,6) 
(1,2,4,5,6) 
(1,2,4,5,6) 
(1,2,4,5,6) 

14 

Code 

33  121 

34  120 

34  130 

34311 

34 321 

16 110 

36 300 
37 331 
37 301 

Title 

Enterprises/ 
business 
concerned 

Data by product  [by (sub)categories of the  CPA] 
Reinsurers  share  of  gross  direct  premiums  written  (5-digit 
subcategories  66.03.21,  66.03.22) 

level,j(1,2,5,6} 

Data on internationalization  (in general) 
Geographical  breakdown  of  gross  reinsurance  premiums  accepted. 
premiums written 
Geographical  breakdown of reinsurers share of gross premiums written 

( 1 , 2 , 4 , 5 , 6) 

(L  2,4,  5. 6) 

Data  on  internationalization  (geographical  breakdown  of the  business 
written  under the right of establishment} 
Gross  direct  premiums  written  by  CPA  category  (5-digit-level)  and  by 
Member  State 

(I,  2, 5, 6) 

Data  on internationalization  (geographical  breakdown  of the  business 
written  under the right of freedom  to provide sen ices) 
Gross  direct  premiums  written  by  CPA  category  (5-digit-level)  and  b\ 
Member State 

(I,  2, 55 6) 

Data on employment 
Number of persons employed 

Data on the balance sheet  (assets/liabilities) 
Balance sheet total 
Gross provisions for outstanding claims, related to direct  business 
Total net technical provisions 

£1, 2, 3.,4] 

(1,2,3,4) 
(2, 6) 
(1,2,3,4): 

(4) 

List B includes the following  information: 

0) 

00 

characteristics  listed  in  Article  34,  Part  I,  of  Directive  91/674/EEC 
concerning  non-life  and  specialist  reinsurance  enterprises  and  the  non-life 
business  of composite  insurance enterprises:  items 3,  5, 6,  S. 

characteristics  listed  in  Article  34,  Part  II,  of  Directive  91/674/EEC 
concerning  life insurance  enterprises  and  the  life  business  of  composite 
insurance enterprises: items 4, 6 b, 7,  11. 

(iii) 

additional  characteristics  listed  below: 

15 

Code 

32  132 

36  112 
36 123 

36  133 
36 210 

36 220 

37  101 
37 333 

39  100 

39 200 

39 300 

39 400 

39 500 

Title 

Accounting data/technical part of the profit and loss account 
the 
Gross  payments 
accounting year 

respect  of  claims 

incurred 

in 

in 

Enterprises/ 
business 
concerned 

current 

( 2, 4, 6) 

Data  on the balance sheet  (assets/liabilities) 
Land and buildings (current value) 
Investments  in  affiliated  enterprises  and  participating  interests  (current 
value) 
Other financial investments (current value) 
Investments  for  the benefit  of life-assurance  policyholders  who bear  the 
investment risk - land and buildings 
Investments  for  the benefit  of  life-assurance  policyholders  who  bear  the 
investment risk - other financial  investments 
Total capital and reserves, broken down by legal status 
Gross  provision  for  outstanding  claims  related  to  direct  business,  by 
^subcategory  of  the  CPA  (5-digit  level)  and  subcategories  66.03.21, 
66.03.22 

(1,2,3,4) 
(1,2,3,4) 

(1, 2, 3, 4) 
(1,3) 

(1,3) 

(1,2,3,4) 
(2,6) 

(1,2,5,6) 

(1, 2, 5, 6) 

Residual data 
Number  of  contracts  outstanding  at  the  end  of  the  accounting  year, 
relating to  direct  business  for  all  individual  life  insurance  contracts  and 
for  the  following  (sub)categorics  of  the  CPA:  66.01.11,  66.01.12 
66.01.13,66.01.14, 66.03.11, 66.03.4, 66.03.5 
Number  of insured persons at the end of the accounting year, relating to 
direct business for all group life insurance contracts and for the following 
subcategories of the CPA: 66.03.12, 66.03.13 
Number of insured vehicles at the end of the accounting year, relating to 
direct  business,  for  the  following  subcategories  of  the  CPA:  66.03.21, 
66.03.22 
Gross  insured  sum  at  the  end  of  the  accounting  year,  relating  to  direct 
business,  for  the  following  subcategories  of  the  CPA:  66.01.11, 
66.01.12, 66.01.13, 66.01.14, 66.01.4 
Number of claims incurred during the accounting  year,  relating to direct 
business, for the following subcategory of the CPA: 66.03.21 

(2,6) 

(1,5) 

(2,6) 

16 

Section 5 
First reference  year 

The first reference  year for  which  annual  statistics  shall be  compiled  is the  1996 calendar 
year  for  the  characteristics  and  statistics  of  list  A  and  the  2000  calendar  year  for  the 
characteristics and statistics of list B. 

