Insurance Insights July 2026

KPMG updates

Summary of Consultation Paper 171 on the domestic actuarial regime

Following the publication of Consultation Paper 171 (CP171), KPMG has reviewed the Central Bank of Ireland’s proposed refinements to the Domestic Actuarial Regime (DAR) and related governance requirements under Solvency II.

The Summary of Consultation Paper 171 on the Domestic Actuarial Regime, highlights the proposals likely to be of greatest interest to insurers, including changes to actuarial reporting, governance expectations, peer review requirements and exemptions.

The article explores the practical implications of the proposed changes and provides additional insight for firms assessing the potential impact ahead of the consultation deadline of 20 October 2026.

Navigating Solvency II

With the revised Solvency II framework due to take effect in January 2027, insurers should now be assessing the regulatory, reporting, capital and governance implications of the reforms.

In our Navigating Solvency II webpage, KPMG's actuarial, risk and regulatory specialists outline the key areas organisations should monitor and highlight practical considerations across Pillars 1, 2 and 3, including proportionality, sustainability risk management, reporting requirements and governance expectations.

The insight also links to our Inside Insurance: Navigating Solvency II Reform podcast and video series, which explores the implications of the reforms for insurers operating in Ireland.

European Insurance and Occupational Pensions Authority Updates

EIOPA: Implementation of the budget for financial year 2024

The European Insurance and Occupational Pensions Authority (EIOPA) has published an opinion (PDF, 475KB) on the European Parliament’s (EP) discharge decision relating to the implementation of EIOPA’s 2024 budget. The opinion sets out EIOPA’s response to the EP’s observations and recommendations following the discharge process, outlines measures taken to address identified areas for improvement, and demonstrates how the EIOPA has acted on recommendations in accordance with its Financial Regulation.

EIOPA: Factsheet on European (re)insurers’ exposures to private credit and equity

EIOPA has published a factsheet (PDF, 5.4 MB) providing additional insight into European Economic Area (EEA) insurers’ exposures to private credit and private equity, highlighting the growing importance of private assets within the sector. The analysis shows that EEA (re)insurers held approximately €1.185 trillion in private assets at the end of 2025, representing around 11% of total assets, with private credit accounting for 5.0% and private equity 6.3%. The factsheet includes a breakdown of exposures by asset type and country of issuance, as well as analysis by line of business.

EIOPA: Solvency II: final guidelines and draft technical standards 

EIOPA has published eight sets of guidelines and technical standards as part of the Solvency II review, completing all mandates assigned to it under the revised framework ahead of its application from January 2027. The package includes new Guidelines on supervisory powers to address liquidity vulnerabilities, setting out how supervisors may intervene where deficiencies in insurers’ liquidity risk management are identified, including in exceptional cases the temporary suspension of policyholder redemption rights.

The EIOPA has also issued a new Regulatory Technical Standard (RTS) on the simplified calculation of the risk margin, reflecting the introduction of the new “lambda factor” designed to better capture the time dependency of risks and reduce the sensitivity of risk margins to interest rate movements. In addition, updates were made to existing guidance and reporting standards relating to the matching adjustment, technical provisions, ring-fenced funds, group solvency, reporting and disclosure, and supervisory disclosure templates to ensure alignment with the amended Solvency II framework. 

EIOPA: Guidelines and draft technical standards related to the IRRD

EIOPA has published press release announcing a package of seven instruments supporting the implementation of the Insurance Recovery and Resolution Directive (IRRD), comprising four guidelines and three draft regulatory technical standards (RTS).

• The final report (PDF, 419.29 KB) on the Guidelines on Scenarios establish a range of macroeconomic, financial and insurer-specific stress scenarios to assess the credibility and feasibility of insurers’ recovery plans.
• The final report (PDF, 421.63 KB) on the Guidelines on Indicators set out qualitative and quantitative indicators covering areas such as capital, liquidity, profitability, market conditions and operational events to support recovery planning.
• The final report (PDF, 338.15 KB) on the Guidelines on the Provision of Information clarify how exemptions to professional secrecy requirements may be applied when sharing confidential information in aggregated or anonymised form.
• The final report (PDF, 402.19 KB) on the Guidelines on Simplified Obligations outline the criteria supervisory and resolution authorities should consider when determining whether insurers may be subject to simplified recovery and resolution requirements.
• The final report (PDF, 650.47 KB) on draft RTS on the Independence of Valuers establish the conditions under which valuers can be considered independent when assessing an insurer’s assets and liabilities in a resolution context.
• The final report (PDF, 649.41 KB) on draft RTS on Contractual Recognition of Resolution Stay Powers introduce standardised contractual provisions to support the application of resolution stay powers to contracts governed by third-country law.
• The final report (PDF, 588.64 KB) on draft RTS on the Valuation of Liabilities from Derivatives set out methodologies and principles for valuing derivative liabilities during resolution.

EIOPA: Draft technical standards covering the valuation of re(insurers) in the context of resolution

EIOPA has published a press release announcing two consultations on draft regulatory technical standards (RTS) supporting the implementation of the Insurance Recovery and Resolution Directive (IRRD), which will apply from January 2027.

• The first consultation (PDF, 742.65 KB) on draft RTS sets out methodologies for valuing the assets and liabilities of insurers and insurance groups in a resolution context, as well as the calculation of additional loss buffers to be included in provisional valuations.
• The second consultation (PDF, 644.08 KB) on draft RTS establishes methodologies for post-resolution valuations, which are used to assess whether shareholders, policyholders, beneficiaries, claimants and other creditors would have received better treatment if the undertaking had entered normal insolvency proceedings rather than resolution.

EIOPA: Consultation on proposed changes to insurance corporate disclosures under the EU Taxonomy framework for environmentally sustainable activities

On 1 July, EIOPA launched a consultation on proposed changes to EU Taxonomy disclosures for insurers, aimed at improving transparency, simplifying reporting requirements, and enhancing alignment with other sustainable finance frameworks. The consultation is open until 12 August 2026.

EIOPA: Follow-up report on the peer review on product oversight and governance

EIOPA’s follow-up report (PDF, 1.46 MB) finds that National Competent Authorities (NCAs) have made substantial progress in strengthening supervision of Product Oversight and Governance (POG) requirements, with approaches becoming more risk-based, operational and focused on product outcomes. Enhanced supervisory frameworks, including thematic reviews, product assessments and targeted inspections, have improved the identification of conduct risks and consumer harm, leading in some cases to remediation measures such as product redesigns, cost reductions and product withdrawals.