In the run-up to the European Council meeting in March 2026, the European insurance and reinsurance sector highlighted the need for targeted measures to simplify the regulatory framework and reduce administrative burden in financial services.
In its position paper, Insurance Europe emphasises that simplification should be a key element of efforts to enhance the European Union’s competitiveness, deepen the Single Market and channel more capital towards Europe’s strategic priorities.
The insurance sector plays a significant role in supporting the economic resilience of the EU. With investments amounting to €9.5 trillion, around 70% of which are within the Union, it provides substantial long-term capital to support the economy, including the green and energy transition, innovation and the development of strategic industries.
The sector also supports households and businesses through risk management, as well as by providing savings and pension solutions. In Bulgaria, the insurance sector also plays an important role as an institutional investor and is among the key participants in the financial market.
The accumulation of overlapping and complex regulatory requirements is increasingly limiting insurers’ ability to fulfil this role. In this context, the sector calls for a meaningful Financial Services Omnibus package that would lead to a measurable reduction in administrative burden.
Simplification does not mean deregulation, but rather better and more proportionate regulation that balances consumer protection and financial stability with the need for an efficient and predictable regulatory environment.
This approach is in line with the understanding of the Bulgarian insurance sector regarding the need for a balanced regulatory framework that supports market development without creating disproportionate administrative burden.
The sector’s proposals focus both on limiting new regulatory requirements and on reviewing the existing framework.
Limiting new regulation
withdrawal of the proposal for Financial Data Access (FiDA)
no introduction of minimum harmonisation of insurance guarantee schemes (IGS)
Simplifying the existing framework
applying a “stop-the-clock” approach to the Insurance Recovery and Resolution Directive (IRRD), through a temporary pause/postponement of its application in order to review its scope, proportionality and timelines
targeted adjustments to Pillar 2 and Pillar 3 requirements under Solvency II
further simplification of the EU Taxonomy framework
review of disproportionate accounting and auditing requirements, particularly for small and medium-sized enterprises
avoiding overlaps and reducing administrative burden under the Digital Operational Resilience Act (DORA)
Implementing these measures would allow the insurance sector to focus on its core role – supporting households and businesses and channeling long-term investments towards Europe’s strategic priorities.
In this context, simplifying the regulatory framework is seen as a key factor for enhancing the EU’s competitiveness, strengthening the Single Market and creating conditions for sustainable economic growth.
The full position paper is available here.