Section 6 
Production of results 

The results are to be broken down to the NACE Rev. 1, 4-digit  level (classes). 

Section 7 
Transmission  of results 

The results  shall be transmitted  within  12 months from  the  end  of  the  reference  year  for 
the enterprises referred to in Section 3, except specialist  reinsurance enterprises, for  which 
the results shall be transmitted within  18 months from the end of the reference  period. 

Section H 
Insurance  Committee 

inform 

the  Insurance  Committee  set  up  under  Council 
The  Commission  shall 
Directive 91/675/EEC18  about  the  implementation  of this  module  and  about  all  measures 
for  adjustment  to  economic  and  technical  developments  concerning  the  collection  and 
statistical  processing of data, the processing and the transmission  of results it has  decided 
in accordance with Article  13 of this Regulation. 

Section 9 
Transition period 

For  the  purposes  of  this  detailed  module,  the  transition  periods  shall  not  exceed 
three years  from  the  beginning  of  the  first  reference  years  for  the  compilation  of  the 
statistics indicated in Section 5. 

18  OJ NoL 374, 31.12.1991, p. 32. 

17 

Financial  Statement 

Financial statement relating to Insurance Services Statistics 

1. 

Title of operation 

Proposal  for  a  Council  Regulation  amending  Regulation  No  58/97  concerning 
structural business statistics 

(The  draft  Regulation  proposed  aims  at  complementing  Council  Regulation 
(EC, Euratom) No 58/97 concerning  structural  business  statistics with a detailed 
module for structural statistics in insurance) 

2. 

Budget headings involved 

Chapter B5-6000 

3. 

Legal basis 

Article 213 of the Treaty 

Council  Decision  89/382/EEC  of  19  June  1989  establishing  a  Committee  on 
the statistical  programmes  of  the  European  Communities  (OJ  No  L  181  of 
28 June 1989). 

4. 

Description of operation 

4.1  General objective 

This Council Regulation aims to make available harmonized statistical  information 
on  insurance  services  within  the European  Union  to  all users  of  such statistics. 
This  information  is  necessary  for  drawing  up,  monitoring  and  evaluating 
Community policies, in particular concerning the internal market as well economic, 
financial,  sectoral, competition, and enterprise policies. Furthermore, international 
treaties  such  as  that  instituting  the  General  Agreements  on  Trade  in  Services 
(GATS) require harmonized Community statistics in this area. 

4.2  Duration 

Multi-annual (ongoing collection and compilation of statistical data). 

Period covered by the action: 1996-2000 

18 

4.3 

Target population 

The beneficiaries of this operation are ail users of official  statistics: the Community 
institutions, the governments of the Member States, economic and social decision 
makers, the insurance industry, research institutes, universities and the media. 

5. 

Classification of expenditure or of revenue 

5.1  Non-compulsory expenditure 

5.2  Differentiated  appropriations. 

5.3 

Type of revenue involved 

The  sale  of  statistical  products  (databases,  publications)  partially  covering 
production costs. 

6. 

Type of expenditure or revenue 

6.2 

Subsidy for  cofinancing with other sources of the public sector 

Foreseen for the Member States for supporting the implementation of the action 

The sale of insurance  statistics  (publications,  data bases,  etc.) will lead  to  some 
revenue which is estimated on about ECU 60 000 per year. 

7. 

Financial impact 

7. /  Method of calculating total cost of operation 

In  so  far  as  existing  data  collection  systems  have  to  be  slightly  extended  or 
adapted, the contribution from the Community budget is calculated on the basis of 
the following hypotheses: 

• 

• 

8-10%  of  the  running  costs  for  the  first  four  years  of  operation  for  the 
statistics on list A of Annex 5, 
8-10%  of  the  running  costs  for  the  first  four  years  of  operation  for  the 
statistics on list B of Annex 5. 

Nature  of  expenditure  by the  Member  States:  contribution  to  the  costs  of  data 
collection, data processing, dissemination and other running costs. 

