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European Union

EU Solvency II: scope, Pillars, capital, governance, reporting, groups, passporting, third-country equivalence and winding-up, including reforms under Directive (EU) 2025/2 (applicable from 2027)

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Practice notes
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This Practice Note sets out the principal features of the EU Solvency II regime (covering the Solvency II Directive 2009/138/EC, the Omnibus II Directive 2014/51/EU and related materials). It also reflects amendments to the Solvency II Directive made by Directive (EU) 2025/2 (the Solvency II amending Directive), which entered into force on 28 January 2025 and must be applied by Member States from 30 January 2027.

Solvency II—overview

Background and objectives of Solvency II

Solvency II is the framework governing the taking-up of business and supervision of insurance and reinsurance undertakings in the EU (together, ‘firms’). Directive 2009/138/EC replaced 14 earlier directives (collectively known as Solvency I) and establishes a maximum harmonising regime to deliver cross-border consistency. It is aligned with other financial services legislation, in particular the banking supervision framework (CRD IV/CRR—for more information, see Practice Note: EU CRD IV package—essentials). The regime applies to insurance groups as well as solo firms.

Solvency II introduced economic, risk-based solvency requirements across all EU Member States. These requirements are risk-sensitive and more sophisticated than the previous approach, enabling improved coverage of the real risks faced by firms...

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Luc Bigel
Me Luc Bigel

Qualified: Paris Bar (2010), Québec Bar (district Montréal) (2011)Luc Bigel is an expert of insurance, reinsurance, distribution & compliance laws. He advises (re)insurers and distributors in relationship to their queries on life and non-life insurance laws. He has developed a particular knowledge of cross-border operations and advice involving various EU States. He acts both as an advisor or litigator. Luc is the author of more than 60 articles on insurance law and the author of two books: the first one deals with outsourcing arrangements and the second one is about insurtechs. Luc lectures regulatory, (re)insurance and distribution laws at Sorbonne University. Luc has been highlighted and recognized as a leading practitioner by the Legal 500 EMEA (2020) and IFLR (2021) for insurance law....

Hamza Akli
Me Hamza Akli

Hamza has developed a deep expertise in the regulations applicable to insurance and reinsurance companies, more specifically in regulatory and all types of issues pertaining to the distribution of insurance and reinsurance products. Besides his day to day professional practice, Hamza has written more than 40 articles and two books related to insurance and reinsurance laws. Hamza lectures insurance laws at Sorbonne University as well as Banking laws at the Paris School Bar. Hamza has been recognized in the Best Lawyers ranking 2022 in the “Ones to Watch” category for his work in insurance law and has received several awards for the publication of his articles....

Web page updated on 21/05/2026

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