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1 SOLVENCY II
1.1 ESMA consults on revised Guidelines on the Supervisory Review Process
On 2 July 2025, EIOPA launched a public consultation on its draft revised Guidelines on the Supervisory Review Process. The aim of the consultation is to update the Guidelines by clarifying existing instructions and bringing emerging risks within the scope of the revised Solvency II Directive1.
The goals of the proposed amendments are to align the existing provisions with the latest regulatory developments and new supervisory best practices and to incorporate new processes to address risks and trends that have emerged since the publication of the Guidelines.
The draft Guidelines include new sections such as business model analysis, joint on-site inspections, early intervention measures, pre-emptive recovery planning, and the supervisory conduct of business. The revisions are designed to reflect the outcome of the Solvency II review and to ensure more effective supervision and financial stability in Europe's insurance sector.
The Consultation was open until 24 September 2025, after which time all responses were published on EIOPA's website unless otherwise requested.
A full copy of the consultation paper can be found here.
1.2 EIOPA publishes final reports on draft technical standards and guidelines under amended Solvency II Directive
On 14 July 2025, EIOPA published its first batch of reports relating to technical standards and guidelines under the Solvency II Directive2 (as amended)3.
EIOPA published the following:
- A final report on draft regulatory technical standards (RTS) relating to undertakings under dominant or significant influence or managed on a unified basis. The full report can be accessed here.
- A final report on draft RTS specifying the conditions and criteria to be used by supervising authorities when determining which activities when carried out by insurance or reinsurance undertakings under the right of establishment or under the freedom to provide services are of relevance with respect to the host Member State's market. The full report can be accessed here.
- A final report on revised implementing technical standards (ITS) on lists of regional governments and local authorities' exposures that are to be treated as exposures to the central government. The full report can be accessed here.
- A final report on revised guidelines on undertaking specific parameters. The full report can be accessed here.
In response to feedback, minor changes have been made to the draft RTS. No changes have been made to the guidelines or draft ITS. All of the draft technical standards have been submitted to the European Commission for adoption.
1.3 European Commission consults on amending Solvency II Delegated Regulation
On 18 July, the European Commission published a consultation on a draft Commission Delegated Regulation4 amending the Solvency II Delegated Regulation5.
The Commission is proposing amendments to the Solvency II Delegated Regulation in light of the amendments that the Solvency II Amending Directive introduces to the Solvency II Directive6 . These amendments will lead to many of the provisions of the Solvency II Delegated Regulation becoming obsolete when the Solvency II Amending Directive7 begins to apply from the 30 January 2027.
The Commission contends that the amendments to the Solvency II Delegated Regulation aim to remove deterrents for insurers to support the long-term financing of the EU economy, while preserving financial stability and ensuring policyholder protection. Among the proposed changes in the draft Delegated Regulation are amendments to: technical provisions, longterm security guarantee measures, own funds, standard formula capital requirements, reporting and disclosure, proportionality, and group solvency.
The consultation remained open for comment until 5 September 2025. The Commission intends to adopt the amending Delegated Regulation in Q3 2025. The Delegated Regulation will enter into force 20 days after publication in the Official Journal of the European Union and will apply from 30 January 2027.
The consultation can be accessed here.
1.4 European Commission renews equivalence determinations for Brazil, Japan and Mexico
On 17 September 2025, the European Commission adopted a Delegated Decision on the renewal of determinations that the solvency frameworks for insurance and reinsurance undertakings in Brazil, Japan and Mexico are provisionally equivalent to the requirements set out under the Solvency II Directive.
In June and November 2015, the Commission had adopted Delegated Decisions on the provisional equivalence of these solvency frameworks for insurance and reinsurance undertakings which were due to expire on 1 January 2026.
As provided for under Article 227(6) of the Solvency II Directive, provisional equivalence may be extended for a further ten years where the criteria under 227(5) is deemed to be met. Following consultation with EIOPA, it was decided that these criteria will continue to be met by Brazil, Japan and Mexico.
The new Delegated Decision renews the provisional equivalence for the above-named countries from 1 January 2026 until 31 December 2035.
The text of the new Delegated Decision can be accessed here.
