The European Insurance and Occupational Pensions Authority (EIOPA) has today published new Guidelines on exclusions from group supervision, a set of revised Guidelines on the treatment of related undertakings, and an updated Opinion on the supervisory assessment of internal models with dynamic volatility adjustments.
These publications and updates follow from the recent review of the Solvency II framework and reflect efforts to streamline and simplify legislative texts for insurers and supervisors without impairing the effectiveness of supervision.
Guidelines on exclusions from group supervision
Responding to the mandate included in the amended Solvency II Directive, EIOPA has developed new Guidelines to specify the conditions under which group supervisors may decide to exclude undertakings from group supervision. The Guidelines clarify that such exclusions are permissible only in exceptional circumstances and must be duly justified. The rules aim to promote consistent practices across the European Economic Area (EEA) and ensure similar and adequate levels of protection to all policyholders.
Revised Guidelines on the treatment of related undertakings
The original Guidelines from 2015 have been reviewed to reflect changes to the Solvency II Directive on the definition of participations in financial and credit institutions and their deduction from own funds. The number of guidelines has been reduced by 33% as a result of the review.
Revised Opinion on the assessment of internal models
A revision of EIOPA’s 2017 Opinion on the supervisory assessment of internal models was required following the introduction of a new volatility adjustment framework in the regulation. The updated Opinion in particular takes into account an enhanced prudency principle for the dynamic volatility adjustment.
Details
- Publication date
- 5 December 2025