EC publishes final Solvency II Delegated Regulation

Written by Adam Cadle

29/10/2025

The European Commission has today presented the delegated regulation for Solvency II, bringing the review process which has been ongoing since 2020, close to the finish line.

With the revision of Solvency II, the EC aims to further develop the existing supervisory regime to enhance both consumer protection and the financial stability of the insurance sector. The EC outlined today that it has improved the calculation method for long-term interest rates compared to its earlier draft. This correction enables a more reliable assessment of long-term liabilities and strengthens the system’s stability. This is particularly important for life insurers with long-term investment horizons.

Furthermore, the EC will not, for the time being, adopt additional technical standards under Solvency II regarding transition plans for sustainability risks.

“Today’s measures mark an important step of the Savings and Investment Union. They recognise the essential role institutional investors, such as banks and insurers, can play to support productive investments and boost our competitiveness,” Maria Luís Albuquerque, commissioner for financial services and the Savings and Investments Union, stated.

“Our delegated Solvency II regulation will further help insurers provide long-term financing to the real economy, including equity funding which is crucial to allow young and innovative businesses to grow and innovate. We are also clarifying how banks and insurers can co-invest with the public sector into EU strategic priorities, such as cleantech, biotech, AI, defence and security, in the context of legislative programmes. Our measures are about targeted enabling, not about unchecked risk-taking. By unleashing economic growth, they will also contribute to make our financial system more competitive and resilient.”

The Solvency II amending delegated act is subject to scrutiny by the European Parliament and the Council over a maximum period of three months. This period can be extended by three months at the request of the European Parliament or of the Council.

The amendments to the Solvency II Delegated Regulation will apply at the same time of the Directive (EU) 2025/2, namely from 30 January 2027.

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