7.2  Breakdown of commitment appropriations (ECU) 

Financial year 
Commitment 
ippropriations 

1997 

1998 

1999 

2000 

0.25 million 
ECU 

0.25 million 
ECU 

0.25 million 
ECU 

0.25 million 
ECU 

Total 

1.0 million 
ECU 

19 

7.3 

Schedule for  commitment and payment appropriations (ECU) 

Financial  year 

1997 

1998 

1999 

2000 

Total 

0.25 million 
ECU 

0.25 million 
ECU 

0.25 million 
ECU 

0.25 million 
ECU 

1.0 million  ECU 

Commitment 
appropriations 

Payment 
appropriations 

1997 

1998 

1999 

2000 

2001 

0.20 million 
ECU 

0.05 million 
ECU 

0.20 million 
ECU 

0.05 million 
ECU 

0.20 million 
ECU 

0.05 million 
ECU 

0.20 million 
ECU 

0.25 million 
ECU 

0.25 million 
ECU 

0.25 million 
ECU 

0.05 million 
ECU 
1.0  million  ECU 

0.20 million 
ECU 

0.05 million 
ECU 
0.25 million 
ECU 

Total 

0.25 million 
ECU 

0.25 million 
ECU 

0.25 million 
ECU 

8.  What anti-fraud measures are planned in the proposal for the operation? 

For  the  contracts  and  agreements  entered  into  by  the  Commission  payment  is 
solely by results. 

The  statistical  information  is  considered  to  be  an  objective  instrument  for 
evaluating  Community  action  programmes  and thus  contributes  to  consolidating 
the anti-fraud provisions. 

9. 

Elements of cost-effectiveness analysis 

9.1 

Specific and quantified objectives; target population 
Specific objectives: 

This Council Regulation aims to make available harmonized statistical  information 
on  insurance  services within  the  European  Union to  all users  of  such  statistics. 
This  information  is  necessary  for  drawing  up,  monitoring  and  evaluating 
Community policies, in particular concerning the internal market as well economic, 
financial,  sectoral, competition, and enterprise policies. Furthermore, international 
treaties  such  as  that  instituting  the  General  Agreements  on  Trade  in  Services 
(GATS) require harmonized Community statistics in this area. 

The Annex to the draft  Regulation contains the lists of characteristics for which 
statistics should be provided. 

20 

Target population: 

The beneficiaries of this operation are all users of official  statistics: the Community 
institutions, the governments of the Member States, economic and social  decision 
makers, the insurance industry, research institutes, universities and the media. 

Information  on the  internal  market  in this area is  needed  to  facilitate  the  proper 
functioning of the Single Market, to provide orientation for additional Commission 
actions which might get necessary and promote competitiveness of the Community 
economy. 

Member  States  authorities  are  responsible  for  the  data  collection  foreseen  in 
this proposal. 

9.2 

Grounds for  the operation 

Reasons for  choosing this operation rather than an alternative which would meet 
the same objectives. 

This operation has the following objectives: 

• 

• 

to  provide  the  Community  institutions  with  the  quantitative  data  for 
drawing up,  monitoring  and  evaluating  plans  of  action  in  accordance  with 
Article 3 (2)  of  the  Financial  Regulation:  "it  therefore  contributes  to  the 
more effective and appropriate use of the Community budget"; 

to  provide  the  national  governments  with  harmonized  statistics  on  all 
the  progress  of 
for  evaluating  and  monitoring 
Member  States 
Community policies; 

• 

to  provide political,  economic  and  social  operators  in the  Community  with 
statistical information on which to make and evaluate their decisions in their 
respective fields of  action: it  is therefore  an essential  part  of the European 
information market; 

• 

to provide the scientific community with the information necessary to further 
analysis and knowledge of economic and social life in the Community. 

Statistical activities generally and data collection in particular draw extensively on 
the principle of subsidiarity,  and the operating and administration costs are almost 
exclusively  met  by  the  national  governments.  Nevertheless,  the  (in  the  case  of 
insurance  services  statistics  very  limited)  expenditure  is  essential  to  provide  an 
incentive for harmonizing the  scope of the national  surveys and standardising the 
results produced by Member States. The extension of national surveys only involve 
minor adaptations in all countries. Some indicators may not exist in some countries 
and will have to be introduced but are therefore to be delivered in a later stage. 

21 

Choice of intervention 

(a) 

(b) 

(c) 

This  operation  is  mainly  financed  by  Member  States  which  already  have 
ample systems for collecting data on insurance services. 

Statistical information is collected by a highly decentralised level, on which 
the national systems have a responsibility at individual Member State level. 
The Community  statistical  programme is becoming  an integral  part  of the 
national statistical  programmes,  thereby  contributing  to  establishing  a 
European statistical area. 

As  well  as  providing  statistics  on  insurance  services  within the  European 
Union,  the  proposals  should  improve the  availability  of data used  for  the 
compilation  of  national  accounts,  balance  of  payments  statistics  or  other 
derived statistics. 

