The European Insurance and Occupational Pensions Authority (EIOPA) has submitted three draft technical standards to the European Commission and published revised guidelines to support implementation of the reviewed Solvency II Directive. The package covers identification of insurance undertakings within groups, assessment of significant cross-border activity, the treatment of certain public-sector exposures in capital calculations, and updated guidance on undertaking-specific parameters. The draft Regulatory Technical Standards (RTS) set factors for identifying insurance undertakings under dominant or significant influence, and those managed on a unified basis, for group supervision purposes. Separate RTS specify conditions and criteria host supervisors should consider when determining whether an undertaking’s cross-border activities are relevant for their market under the Solvency II review’s enhanced home-host cooperation framework. The draft Implementing Technical Standards (ITS) update the list of regional governments and local authorities whose exposures should be treated like central government exposures in the standard formula, with a 0% risk factor for spread risk and concentration risk. The revised Guidelines on undertaking-specific parameters update legal references and streamline the guidance without changing its intended meaning, reducing the number of individual guidelines by 21%. The European Commission has three months to decide whether to adopt the draft technical standards; once adopted, they are intended to guide implementation of the Solvency II framework’s new features.
European Insurance and Occupational Pensions Authority 2025-07-14
European Insurance and Occupational Pensions Authority submits three Solvency II technical standards to the European Commission and revises guidelines on undertaking-specific parameters
The European Insurance and Occupational Pensions Authority (EIOPA) submitted three draft technical standards to the European Commission and published revised guidelines for Solvency II Directive implementation. The package addresses insurance undertakings within groups, cross-border activity assessment, public-sector exposure treatment in capital calculations, and updates on undertaking-specific parameters. The European Commission has three months to decide on adopting these standards, which aim to guide Solvency II framework's new features.