EIOPA publishes technical advice on SII’s new proportionality framework

Written by Adam Cadle

31/01/2025

EIOPA has published its technical advice on the implementation of the new proportionality framework under Solvency II, requested by the European Commission.

This advice endorses the methodology for classifying insurance undertakings as ‘small and non-complex’, as outlined in the amended Solvency II Directive, and puts forward a set of conditions for granting similar proportionality measures to (re)insurers that do not classify as small and non-complex.

The recent review of the Solvency II Directive introduces a new proportionality framework to improve the effective application of proportionality principles in the prudential framework for European (re)insurers.

For undertakings that can make use of them, these new rules will result in a reduction of several requirements (including governance and quantitative requirements), taking into account the nature, scale and complexity of the undertakings’ risk.

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