Technical Specifications for Small and Non-Complex Insurance Undertakings

EIOPA Media

Published April 7th, 2026

Detected April 7th, 2026

Summary

EIOPA published technical specifications for identifying Small and Non-Complex Undertakings (SNCUs) and Groups (SNCGs) under the revised Solvency II Directive. The document provides quantitative criteria from Articles 29a and 213a and clarifies data points in Quantitative Reporting Templates to ensure consistent EU-wide implementation. Eligible entities will receive proportionate application of prudential requirements.

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What changed

EIOPA released technical specifications establishing criteria for identifying Small and Non-Complex Undertakings and Groups under the revised Solvency II Directive. The specifications detail quantitative thresholds calibrated using metrics outlined in Articles 29a and 213a, and clarify which Quantitative Reporting Template data points should be used for identification. Entities must meet these criteria consistently for two consecutive financial years to qualify.

Insurance and reinsurance undertakings should review the specifications to assess whether they qualify for the simplified proportionate framework. Supervisory authorities across Member States will apply these technical specifications to ensure convergent implementation from the amended Solvency II Directive's entry into application date. Eligible entities may benefit from reduced governance and quantitative requirements while maintaining appropriate risk management standards.

What to do next

Review EIOPA technical specifications to assess whether undertaking qualifies as SNCU or SNC group
Verify quantitative criteria are met for two consecutive financial years
Update data collection processes to align with specified QRT data points for identification

Source document (simplified)

The European Insurance and Occupational Pensions Authority (EIOPA) published today the technical specifications for small and non-complex undertakings (SNCUs) and groups (SNCGs) . This document supports undertakings and supervisory authorities in better identifying eligible undertakings who will benefit of the new simplified framework and in calculating the applicable risk indicators, considering some specific scenarios which might benefit from further clarifications.

The recent review of the Solvency II Directive introduces a new proportionality framework to improve the effective application of the proportionality principle in the prudential framework for European (re)insurers. For undertakings that can make use of them, these new rules will result in a more proportionate application of several requirements (including governance and quantitative requirements), taking into account the nature, scale and complexity of the undertakings’ risk.

A key feature of this framework is the new category of Small and Non-Complex Undertakings (SNCUs) and Groups (SNCGs). These entities are identified on the basis of a limited set of quantitative and qualitative criteria, which must be met consistently for two consecutive financial years. The quantitative criteria are outlined in Articles 29a and 213a of the Solvency II Directive and are calibrated using a variety of metrics.

The document published today furthermore provides clarifications to undertakings and supervisory authorities on which data points in the relevant Quantitative Reporting Templates (QRTs) should be used to identify SNC undertakings and groups. The overarching objective of this document is to ensure a convergent implementation of the new framework across Member States from the date of entry into application of the amended Solvency II Directive. By promoting consistent supervisory practices and a common understanding of the framework, this document contributes to ensuring high-quality, effective and consistent supervision across Europe.

EIOPA’s document marks an additional important step towards reducing the regulatory burden on undertakings in Europe’s insurance sector while maintaining a prudent approach to risk management. The introduction of tailored and proportionate elements to the regulation supports market diversity, competition and innovation while allowing supervisory authorities to allocate resources efficiently towards more complex firms with higher risk profiles.

Go to the Technical Specifications