The European Commission has published for stakeholder feedback a draft delegated act reviewing the Solvency II Delegated Regulation, proposing changes to technical rules on the valuation of insurers’ liabilities, the calculation of solvency requirements, reporting and disclosure obligations, group supervision and related areas. The amendments are intended to remove deterrents to insurers supporting long-term financing of the European economy while preserving financial stability and policyholder protection. Key proposals include a dedicated treatment for insurers’ long-term equity investments, measures to reduce the impact of short-term market volatility on solvency positions, and draft provisions to remove barriers to insurers’ securitisation investments by reducing risk factors for both simple, transparent and standardised (STS) and non-STS securitisation. The package also includes simplifications to supervisory reporting and disclosure, particularly for smaller insurers with low-risk business models, through extended reporting deadlines and greater proportionality, alongside a recalibration of capital requirements for natural catastrophe risks to reflect latest scientific insights related to climate change. Feedback is open via the Commission’s Have your Say Portal until 5 September 2025, and contributions will inform a proposal expected in the third quarter of 2025.
European Commission 2025-07-18
European Commission consults on Solvency II delegated act changes to encourage insurers’ long-term equity and securitisation investment
The European Commission's draft delegated act revises the Solvency II Delegated Regulation, seeking feedback on insurers' liability valuation, solvency requirements, and reporting obligations. Key proposals aim to facilitate long-term equity investments, mitigate short-term market volatility impacts, and ease securitisation investment barriers. The package also suggests simplified reporting for smaller insurers and recalibrated capital requirements for natural catastrophe risks.