General Directorate of Insurance and Pension Funds (DGSFP)


The General Directorate of Insurance and Pension Funds is a Spanish administrative body, dependent on the Secretary of State for the Economy and the Ministry of Economic Affairs, which supervises and controls the insurance sector, as well as its relationship with clients.

The General Directorate of Insurance and Pension Funds is, therefore, a supervisory body, managed by the Secretary of State for the Economy and the Ministry of Economic Affairs. This supervises that the entities that operate in this sector in Spain comply with the imposed regulation. To do this, it has the capabilities to regulate the sector, supervise it, provide guidelines, among other matters that guarantee the proper functioning of this sector. Likewise, it ensures compliance with said regulations, both in terms of conditions and clauses, customer relations, among other aspects.

It should be noted that many insurance companies manage pension funds, as well as insurance through which Spaniards save for their retirement. All these insurances, such as PIAS or unit linked, are also under the supervision of this body. For this reason, it receives this name, as it is in charge of controlling, in addition to the typical civil liability insurance, others such as life insurance, savings, as well as all those products (insurance) offered by insurers and financial or banking entities in the country.

Finally, as with the Deposit Guarantee Fund for Credit Institutions in Spain, the DGSFP, which is how this body is known here by its acronym in Spanish, has, among its functions, guarantee that the insurer returns the capital contributed to the clients. This, despite the fact that it is bankrupt or cannot comply with the obligation to pay. For this, the DGSFP is responsible for the return of the capital, and that the bankruptcy does not cause any damage to the insured.

Functions of the General Directorate of Insurance and Pension Funds (DGSFP)

Among the functions of the General Directorate of Insurance and Pension Funds in Spain, the regulations establish the following:

  • The preparation and preparation of regulatory projects in the field of insurance and pension funds.
  • Coordination of relations with the institutions of the European Union, with the supervisors of other States and with international organizations.
  • The answer to the queries made in matters of private insurance and reinsurance, insurance and reinsurance distribution, and pension plans and funds.
  • The analysis of the documentation that entities must submit to facilitate the control of their solvency and activity.
  • Continuous financial supervision.
  • The supervision by inspection of the operations and the activity carried out by the persons and entities that act in the market.
  • The monitoring of the measures imposed on the persons and entities subject to supervision. This, including those referring to situations of financial deterioration and special control measures procedures.
  • Verification of financial and actuarial calculations applied in insurance and reinsurance operations, and by pension plans and funds and their managing entities.
  • The development and management of computer systems and applications used in supervisory functions.
  • Authorization procedures for the calculation of regulatory capital. This, including those referring to internal models or specific parameters and other procedures derived from the risk-based solvency regime.
  • Monitoring and participation in the international supervisory colleges of insurance and reinsurance entities derived from the Solvency II regime. In addition, collaboration with other supervisors in the supervision of financial conglomerates and the analysis of the macroprudential aspects of the insurance and pension fund sectors.
  • The control of compliance with the precise requirements for access and expansion of the insurance and reinsurance activity and the requirements of the administrators, partners and directors of the entities that carry out said activity and the other natural and legal persons subject to regulation private insurance.
  • The supervision of mergers, groupings, portfolio transfers, transformations, splits and other structural operations between insurance companies, and initiatives on measures and operations that lead to an improvement in the sectoral structure or in that of any of its branches.
  • The control of the requirements for the authorization of pension plans and funds and their management entities.
  • Prior control for access to the insurance and reinsurance distribution activity.
  • Supervision of market conduct and practices of insurance and reinsurance entities, insurance and reinsurance intermediaries. Likewise, for all those who operate in the market.
  • Carrying out studies on the insurance and pension fund sectors.

Structure of the General Directorate of Insurance and Pension Funds (DGSFP)

The General Directorate of Insurance and Pension Funds (DGSFP) presents a series of general sub-directorates. They develop each of these functions previously described:

  • Subdirectorate General for Regulation and International Relations: Prepares regulatory projects, coordinates relations with international organizations and answers the queries made.
  • Subdirectorate General of Inspection: It is in charge, in general terms, of everything related to the supervision and inspection of the entities that operate in the market, in Spain. It is also in charge of the relationship with the Accounting and Auditing Institute (ICAC). This, in relation to the regulation and interpretation of accounting and auditing standards. Similarly, it coordinates with the Insurance Compensation Consortium in the exercise of its settlement activity for insurance companies.
  • The Subdirectorate General for Solvency: Among other functions, it controls the financial situation of entities on a permanent basis. Likewise, it checks all the calculations, as well as the documentation issued by these entities.
  • The General Sub-Directorate for Authorizations, Market Conduct and Distribution: It is in charge of everything related to market access, the conduct of distributors within it, as well as the products that are marketed in it.
  • The Subdirectorate General for Organization, Studies and Complementary Social Welfare: Among other functions, it is in charge of conducting studies on the insurance and pension fund sectors.

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