EIOPA has launched a new batch of six consultations on legal instruments (here) after Solvency II Review. The consultations include new and revised technical standards and guidelines, covering topics ranging from the calculation of the risk margin to supervisory powers for addressing deficiencies in insurers’ liquidity management.
Consultations
Consultation on revised ITS on disclosures templates (here)
For this ITS, EIOPA proposes targeted adjustments that reflect amendments made to relevant regulatory texts in recent years, including those the European Commission intends to make in the ongoing review of Solvency II such as requiring additional disclosure from supervisory authorities on the application of the new proportionality framework.
Consultation on revised ITS on matching adjustment approval (here)
Regarding the procedures for the approval of matching adjustment (MA), EIOPA considers certain targeted changes necessary. These include adjustments to reflect that full diversification with MA portfolios that are not ring-fenced may be taken into account in the solvency assessment and that undertakings may combine liquidity plans for their MA with the liquidity risk management plan.
Consultation on revised Guidelines on the valuation of technical provisions (here)
EIOPA’s proposal on the Guidelines for the valuation of technical provisions shortens, simplifies, and removes certain guidelines on the calculation of the risk margin while maintaining clear guidance on their application. Guideline 62 is proposed to be updated to reflect the introduction of the lambda factor in the risk margin calculation.
Consultation on revised Guidelines on ring-fenced funds (here)
A review of the Guidelines on ring-fenced funds has led to the proposed deletion of several guidelines and the update of certain legal references to address inconsistencies, resulting in a 29% reduction in the total number of guidelines. Moreover, amendments to the guidelines reflect that, following the Solvency II Review, not all MA portfolios will be treated as ring-fenced funds.
Consultation on RTS on the simplified calculation of the risk margin (here)
These proposed RTS reflect the changes the European Commission intends to implement regarding the general calculation of the risk margin in the level 2 provision on the simplified calculation of the risk margin.
Consultation on Guidelines on supervisory powers on liquidity vulnerabilities (here)
The Solvency II Review has introduced a mandate for EIOPA to develop Guidelines on supervisory measures aimed at addressing deficiencies in undertakings’ liquidity management. These proposed new Guidelines outline the form, activation and extent of powers that supervisors may exercise to reinforce the liquidity position of undertakings, and specify the conditions under which redemption rights may be temporarily suspended.
The secretariat of Insurance Europe will assess the consultation papers in more detail and prepare the first draft response. The deadline for submissions to EIOPA is 5 January 2026.
Responses prepared by Insurance Europe:
- Consultation on Revised ITS on the treatment of matching adjustment
- Consultation on Guidelines on supervisory powers on liquidity vulnerabilities
- Consultation on Revised ITS on disclosure templates
- Consultation on Revised Guidelines on the valuation of technical provisions
- Consultation on RTS on the simplified calculation of the risk margin