The  potential  of  multiplier  effects  (ability  to  mobilise  other  sources  of 
finance) is  relatively  limited.  However,  the  data  foreseen  by  the  draft 
Regulation  will  be  of  considerably  greater  relevance  for users  wishing  to 
make  international  comparisons  of  the  insurance  markets  within  the 
European  Union,  but  also to  countries  outside  the European  Union.  This 
should lead to a greater revenue for the sale of statistical products. 

Main factors  of  uncertainty  which  could  affect 
the operation 

the  specific  results  of 

Difficulties may arise if certain Member States -or the Commission- do not manage 
to  release  the  necessary  resources  for  the  success  of  the  operation,  which  is 
unlikely as these are very limited. 

9.3  Monitoring and evaluation of the operation 

Performance indicators selected 

The operation is monitored  as part of the Community  statistical  programme.  The 
progress of the statistical  programme is continuously  monitored against a control 
chart  which  sets  out  the  targets  and  resources  necessary  for  each  project  in 
target/performance terms,  at the start of each year, Eurostat  prepares a report on 
the progress of the programme in the previous year. This is in three parts: 

1. 

2. 

3. 

It  summarizes  the  main  goals  achieved  during  the  year  in  terms  of 
each policy; 

It  describes  the  objectives 
results obtained; 

laid  down  for  each  project  and  the 

It provides statistics on the use of human, budgetary, IT and administrative 
resources during the previous year. 

The quality of the statistics compiled will be regularly checked. 

22 

Details and frequency of planned evaluation 

It  is  proposed  in  Council  Regulation  No  58/97  concerning  structural  business 
statistics  that  the  Commission  shall  submit  a  report  to  the  Parliament  and  the 
Council  on  the  experience  acquired  from  the  work  carried  out  pursuant  to  the 
Regulation. This report shall be prepared  at least every three years. 

10. 

Administrative expenditure (Part A of the budget) 

The  provision  of  the  required  administrative  resources  is  dependant  upon  the 
annual decision  of the  Commission  concerning  the  allocation  of resources,  taking 
particular account of the extra personnel and financial resources made available by 
the budget authority. 

10.1.  Effect on the number of Commission  staff? 

Duration 

Staff to be assigned to 
managing the operation 
Permanent 
posts 

Temporary 
posts 

Duration 

Additional 
resources 

Source 

Existing 
resources in 
the DG or 
department 
concerned 

Officials  or 
temporary 
staff 
A 
B 
C 
Other 
resources 
Total 

1 
ï 

i 
1 

i
1 

ll 

i 

I 

i 

1 

10.2.  Total financial impact of the additional human  resources 

Amount 

Method of calculation 

Officials 

Temporary staff 

Other resources 
Total/year 

[ 

| 

23 

10.3. 

Increase in other administrative expenditure as a result of the operation 

Budget heading 

Amount 

Method of calculation 

Total /year 

| 

| 

24 

Impact Assessment  Form 

The impact of the proposal on business 

with special reference to small and medium-sized enterprises (SMEs) 

Title of proposal 

Proposal  for  a  Council Regulation  amending  Regulation  No  58/97  concerning  structural 
business statistics 

(The  draft  Regulation  proposed  aims  at  complementing  Council  Regulation 
(EC, Euratom) No  58/97 concerning  structural  business  statistics with  a  detailed  module 
for structural statistics in insurance) 

Reference number 

The proposal 

1. 

Taking  account of  the principle  of  subsidiarity,  why  is  Community  legislation 
necessary in this area and what are its main aims? 

The  Commission  requires  statistical  information  on  the  structure,  activity, 
competitiveness  and  performance  of  the  European  business  Community,  in 
particular  for  the  evaluation  and  follow-up  of  the  internal  market.  The  need  for 
harmonized  business  statistics  has  grown  with  the  development  of  the  internal 
market and the increasing international  competition. 