2 EIOPA
2.1 EIOPA consults on revised ITS and guidelines on supervisory reporting and public disclosure
On 10 July 2025, EIOPA published a consultation paper8 on proposals for implementing technical standards (ITS) and guidelines on supervisory reporting and public disclosure supplementing the Solvency II Directive9 . The aim of the proposals are to reduce and simplify the reporting burden for firms subject to Solvency II and include:
- An ITS on the templates for the submission by (re)insurance undertakings to their supervisory authorities of information necessary for their supervision. The ITS can be accessed here.
- Guidelines on reporting for financial stability purposes. The Guidelines can be accessed here.
- Guidelines on the supervision of branches of third-country insurance undertakings. The Guidelines can be accessed here.
The deadline for responses is 10 October 2025, the ITS and guidelines will apply from 30 January 2027.
The full consultation paper can be accessed here.
2.2 Final versions of EIOPA guidance on mass-lapse reinsurance and reinsurance termination clauses
On 15 July 2025, EIOPA published the final versions of its guidance for supervising mass-lapse reinsurance and reinsurance termination clauses designed to promote convergent supervisory approaches across the EU. This guidance was published following EIOPA's 2024 Consultation Paper and takes the form of two Annexes to EIOPA's July 2021 opinion on the use of risk-mitigation techniques by insurance undertakings.
Annex 1 provides detailed guidance to supervisors on the prudential treatment of mass-lapse reinsurance. It mostly provides guidance on how supervisors should assess the impact of certain key elements of mass lapse reinsurance treaties on the effectiveness of transfer risk and on the solvency capital requirement (SCR) of the undertaking involved.
Annex 2 focuses on certain features of reinsurance agreements' termination clauses that may undermine the effective transfer of risk. It also examines cases where reinsurance contracts involve asset transfers and includes terms that on termination permit the reinsurer to unconditionally retain all transferred premiums and assets while simultaneously being freed from any remaining obligations.
The consultation can be accessed here.
2.3 EIOPA opinion on AI governance and risk management
On 6 August 2025, EIOPA published the final version of its opinion10 and impact assessment11 on artificial intelligence (AI) governance and risk management. The opinion has been issued in light of legislation affecting the sector: the Solvency II Directive and Delegated Regulation, the Insurance Distribution Directive and Delegated Regulation and the digital operational resilience act (DORA).
The opinion is aimed at national competent authorities (NCAs) and explains supervisory expectations in the context of AI systems. The approach taken by EIOPA in the opinion is risk-based and proportionate and aims to set a base line for the use of AI in the insurance sector. It advises firms to assess the risks of different AI use cases and develop governance and risk management frameworks proportionate to the risks. The opinion highlights the key principles that need to be embedded into existing risk management frameworks and adapted to the different specificities of the AI systems used.
The full opinion can be accessed here.
2.4 EIOPA consults on IRRD technical standards
On 22 July 2025, EIOPA published the following consultation papers related to the implementation of the Insurance Recovery and Resolution Directive (IRRD):
- A consultation paper relating to draft regulatory technical standards (RTS) on functioning of the resolution colleges. These RTS contain provisions related to the establishment and operation of resolution colleges and processes for reaching joint decisions on the development of group resolution plans. Additionally, they cover the assessment of resolvability, measures to address impediments to resolvability and the governance of cross-border resolution groups. A full copy of the consultation can be accessed here.
- A consultation paper relating to draft implementing technical standards (ITS) on resolution reporting. These ITS contain provisions specifying procedures and a minimum set of standard forms and templates for the provision of information to insurers by resolution authorities to enable resolution authorities to develop and implement resolution plans. The consultation paper can be accessed here. The draft templates can be accessed here while instructions on how to complete them can be accessed here.
The deadline for responding to the consultation is 31 October 2025.
Member States shall apply measures implemented from the IRRD by 30 January 2027.
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Footnotes
1. Directive 2009/138/EC
2. Directive 2009/138/EC
3. Directive (EU) 2025/2
4. Ares(2025)5843909
5. Commission Delegated Regulation (EU) 2015/35
6. 2009/138/EC
7. Directive (EU) 2025/2
8. EIOPA-BoS-25/223
9. Directive 2009/138/EC
10. EIOPA-BoS-25-360
11. EIOPA-BoS-25-363
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