The European Insurance and Occupational Pensions Authority has opened a new consultation round on six legal instruments stemming from the Solvency II review, covering two revised implementing technical standards, two revised guidelines, one new set of regulatory technical standards and one new set of guidelines. The package spans topics from risk margin calculations to supervisory powers aimed at addressing insurers’ liquidity management deficiencies, and is framed as part of EIOPA’s approach to regulatory simplification and burden reduction. The revised ITS proposals cover disclosure templates for supervisory authorities, including additional disclosure related to the new proportionality framework, and targeted changes to matching adjustment approval procedures, including recognition of full diversification where matching adjustment portfolios are not ring-fenced and allowing undertakings to combine matching adjustment liquidity plans with the liquidity risk management plan. On guidelines, EIOPA proposes shortening and simplifying guidance on valuing technical provisions, including updates to reflect the introduction of the lambda factor in risk margin calculation, and revising guidance on ring-fenced funds by deleting several guidelines, updating legal references and reflecting that not all matching adjustment portfolios will be treated as ring-fenced funds following the Solvency II review, resulting in a 29% reduction in the total number of guidelines. The proposed RTS address simplified risk margin calculation in line with changes the European Commission intends to introduce in level 2 provisions, while the proposed new liquidity guidelines set out the form, activation and extent of supervisory powers to reinforce undertakings’ liquidity positions, including conditions for temporarily suspending redemption rights. Stakeholders are invited to submit feedback via EIOPA’s online surveys by 5 January 2025, and responses will be published on EIOPA’s website unless otherwise requested.
European Insurance and Occupational Pensions Authority 2025-10-09
European Insurance and Occupational Pensions Authority launches six Solvency II review consultations on revised technical standards and new liquidity supervision guidelines
The European Insurance and Occupational Pensions Authority has launched a consultation on six legal instruments from the Solvency II review, focusing on regulatory simplification and burden reduction. Key proposals include revised implementing technical standards and guidelines on risk margin calculations, liquidity management, and supervisory powers. The consultation aims to streamline disclosure templates, matching adjustment procedures, and liquidity guidelines.