The  statistical  surveys  in  place  in  the  Member  States  have,  for  the  most  part, 
developed since the adoption of the Council Directives No 64/475 of 30 July  1964 
and  No  72/221  of  6  June  1972,  which  covered  the  industrial  sectors  of  the 
economy  only.  These  developments  have  often  taken  place  in  an  uncoordinated 
and piecemeal manner  as they  have been undertaken  by national  statistical  offices 
in  response  to  national  needs  for  data.  The  need  for  harmonized  data  has  often 
been  expressed  within  the  European  Union.  Despite  efforts  by  the  Commission 
(Eurostat),  it  has  not  been  possible  to  produce  comparable  statistics, within  the 
European Union  and the inflexibility  of the existing legislation  has meant  that  the 
European  business  statistical  system  has  not  developed  in  line  with  national 
systems  nor  with  changes  in  the  business  environment.  Council  Regulation 
(EC/Euratom)  No  58/97  on  structural  business  statistics  brings  the  existing 
legislation up to date, notably in its coverage of the service sectors and provides an 
instrument  for  coordinating the many different  business  surveys undertaken  within 
the  EU  such  that  unnecessary  burden  through  duplication  and  heterogeneity  of 
data collection can be avoided.  The proposed  Regulation  consists of an  additional 
sectoral  annex  to  Regulation  No  58/97  on  the  insurance  sector.  It  aims  at 
harmonizing  the  statistical  information  available  on  insurance  services  in  the 
framework  of the abovementioned  Regulation. 

25 

The  purpose  of  the  legislation  is  to  make  available  comparable  and  harmonized 
statistics on insurance  enterprises  for  all  EU Member  States.  It  aims to  do this by 
harmonizing  the  results  to  be  compiled  by  Member  States  in  terms  of  the 
coverage,  definitions  and  classifications  used.  It  does  not  try  to  harmonize  the 
current  data  collection  systems  in  each  Member  State.  The  requirement  that  will 
be imposed  by this Regulation  is that  each Member  State must be able to  compile 
results  which  are  comparable  between  EU  countries,  using 
the  data 
collected in their  national  systems.  Very  few  changes  will  be  required  in  the 
national  data collection  systems  as most  of the  characteristics  to  be  collected  are 
already available  at  national  level.  Most  of  these  characteristics  are  defined  in 
Council  Directive  91/674/EEC  for  the  harmonization  of  annual  accounts  and 
consolidated  accounts  of  insurance  undertakings  ("Accounting  Directive")  or  are 
part of existing reporting circuits in the frame of the enterprises'  supervision. 

The impact on business 

2. 

Who will be affected by the proposal? 

which sectors of business? 

The  proposal  aims  in  the  long  term  to  compile  comparable  statistics  on 
the insurance  sector  in  the  Member  States  in  the  framework  of  Council 
Regulation No  58/97/EEC.  Without  considering  the  very  small  enterprises  which 
can be exempted from the coverage of the Regulation only about 4 000 enterprises 
are  concerned.  The  requirements  in  the  insurance  sector  reflect  the  state  of 
development  of  this  sector  with  rather  detailed  data  circuits  already  existing  for 
many years. The insurance  specific  annex proposed  in this draft  Regulation  shows 
a level of detail comparable to the existing annexes of Regulation No 58/97. 

The  sectors  of  business  affected  by  the  proposal  are  those  active  in  the  NACE 
Rev.l  classes 66.01 and 66.03 (including specialist reinsurance enterprises). 

which  sizes  of  business 
medium-sized firms) ? 

(what 

is 

the  concentration  of  small  and 

The  Regulation  lays  down  that  the  results  to  be  transmitted  to  the  Commission 
(Eurostat)  should  be  representative  of  enterprises  of  all  size  classes.  It  does  not 
say how this data should be collected but  leaves the responsibility for  the national 
data collection system to each Member State. 

Most  characteristics  proposed  on which  statistics  should  be  compiled  are  already 
collected  at  national level by the  insurance  supervisory  authorities  on the basis of 
the published  accounts of the enterprises or on the basis of the supervisory  returns 
forwarded  to  the  competent  national  authorities.  All  authorized  enterprises  must 
therefore  already  establish  the  information  defined  in the  "Accounting  Directive" 
(91/674/EEC).  The  enterprises  to  which  this  applies  are  defined  in  Article  2  of 
this Directive. 

26 

In  addition,  Member  States  will be  permitted  to  exempt  certain  smalt  insurance 
businesses from the  coverage  of  the  proposal.  This  is  laid  down  in  Section  3 
paragraph 4, of the draft  Regulation.  For the very limited  data which  are not yet 
part  of  existing  circuits,  Regulation  No  58/97,  moreover,  allows  estimation 
procedures  rather  than  comprehensive  data  collections.  Both  possibilities,  the 
exemption of small businesses and the estimation procedures will strictly  limit the 
burden on small and medium enterprises. 

