EIOPA consults on new rules related to group supervision, related undertakings and volatility adjustments following Solvency II Review

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a series of public consultations related to the review of Solvency II. The three consultations opened today focus on guidelines on exclusions from group supervision, revised guidelines on the treatment of related undertakings and a revised opinion on the use of volatility adjustments. 

Draft Guidelines on exclusions from group supervision

The first consultation presents draft Guidelines on the exclusion of undertakings from the scope of group supervision. Group supervisors might decide to exclude undertakings from group supervision. These exclusions may have significant consequences for group supervision. The decision of such exclusions should be made in exceptional circumstances that are specified by the draft Guidelines now opened for consultation. 

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Draft revised Guidelines on the treatment of related undertakings

The second consultation concerns Guidelines on how to identify and treat related undertakings including participations under Solvency II. The revised Guidelines published today update and clarify existing instructions in light of the Solvency II Review. Moreover, some guidelines have been simplified or even proposed for deletion, in line with EIOPA’s general objective to reduce the number of existing Solvency II guidelines that are relevant to the insurance industry by 25%.

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Draft revised Opinion on dynamic volatility adjustment

The third consultation relates to the supervisory assessment of internal models, including the use of dynamic volatility adjustment (dynamic VA or DVA) within them. The draft Opinion aims to ensure alignment with the amended Solvency II Directive, which has revised the methodology for calculating volatility adjustments and introduced a broader prudency principle for the DVA in the regulation.

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The Consultation Papers themselves and instructions on how to respond to them are available on the specific consultation page for each topic. EIOPA invites stakeholders provide their feedback to the consultations no later than 26 June 2025.