EIOPA launches Solvency II Supervisory Review Process consultation

The Guidelines are addressed to supervisory authorities operating under Solvency II and relate directly to Article 36 of the Solvency II Directive. EIOPA notes that further relevant provisions for the SRP are in particular Articles 27, 29, 34, 71, 213(2), 248, 249, 250 and 255 of the Directive.

EIOPA states that the Guidelines are developed in accordance with the Solvency II Directive and Article 16 of Regulation (EU) 1904/2010, the EIOPA Regulation. Under Article 16(2) of that Regulation, EIOPA carries out public consultations before issuing and amending its guidelines and recommendations, which frames the current SRP consultation process.

Alignment with Solvency II review and supervisory practice

EIOPA describes the primary objective of the revision as updating the SRP Guidelines by clarifying existing instructions where necessary following the Solvency II review and by bringing emerging risks within scope. The proposed amendments pursue two key goals: aligning existing provisions with the latest regulatory developments and new supervisory best practices, and incorporating new processes to address risks and trends that have emerged since the Guidelines were first adopted.

EIOPA adds that, in line with its commitment to regulatory simplification, it has deliberately limited the amendments to those strictly necessary to support the implementation of Solvency II and to promote supervisory convergence across the EU. The authority states that the Guidelines, while primarily aimed at national supervisors, are expected to indirectly benefit insurers and reinsurers through more consistent and transparent supervisory engagement.

New supervisory processes and thematic extensions

The draft revised Guidelines introduce new sections in several supervisory process areas. These include business model analysis, joint on-site inspections, early intervention measures, pre-emptive recovery planning and the supervision of conduct of business. The same guidance extends the SRP to IT and cyber risks and to the use of Supervisory Technology (SupTech) in supervisory work.

These additions are framed within the broader objective of achieving a risk-based, forward-looking and proportionate supervisory approach under the SRP. EIOPA links these process enhancements to the need to address risks and trends that have emerged since the original Guidelines were adopted.

Consultation process and next steps

EIOPA invites stakeholders to provide feedback on the Consultation Paper by responding to the questions via an online survey no later than 24 September. All responses to the consultation will be published on EIOPA’s website unless respondents explicitly request otherwise.

The consultation on the proposal for revised Guidelines on the supervisory review process is currently marked as closed on EIOPA’s consultation register. EIOPA has not specified in the consultation materials when final revised Guidelines will be issued.

Sources: eiopa.europa.eu · eiopa.europa.eu