The Solvency II Review: An Evolution, Not A Revolution

Almost ten years after its entry into force, Solvency II is undergoing a review to ensure that it remains fit for purpose in a changing economic and regulatory landscape. Since 2016, insurers have operated in an environment marked by prolonged low interest rates, increased market volatility, changing risk profiles, and increasing expectations around sustainability and long term investment.

As Petra Hielkema, Chair of EIOPA, noted in a letter dated 29 September 2025 addressed to European Commission:

“Our experience has shown that Solvency II proved itself as a solid foundation, withstanding a number of market turbulences, such as caused by COVID-19, and more recent high inflation.”

Indeed, the Solvency II review is about ensuring that the framework continues to function effectively under today's conditions. To understand the scope of these changes, it is helpful to look back at the shift from Solvency I to Solvency II.