Solvency II’s rewrite is now fully specified. On 15 July EIOPA published eight sets of guidelines and draft technical standards, completing every legal instrument it was mandated to deliver under the review. The amended framework applies from 30 January 2027. Three changes move real numbers: a new exponential, time-dependent “lambda factor” in the risk margin; new Guidelines on the form, activation and extent of supervisory liquidity powers, including temporary suspension of policyholders’ redemption rights in exceptional circumstances; and matching-adjustment portfolios may assume full diversification with the rest of the undertaking where the best estimate does not form a ring-fenced fund.
In the same month, regulatory data failed in both directions. The PRA fined HDI Global SE £4,165,000 for inaccurate reporting of FSCS liabilities and fee tariff data. And a regulator’s own feed went down: since 18 June the NAIC has suspended assigning FE/PLR designations in AVS+, with Q2 filings due 15 August resting on a rating snapshot frozen at 17 June. We re-read the NAIC incident page before publishing — still suspended, its latest update still dated 8 July. Same control surface, opposite ends.
Proportionality was calibrated twice in July: a bespoke UK captive regime — Captive Capital Requirement set at the higher of 10% of net insurance liabilities or 10% of net premiums, minimum £100,000, met by paid-in capital only — and a codified friendly-society transfer process under Part VIII of the Friendly Societies Act 1992.
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