Navigating Solvency II

The European Commission’s Solvency II review introduces a series of regulatory, reporting and capital related changes that will come into effect in January 2027.

As insurers move past year end reporting, now is the ideal time to assess the operational, actuarial and governance impacts of these updates. The Central Bank is also consulting on refinements to the Domestic Actuarial Regime (“DAR”).

In particular, with the Head of Actuarial Function ("HoAF") being a pre-approval controlled function ("PCF"), DAR has been prioritised for inclusion in the wider compatibility review being performed as part of the Central Bank’s implementation of the amendments to the Solvency II Directive.

Drawing on our actuarial, risk and regulatory specialists, we outline the key areas insurers should monitor, and how we can support your implementation planning.

Jean Rea

Partner

KPMG in Ireland

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Inside Insurance:
Navigating Solvency II Reform

Our podcast and video series explores the key developments arising from the Solvency II Review and what they mean for insurers operating in Ireland.

Across each episode, our actuarial, risk and regulatory specialists discuss the practical implications of the reforms and share insights to help organisations prepare for implementation ahead of January 2027.

How we can help

Our cross‑functional Solvency II team can support you across readiness assessment and implementation planning, including:

Gap analysis and prioritisation of required updates

Provide a comprehensive view of Solvency II regulatory changes across the three Pillars, including clear guidance on implications and areas of prioritisation for your firm
Modelling

Provide actuarial modelling support across Technical Provisions and SCR, including model updates, model validation, and best practice model risk management
Impact assessment and parallel run

Provide independent assessment of the impact of changes on solvency position and/or perform parallel runs using our internally developed standard formula SCR model
Proportionality measures

Provide end‑to‑end support on proportionality measures for SNCUs and non‑SNCUs, including interpretation of available measures and criteria, assessment of eligibility, and guidance through the application process (including the Central Bank pre‑application stage)
ORSA, LRMP, Sustainability risk and other risk management areas

Review and enhance ORSA methodologies and governance frameworks in response to regulatory changes; and review and uplift of governance frameworks and policies in particular in relation to sustainability risk and LRMPs.

Get in touch

If you would like to discuss how these changes may affect your organisation, please contact our Insurance and Actuarial specialists. We look forward to hearing from you.