EIOPA Plans 25% Reduction in Solvency II Guidelines

EIOPA has launched a consultation proposing to shorten 13 sets of Solvency II Guidelines by around 25% as part of the broader Solvency II review and simplification agenda.

The objective is clear:
reduce complexity, remove duplication, and make the framework easier for insurers and supervisors to apply consistently across the EU.

The proposed changes focus mainly on streamlining existing requirements rather than introducing new prudential obligations.

Key proposed changes include:
• removing repetitive guidance already covered directly in Solvency II legislation
• simplifying supervisory reporting expectations
• reducing overlap between Pillar II governance requirements and existing Level 1 / Level 2 rules
• shortening documentation and procedural requirements
• clarifying proportionality expectations for smaller and less complex insurers
• simplifying parts of ORSA, governance, and reporting guidance
• improving readability and supervisory consistency across Member States

EIOPA says the goal is not to weaken prudential standards, but to make the framework more efficient and less operationally burdensome for firms.

The consultation is another signal of the broader European regulatory trend:
maintaining prudential resilience while reducing unnecessary regulatory complexity.

For insurers, the practical impact could include:
• lower compliance burden
• reduced administrative duplication
• more proportionate governance expectations
• simpler supervisory engagement processes

At the same time, the core prudential expectations around capital adequacy, governance, risk management, and policyholder protection remain unchanged.

Consultation feedback is open until 15 July 2026.