In short this proposal makes thorough use of administrative sources and does not 
cause specific statistical data collection exercises. It allows the national authorities 
to extract most of the variables from existing data sources (data published  by the 
enterprises  or  extracted  from  supervisory  returns).  This  use  of  administrative 
sources,  if  employed  by  Member  States,  will  widely  minimize  the  number  of 
variables which need to  be collected  additionally from the businesses  concerned'. 
For some Member States it can be assumed that no additional data will have to be 
collected at all. The use of administrative sources, if employed by Member States, 
will reduce the burden  on businesses  required  to  reply  several times to  identical 
questions. 

Are there particular geographical areas of the Community where these businesses 
are found? 

Regulation  No  58/97  concerning  structural  business  statistics  requires  that  any 
samples drawn by Member States should be representative at a regional as well as 
a  national  level.  The  regional  breakdown  of  a  small  number  of variables  for  all 
sectors is foreseen by Regulation No 58/97. As regional information is not relevant 
for insurance services no regional breakdown will be required for this sector. 

3. 

What will business have to do to comply with the proposal? 

Member  States are required  to  collect  the data necessary  for  the compilation  of 
harmonized  results. Most  data is already  collected  at the national  level  from  the 
competent  national  authorities.  For  the largest  part  of the  data  collection,  there 
will be no need to contact the statistical units (enterprises) concerned. 

For the remaining part, not yet available at national level in the frame of existing 
data  circuits,  Member  States  may  decide  to  sample  the  statistical  units 
(enterprises) and send a reduced questionnaire. Those units drawn in the samples 
may  be  obhged  (at  the  discretion  of  each  Member  State)  to  give  honest  and 
complete information within the prescribed deadlines. 

27 

What economic effect is the proposal  likely to have? 

on employment 
on investment and the creation of new businesses 
on the competitive position  of businesses 

The economic effects will be indirect in so far as it is expected that the Regulation 
will  improve  the  quality  and  availability  of  statistics  on  insurance  services  at 
Community level, thus improving transparency on the effectiveness  of the internal 
market  and  on  the  competitiveness  of  enterprises  in this  sector.  In general,  the 
competitiveness  of  the  businesses  increases  as  decision  takers  have  better 
information on the insurance markets in other Member States. Therefore, they will 
be  able  to  improve  their  corporate  and  investment  strategies  and  increase  the 
internationalisation of their businesses. More competitive insurance services with a 
broader range of products offered to final customers will be achieved. 

4.1. 

Costs 

In accordance with the  18th Declaration in the Treaty on the European Union on 
estimated costs under Commission proposals, an attempt is made to evaluate costs 
for the relevant authorities at national level of compiling the information requested 
in the draft Regulation. 

In order to assess the response burden of the proposed Regulation on the business 
community,  the Commission (Eurostat)  - with regard to the knowledge gained in 
elaborating  the  draft  Regulation  and  with  regard  to  the  application  of  the 
Regulation  on  voluntary  basis  (see  also  point  6)  -  estimates  the  costs  on  the 
enterprises  concerned  as  being  marginal.  In  some  Member  States  no  additional 
costs  on  enterprises  at  all  will  arise.  It  is  moreover  thought  that  additional  data 
collections from businesses via national associations can be avoided by introducing 
this Regulation.  It was  indeed  agreed  that the  associations  would  get  some data 
sets  from  Eurostat  which  would  limit  the  data  they  collect  themselves from 
the enterprises. 

Depending  on  the  inclusion  of  the  Regulation's  requirements  in  the  current 
reporting  circuits,  no  or  only  very  marginal  costs  are  expected  at  the  level  of 
national authorities concerned (i.e.  at National  Statistical  Institutes or at National 
Insurance  Supervisory  Authorities).  In Member  States  where  some  very  limited 
data have to be added to the existing data collections limited costs will arise for a 
one-off  adaptation  of the  reporting  returns and internal  data processing  systems. 
After  implementation  of  these  very  limited  adaptations  only  in the  few  Member 
States  concerned,  the  permanent  costs  caused  by  the  collection  of  this  limited 
additional data will be absolutely marginal. 

28 

4.2.  Benefits 

It  is  difficult  to  evaluate  to  what  extent  a  better  understanding  of  the  structure, 
activity,  competitiveness  and  performance  of  the  insurance  services  in  the 
European  Community  resulting  from  harmonized  statistics  will  have  on  the 
creation of enterprises,  employment and on competitiveness.  Any effect will be an 
indirect  one  resulting  from  better  formulation  and  evaluation  of  policies  and 
strategies, at the level of the businesses as well as at the level of political bodies. 

