European Insurance and Occupational Pensions Authority launches three Solvency II review consultations on group supervision exclusions related undertakings and dynamic volatility adjustment

The European Insurance and Occupational Pensions Authority (EIOPA) has opened three public consultations linked to the Solvency II review, covering draft guidelines on exclusions from group supervision, revised guidelines on the treatment of related undertakings, and a revised supervisory opinion on the use of dynamic volatility adjustment within internal models. The draft guidelines on exclusions from group supervision set out exceptional circumstances in which group supervisors may decide to exclude undertakings from the scope of group supervision, noting that such decisions can have significant consequences for group oversight. The revised guidelines on related undertakings update and clarify existing instructions on identifying and treating related undertakings, including participations, and include simplifications and proposed deletions consistent with EIOPA’s objective to reduce the number of Solvency II guidelines relevant to the insurance industry by 25%. The draft revised opinion on dynamic volatility adjustment aims to align supervisory assessment of internal models with the amended Solvency II Directive, reflecting changes to the volatility adjustment calculation methodology and the introduction of a broader prudency principle for dynamic volatility adjustment. Consultation papers and response instructions are available on the respective consultation pages, with stakeholder feedback requested by 26 June 2025.