Solvency II Update: Key Takeaways from EIOPA’s Latest Webinar

EIOPA’s most recent webinar in June 2025 provided insurers with an overview of the planned amendments to supervisory reporting and public disclosure under Solvency II. Earlier this year, we had already informed you about the adopted revision of the Directive. As part of the European Commission’s “Simplification” initiative, these changes aim to reduce reporting obligations by at least 25% (or 35% for SMEs) and to lower the administrative burden accordingly. 

The proposed amendments will be subject of a public consultation from July to October 2025. The final versions are scheduled to enter into force in January 2027. 

The consultation will relate to the following technical standards and guidelines: 

• ITS 2023/894 – supervisory reporting: updated templates required by supervisory authorities  

• ITS 2023/895 – public disclosure: revised procedures, formats, and templates for Solvency and Financial Condition Reports.  

• revised guidelines for supervising branches of third-country insurance undertakings.  

• updated guidelines for Financial Stability Reporting.  

Key updates include changes arising from the Level 1 and Level 2 reviews, corrections to templates and instructions, a limited set of new data requirements, and proposals to reduce reporting frequency and retire redundant templates.  

All proposals are still preliminary and open to stakeholders’ feedback. Insurers are encouraged to engage actively in the consultation process to help shape the final standards.  

In the following we have summarised the key focus areas for you:   

Focus Area 1: New Requirements for Natural Catastrophe Data  

EIOPA highlighted the growing impact of natural catastrophes and the corresponding increase in economic losses across Europe. Since insurance and reinsurance undertakings are directly exposed to these risks, improved monitoring and data collection are becoming increasingly essential.  

To address this, the upcoming amendments introduce new annual reporting requirements for natural catastrophe (Nat Cat) data. All insurance and reinsurance undertakings, except small, non-complex undertakings (SNCUs), will be required to submit information annually on Nat Cat events that occurred during the year.  

Two new templates will be added to support this: one focused on claims and another one on exposure data. This initiative supports EIOPA’s broader priorities of closing the insurance protection gap and improving visibility on physical climate-related risks.  

Focus Area 2: Pension Data Reporting – Two Options Under Review  

EIOPA addressed ongoing issues in the current reporting of pension entitlements. The current version template S.14.01 includes pension data, but lacks a clear split between occupational and personal pensions, which often leads to unreliable reporting results.   

To improve data quality, EIOPA is considering two options, both involving a merger of templates S.14.01 and E.02.16:  

• Option 1: expand S.14.01 by adding two new columns to categorize pension entitlements. This option ensures consistency across life products, involves fewer setup costs, and causes minimal disruption to existing processes. E.02.16 would be discontinued.  

• Option 2: involves expanding E.02.16 with a dedicated pension template. This option reduces the number of reported data points and offers easier integration of future data needs, though it requires higher upfront setup effort.  

Option 1 is preferred by EIOPA due to its balance between effectiveness and cost.  

Focus Area 3: Long-Term Guarantee Measures (LTGM) and Changes to Extrapolation and Volatility Adjustment  

EIOPA presented upcoming changes to supervisory reporting and disclosure requirements related to Long-Term Guarantee Measures, with a focus on the extrapolation of risk-free rates (RFR) and the Volatility Adjustment (VA).    

For RFR extrapolation, the amended Solvency II Directive introduces a new “phasing-in mechanism” using an alternative methodology for longer maturities. Insurers may adopt this approach following an approval by their national supervisory authority. The following related templates will be updated to reflect this:   

• S.01.02 will include two new attributes: one indicating whether the phasing-in mechanism is used, and another on adjustments to risk-corrected spreads. This amendment is applicable to Solo reporting.  

• S.22.01 will see structural changes, including deletion of obsolete rows and the addition of new columns capturing the impact of the phasing-in mechanism and other transitional measures. The amendment is applicable to Solo and Group reporting.  

Regarding the Volatility Adjustment (VA), the upcoming amendments aim to enhance transparency around undertaking-specific adjustments. Public disclosure will be required for the use of VA and Best Estimate Liability (BEL) by country and currency:   

• S.22.06 will be restructured to capture this data, introducing new disclosure fields and information on undertaking-specific factors. The amendment is applicable to Solo reporting.  

• S.01.02 will be updated to reflect the use of the VA. The amendment is applicable to Solo reporting.  

Focus Area 4: Review of Guidelines on Branch Supervision and Financial Stability Reporting  

These adjustments aim to improve comparability and transparency of LTGM use while supporting a consistent supervisory approach across the EU.  

EIOPA also presented planned updates to the guidelines on the supervision of branches of third-country insurance undertakings and financial stability reporting, both forming part of the broader reporting package review.  

22 out of 61 guidelines are proposed for deletion, which is a 36% reduction. Guidelines 44, 45, and 47, which relate to QRTs, will be amended once burden reduction proposals are finalised.  

In parallel, the Financial Stability Guidelines will also be revised:  

• The threshold for identifying reporting entities will rise from EUR 12 billion to EUR 20 billion in total assets.  

• EIOPA proposes the deletion of three guidelines (GL3, GL16, GL17) and overall simplification of the remaining content.  

These proposed changes are designed to streamline supervisory processes while maintaining the necessary oversight and risk visibility across the sector.  

Timeline: 

• July 2025: Board of Supervisors (BoS) writes procedure approval of the whole package for public consultation  

• July – October 2025: public consultation  

• March 2026: EIOPA to submit the final package to European Commission   

• January 2027: New updates applicable for the reporting on the Fiscal Year 2026 

Our Solvency II Reporting Service  

Our team is closely monitoring all regulatory discussions to ensure that all the updates are implemented seamlessly into our Solvency II Reporting Service.  

• If you’re already a client, you benefit from our cleversoft Compliance Commitment: All relevant updates are included at no extra cost within your booked modules.  

• Not yet a client? Reach out to us to discover how our service keeps you compliant with less effort and full peace of mind.