The recent  developments  in  Community  economic  and  social  integration  require 
information for supporting the development  and following the impact of initiatives 
and decisions to be based on more reliable, exhaustive, up-to-date and comparable 
statistics.  Statistical information on insurance services is required for the follow-up 
of  the  internal  market  and  for  insurance  in  particular  for  the  development  and 
appraisal  of  economic,  social,  financial,  sectoral,  competition,  and  enteqmse 
policies.  Furthermore,  international  treaties  such  as  that  instituting  the  General 
Agreements  on  Trade  in  Services  (GATS)  require  harmonized  and  high  quality 
Community  statistics  in  this  area.  In  addition,  insurance  enterprises  themselves 
need information on their activity and performance relative to competitors in their 
sector in national  and international  markets.  Consumers  even  shall  thanks to  this 
information  be better informed  and more  aware of the  new  market  opportunities 
and more competitive prices. 

Finally, the surveys proposed in this Regulation provide an indispensable reference 
for  other  business  statistics  such  as  product  statistics.  It  also  creates  a  solid 
statistical  base for the  compilation  of national  accounts  and balance  of  payments 
statistics  in  this  sector.  This  will  lead  to  a  considerable  improvement  of  these 
derived statistics in this specific sector. 

As  the  benefit  that  will  accrue  from  the  availability  of  harmonized  community 
statistics can not be quantified,  it is equally difficult  to  quantify  the net benefit  of 
these  same  statistics.  However,  the  size  of  the  Community  programmes  whose 
execution  and  evaluation  will  benefit  from  the  availability  of  better  statistics 
suggest that the benefit will considerably outweigh the costs of the data collection 
exercise and the slight extra burden on some enterprises. 

5. 

Does  the proposal  contain measures to  take account of  the specific  situation  of 
small and medium-sized firms (reduced or different requirements etc.)? 

For the data to be collected  (published data or data delivered in the frame of the 
insurance  enterprises),  the  population  concerned 
financial  supervision  of 
line  with  existing  reporting  circuits 
is the total  population.  This 
in Member States  which 
enterprises. 
authorized 
affecting 
Nevertheless, Member  States  are free to  exclude  the  enterprises  mentioned  in 
Article  3  of Council  Directive 73/239/EEC  and Article  2(2)  and (3),  3  and  4  of 
Council Directive 79/267/EEC, 
i.e.  very  small  businesses  of  often  only 
local importance. 

is 
are 

all 

in 

29 

For  the  data  which  is  not  yet  part  of  existing  data  collections  and  not  available 
from  other  sources,  Member  States  are  free  to  organize  sample  surveys.  This  is 
laid down in Article 6 of Council  Regulation  No 58/97. 

In the  past,  Member  States  may have  used  surveys  with  a threshold  (or  cut-oft), 
below  which  enterprises  are  only  facing  reduced  reporting  burden.  This threshold 
could often  have been in line with the alleviation as mentioned  above (i.e.  referring 
to  small  businesses  of  local  importance  only).  As  it  is  impossible  to  compare 
heterogeneous  statistics between  countries it is necessary to compile results which 
are  representative  to  the  whole  population  and  to  allow  only  alleviation  to 
businesses  of  very  limited  economic  importance.  This  is  in  particular  important 
with regard to the structure of the European insurance markets. 

However  this  does  not  mean  that  all  enterprises  have  to  be  questioned  on  the 
limited  data not yet  included  in existing  data  collections.  The use of sampling and 
methods of statistical inference  (expressly permitted by Regulation  No  58/97) will 
thoroughly  limit  the  amount  of  additional  requirements  to  the  units  concerned. 
This  is  particularly  true  for  smaller  enterprises  which  could  even  completely 
exempted from any additional requirements. 

Where  small  and  medium  sized  enterprises  are  included  in  the  sampling  process, 
the  possibility  of  not  inquiring  those  entities  is  open  to  the  Member  States,  who 
would  then  need  to  use  statistical  inference  methods  to  compile  the  full  list  of 
variables for the population  considered. 

As  the  structure  of  this  sector  mainly  consists  of  larger  or  medium  sized 
enterprises  already used  to  detailed  reporting  systems for  purposes  of  publication 
or  supervision  and  as smaller businesses of limited  importance  may be  completely 
exempted  from  the  data  collection,  it  would  be  inappropriate  to  fix  additional 
thresholds in the legislation. The Member  States are in better position to judge the 
usefulness  of these practices. 

Bearing  in  mind  the  current  practices  in  the  Member  States  it  is  very  likely  that 
they  will  all  make  use  of  some  or  all  of  the  possibilities  as  laid  down  above. 
However  as the competent  national  authorities  taking  over  the  statistical  function 
of  compiling  aggregated  data  on  insurance  enterprises  are  often  the  insurance 
supervisory  authorities  and  not  the  national  statistical  institutes,  their  methods  of 
acquiring  the very limited  information  not  yet  collected  may be different.  It  might 
well  be  that  national  questionnaires  already  in  use  are  enlarged  with  the  very 
limited data not collected yet in some Member States. 

