If a life assurance company established in Germany sells policies to residents in Ireland, which regulator supervises its solvency?

• A. The Irish Central Bank.
• B. BaFin.
• C. EIOPA.
• D. ESMA.

Answer: (B)

Under the Solvency II framework, the regulator in the insurer’s home country has the primary responsibility for supervising solvency. Since the life assurance company is established in Germany, BaFin is the regulator that oversees its solvency, even when policies are sold to Irish residents. The Irish Central Bank would take lead for host-market oversight and policyholder protection in Ireland, but solvency supervision remains with the home regulator. EIOPA coordinates EU-wide supervisory consistency, but it does not directly supervise individual insurer solvency, and ESMA focuses on securities markets rather than insurance.