The European Commission adopts amendments to Delegated Regulation (EU) 2015/35 under Solvency II
On 29 October 2025, the European Commission adopted amendments to Delegated Regulation (EU) 2015/35 under Solvency II (Directive (EU) 2025/2).
This concludes the review of the supervisory framework, with the stated objectives of making it more effective, proportionate and supportive of insurers’ long-term investments in the real economy.
The Regulation will be submitted to the European Parliament and the Council, which will have a three-month period to examine it, extendable by a further three months. If no objections are raised, the act will enter into force and start applying simultaneously with Directive (EU) 2025/2 – on 30 January 2027.
Key amendments to the Delegated Regulation:
- Easier access to the long-term equity regime – facilitating investments in European undertakings, including in private equity and venture capital.
- Changes to long-term guarantee measures – smoothing the impact of short-term market fluctuations on solvency positions.
- Proportionality – new simplified regimes for small and non-complex undertakings (SNCUs), with clear eligibility criteria and simplified governance, reporting and valuation requirements.
- Simplified supervisory reporting – streamlining the content of the SFCR and RSR, with the SFCR divided into two parts (a concise version for consumers and a detailed version for the market).
- Updated parameters for catastrophe risk – reflecting new climate data and trends to enhance the sector’s resilience.
- Changes to liability valuation methodologies – refining the extrapolation of the risk-free interest rate, improving the volatility adjustment and matching adjustment, and revising the risk margin formula (introducing a “decay factor”).
- Encouraging investments in securitisations – lower risk factors and better alignment with banking rules.
Questions and answers on Delegated Regulation (EU) 2015/35 under Solvency II
The Regulation and its annexes in English can be found at the following links:
- Commission Delegated Regulation amending Delegated Regulation (EU) 2015/35 as regards technical provisions, long-term guarantee measures, own funds, equity risk, spread risk on securitisation positions, other standard formula capital requirements, reporting and disclosure, proportionality and group solvency (not in force until it is published in the Official Journal)
- Annexes to the Commission Delegated Regulation amending Delegated Regulation (EU) 2015/35 as regards technical provisions, long-term guarantee measures, own funds, equity risk, spread risk on securitisation positions, other standard formula capital requirements, reporting and disclosure, proportionality and group solvency (not in force until it is published in the Official Journal)