Consultation 

6. 

List  of the organizations which have been consulted  on  the proposal  and  outline 
their main views 

A  detailed  analysis  of  the  needs  for  statistics  in  the  services  sector  (where  no 
harmonized  Community  surveys  exist  at  present)  was  already  prepared  for  the 
purpose  of  the  Council  Regulation  No  58/97  concerning  structural  business 
statistics. This looked  at the needs  of various  Commission  services  as well  as the 
needs expressed at national level. 

30 

The principal users of the insurance services statistics within the Commission have 
been consulted during the preparation of the draft  legislation. 

The  National  Statistical  Offices  and  the  Insurance  Supervisory  Authorities 
responsible for  data collections have been consulted  on many occasions during the 
preparation  of this text.  This draft  Regulation  was indeed  presented  and discussed 
at  the  meetings  of  the  relevant  working  group  (last  meeting  of  this  group  in 
July  1996) in Eurostat  where both  delegates of the competent  national  authorities 
and  representatives  of European  professional  associations  and  other  international 
organizations  were  present.  DG  XV  of  the  Commission  (with  its  relevant  unit) 
participated  very  actively  in  the  meetings  of  this  working  group.  The  proposal 
follows  closely  the  needs  for  statistical  information  in  this field as  expressed  by 
DG XV.  A  very  close  dialogue  has  been  undertaken  during  the  drafting  of  the 
methodological  manual  which  will  support  this  legislation  at  technical  and 
methodological level. 

taken  place  at 

this  draft  Regulation  have  also 

Discussions  on 
the 
Statistical Programme  Committee  (SPC)  and  the  Insurance  Committee  (IC).  The 
draft  Regulation  was  submitted  to  the  IC  in  April  1996  and  to  the  SPC  on 
17 March  1997.  Both  Committees  support  the  legislation.  It  was  particularly 
pointed  out  that  the  draft  Regulation  should  be  forwarded  to  the  Council  where 
outstanding details and the consideration  of need for national derogation would  be 
pursued.  However,  reserves  have  been  made  by  some  countries  as  regards  the 
extension  of  the  reporting  requirements  placed  on  the  insurance  businesses. 
Additional form filling burdens on enterprises and  processing burdens for  national 
authorities concerned would be unwelcome. 

Nonetheless,  the  draft  text  is  supported  from  most  of  the  Member  States  which 
have closely been involved in the preparatory work. At the end of the development 
work,  some  Member  States  have  already  commenced  the  implementation  of  the 
draft  Regulation at national level on a voluntary basis. Based  on this experience, it 
can  be  concluded  that  the  costs  on  businesses  as  well  as  the  costs  on  national 
authorities will be very limited in most of the Member States. 

In the  framework  of  the  ongoing  cooperation  with  the  European  Monetary 
Institute, the need for  the Insurance  Services  Statistics in the larger  framework  of 
the statistics needed for the Economic and Monetary Union has been stated. 

31 

FORM CONCERNING THE EFTA COUNTRIES OF THE ÉEA 

/ 

Title of the proposal 

Proposal  for  a Council  Regulation  amending Regulation  No 58/97 concerning  structural 
business statistics 

(The  draft  Regulation  proposed  aims  at  complementing  Council  Regulation 
(EC, Euratom) No 58/97 concerning structural business statistics with a detailed module 
for structural statistics in insurance) 

The impact on the EFTA countries of the EEA 

According to the Protocol of the EEA Agreement on Cooperation in the field of statistics, 
the EFTA states will participate within the framework  of plans for  priority actions in the 
field  of statistical information. 

The  EFTA  countries  of  the  EEA  are  concerned  by  the  draft  Regulation,  and  were 
involved in the discussions on the matter. 

Some  delegates  of  EFTA  countries  took  part  in  the  meetings  of  the  working  parties 
and committees  at  which  the  draft  was  discussed.  The  March  meeting  of  the 
Statistical Programme Committee, where the decision was taken to  send the proposal to 
the Council for adoption, was in an EEA meeting. 

32 

ISSN 0254-1475 

COM(97) 411  final 

DOCUMENTS 

EN 

17  08 

Catalogue  number  :  CB-CO-97-457-EN-C 

ISBN  92-78-24398-1 

Office  for Official  Publications of the European  Communities 

L-2985 Luxembourg 

33