There are two types of direct insurance: life insurance and non-life insurance.
The most common form of insurance is called direct insurance, where institutional units insure themselves with an insurer against the financial consequences of specific risks.
Subject to Article 14, authorisation shall be granted for a particular class of direct insurance as listed in Part A of Annex I or in Annex II.
To that sum there shall be added the amount of claims paid in respect of reinsurances or retrocessions accepted during the same periods and the amount of provisions for claims outstanding established at the end of the previous financial year both for direct business and for reinsurance acceptances.
