Slovenia Insurance Supervision Agency outlines how it will apply revised Solvency II proportionality for small and non-complex insurers

The Slovenia Insurance Supervision Agency published a recap of a sustainable finance forum in Ljubljana focused on the growing role of environmental, social and governance (ESG) factors in investment and risk assessment. In its contribution, the agency highlighted that the revision of the Solvency II Directive is expected to introduce a proportionality principle into the insurance sector, and that it would be responsible for identifying which insurers qualify as small or non-complex and for granting associated simplifications once the directive is transposed into Slovenian law. The forum, hosted by the Slovenian Banking Association’s education centre and its sustainable finance committee, brought together financial sector participants and regulators, including the Bank of Slovenia and Slovenia’s Securities Market Agency. Discussion stressed that ESG considerations increasingly affect access to finance and firms’ resilience, while also warning against overly rigid ESG implementation, including strict sector exclusions that could hinder transition financing and formalistic approaches that could lead to greenwashing. The agency also pointed to opportunities for Slovenian insurers to channel capital through responsible investment policies and products, develop ESG-oriented offerings, and use transparent ESG risk reporting to strengthen trust. The proportionality regime in insurance supervision would be operationalised after the revised Solvency II framework is transposed into Slovenian legislation.