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Consultation on Proportional Reinsurance Treaty Features Jeopardising Risk Transfer Balance

EIOPA launched a consultation on proportional reinsurance treaty features that may jeopardise the balance between solvency capital requirement (SCR) relief and effective risk transfer. The draft Annex to EIOPA's 2021 Opinion on risk mitigation techniques proposes that undertakings with material reinsurance treaties assess whether SCR relief is commensurate with actual risk transfer. The consultation also addresses reinsurance commission treatment for premium risk calculations. Comments are due by 17 July 2026.

EIOPA Consults on Shortening 13 Sets of Solvency II Guidelines

EIOPA launched a public consultation on 15 April 2026 seeking feedback on proposals to shorten 13 sets of Solvency II Guidelines. The proposed simplifications would reduce 294 individual guidelines, following EIOPA's commitment to reduce guideline length by at least 25% as part of regulatory simplification efforts. This is the second phase of streamlining, following previous consolidation of nine sets of guidelines. The consultation covers Pillar I topics and Pillar II areas including system of governance and ORSA.

AI GenAI Insurance Survey: 65% of Insurers Using GenAI, Back-Office Focus, Data Ethics

EIOPA released findings from its first dedicated survey on Generative AI use across the European Economic Area insurance sector. The survey shows that 65% of insurance undertakings are already actively using GenAI systems, with most use cases still at proof-of-concept stage focused on back-office applications. Insurers are prioritizing 'assisted AI systems' with human oversight rather than fully autonomous solutions. The findings indicate a controlled, measured approach to AI adoption across the sector.

Council Extends EIOPA Chair Petra Hielkema Until 2029

The Council of the European Union has extended Petra Hielkema's mandate as Chairperson of the European Insurance and Occupational Pensions Authority (EIOPA) for a second five-year term beginning 1 September 2026. The decision follows a positive assessment by EIOPA's Board of Supervisors of her conduct and performance during her first term, as well as the Board's recommendation for prolongation.

EIOPA Statement on Role of Pension Funds and Insurers in Capital Markets Union

EIOPA delivered testimony to the European Parliament's ECON Committee urging strengthening of EU pensions regulation. The authority called for prioritizing the IORP II Directive and PEPP Regulation reviews to address pension and protection gaps, enhance retail investment participation, and support the Savings and Investments Union objectives.

EIOPA and ESM Propose Natural Catastrophe Insurance Pool with Loan-Based Backstop

EIOPA and ESM published a joint discussion paper proposing a European natural catastrophe insurance pool and loan-based backstop to address Europe's significant protection gap, where approximately 75% of economic losses from natural catastrophes have historically gone uninsured. The proposed mechanism would diversify catastrophe risk across EU member states and provide fiscal stability for extreme weather events. The paper seeks feedback on a two-part structure combining risk-based premium financing with an additional loan facility for tail events exceeding the pool's capacity.

Technical Specifications for Small and Non-Complex Insurance Undertakings

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.

Wildfire Mitigation Study Shows 35% AAL Reduction Through Resilient Rebuilding

NAIC's Catastrophe Risk Management Center of Excellence released research conducted with the California Department of Insurance demonstrating that rebuilding wildfire-impacted communities to IBHS Wildfire Prepared Home Standards can reduce projected wildfire average annual losses by up to 35 percent. The study found that rebuilding to the highest IBHS standard adds approximately 3 percent in construction costs.

EIOPA Chair urges stronger funded pensions for Europe

EIOPA Chair Petra Hielkema delivered a keynote speech at the European Financial Review dinner in Brussels, outlining the European Commission's Savings and Investments Union (SIU) initiative. The speech emphasized the need to remove Single Market frictions and mobilize European savings through stronger funded pension systems to support investment and economic growth.

Annual Report on Costs and Past Performance of Retail Investment Products

EIOPA published its annual costs and past performance report covering 2020-2024, analyzing nearly 6,000 insurance-based investment products from 175 undertakings representing over 60% of the EEA market and 1,677 pension products. Unit-linked products achieved 7.5% average net returns for low-to-medium risk products in 2024 while profit participation products returned 2.3%, with costs decreasing by 8 basis points. The report identifies significant pricing variations across Member States, suggesting potential need for EU-level work to ensure consistent consumer outcomes.