Regulation

Directive (EU) 2025/2 and Delegated Regulation (EU) 2026/269

What changes

• The solvency and financial condition report (SFCR) is split in two: a part for policyholders and a more detailed part for market professionals, with a new section on sustainability.
• The SFCR balance sheet must be audited, except at small and non-complex insurers and captives.
• Small and non-complex insurers get lighter reporting, disclosure, governance and ORSA rules once their supervisor accepts the classification.
• Longer deadlines from the reports for 2027: an insurer's own SFCR is due 18 weeks after the year end instead of 14, a group's 24 weeks instead of 20.
• Capital rules change: the risk margin is calculated with a cost-of-capital rate of 4.75% instead of 6%, which on its own cuts it by about 21% (the figure quoted for this step in the Debevoise note below), and the delegated regulation adds a factor that shrinks projected risks over time, capped at half, which cuts it further; long-term equity holdings can carry a 22% charge instead of 39% where an insurer can avoid forced sales for five years under stress.
• EIOPA has proposed cutting the reporting templates by about a quarter for most insurers (draft sent to the Commission on 30 March 2026; its adoption is not yet confirmed).
• Transposition is tight in places: Poland's draft law for the review (UC159) was listed on 7 August 2026 for government approval in the fourth quarter of 2026, against a deadline of 29 January 2027.

For insurers

Solvency ratios will rise from 2027 partly because of the new calculation, not because insurers become stronger. Smaller insurers in the region that qualify as small and non-complex will publish less.

For the figures on Polisa. The SFCRs for 2026, published in spring 2027, are still in the current form, so the next update of this site works as before. The SFCRs for 2027 (May–June 2028) are the first in the new form: Polisa will link the old and new sections and mark the 2027 rise in SCR ratios as technical.

On Polisa: Capital buffers over five years · The thinnest capital buffers

EU Climate Resilience Framework (COM(2026) 720) and proposed European Climate Resilience Law (COM(2026) 730); EIOPA and ESM proposal

What changes

• Storm Boris in September 2024 caused an estimated €1.65bn of insured flood losses, €775m of it in Czechia and €285m in Poland (Aon).
• Only 17% of Europeans asked in the Eurobarometer have property cover against natural catastrophes, according to EIOPA.
• EIOPA and the European Stability Mechanism proposed a Europe-wide pool financed by risk-based premiums, with a loan backstop for extreme events (9 April 2026).
• The Commission announced a Climate Insurance Alliance on 16 September 2026 and presented its Climate Resilience Framework on 27 October 2026: a communication and a proposed European Climate Resilience Law, which sets a common warming trajectory for risk assessments and replaces national planning duties with one strategic plan per member state.
• For insurance the framework relies on the Climate Insurance Alliance (insurers, reinsurers, intermediaries, investors, risk modellers, EIOPA and public authorities). It is to propose measures to raise insurance uptake, reward risk prevention and make sure there is enough capacity, including reinsurance and catastrophe bonds, with the first set due by the end of 2027.
• The framework proposes no EU insurance or reinsurance scheme or fund, and no binding insurance measures. According to the Commission, about a quarter of natural catastrophe losses in the EU have historically been insured.
• Romania's mandatory home insurance (PAD) covered about 24% of homes in 2024; about 2.39m policies were in force in February 2026.
• Croatia took a €100m World Bank loan with a catastrophe drawdown option that includes incentives to insure; about 20–25% of homes are insured.
• In Czechia a flood pool has been debated since the 2024 floods; no decision has been taken.

For insurers

Property claims are rising meanwhile: Czech fire claims rose 83% in 2025, and Slovak property claims more than doubled in the first half of 2026.

On Polisa: Slovenia 2023: storms and floods · Two VIG insurers and one large property loss

National tariff rules and licences

What changes

• Romania: motor liability prices were frozen from April 2023, after Euroins failed, until the cap ended on 1 July 2025. Renewals then rose about 5.5%, and the supervisor ASF's reference tariffs of May 2026, which are not binding, were on average about 12% higher for private cars than in November 2025. In the second quarter of 2026 the average premium for a car was RON 2,093, about 21% more than a year earlier, and the average claim rose about 18% in the first half (ASF figures).
• Poland: motor liability earned a technical result of PLN 62m on PLN 9.7bn of premium in the first half of 2026, as the average claim rose 4.2% while the risk premium stayed flat; the supervisor KNF told insurers to bring prices in line with costs.
• Hungary: compulsory motor prices are still a little below last year's. The central bank's KGFB index put the average annual premium for private cars at HUF 55,521 in the second quarter of 2026, 2.7% lower than a year earlier and flat on the quarter, while claims costs rose 10.8%; the MNB says further price competition is no longer justified. The price-comparison portal Insura.hu measured new-contract prices about 12% lower.
• Bulgaria: Insurance Code changes adopted on 15 October 2026 (State Gazette 97, 23 October 2026) let the Guarantee Fund pay, through its Security Fund, the motor claims of an insurer whose licence was revoked, so the motor insurers' bureau no longer advances them, and let the supervisor FSC top up the Fund on its own initiative. Since 23 October insurers may not refuse motor liability cover for 30 days or more for motorcycles, campers, vehicles with temporary or transit registration, slow vehicles and self-propelled machinery.
• Bulgaria: with DallBogg out of the statistics, motor liability premium in early 2026 was 23.7% below a year earlier, a figure not comparable with 2025. The supervisor withdrew the licence of DallBogg Life and Health on 9 June 2026; DallBogg had been barred from new business outside Bulgaria, including Romanian motor policies, for three months from 1 July 2025 and without end from 1 October 2025.
• Moldova: a draft motor liability law would move to freely set prices; its provisions would take effect two years after it is adopted.

For insurers

Polisa's insurance price page shows how far motor insurance prices have moved in each country, from Eurostat's price indices.

On Polisa: Romanian motor prices after the cap · Motor claims outpace premiums · Insurance prices

Regulation (EU) 2024/1689, amended by Regulation (EU) 2026/1744

What changes

• AI used for risk assessment and pricing of individuals in life and health insurance counts as high-risk; motor and property pricing do not.
• The digital omnibus on AI (Official Journal 24 July 2026, in force 27 July) moved the deadline for these rules from 2 August 2026 to 2 December 2027.
• EIOPA asked the Commission in April and July 2026 to leave human-supervised generalised linear models (GLMs) out of the high-risk list; the Commission asked for more context.
• The Commission's guidelines on which AI systems count as high-risk came out as a draft on 19 May 2026 and were still a draft at the end of October 2026.

For insurers

Whether classic pricing models are in scope decides most of the cost for life and health insurers.

Amendments to the Insurance Distribution Directive (IDD) and PRIIPs

What changes

• Agreed provisionally on 18 December 2025: value-for-money product governance, standard cost terms and an annual statement for investors.
• Commissions are not banned but get stricter safeguards; intermediaries become responsible for their marketing, including on social media.
• EIOPA's third report on the Insurance Distribution Directive (30 March 2026) found continuing concerns about commissions in life and credit protection insurance; its consultation on the supervision of these sales is open until 4 January 2027.
• After the Parliament vote the Council must also adopt the texts. Member states then have two years to transpose them; the rules apply 30 months after publication in the Official Journal, the PRIIPs changes after 18 months.
• The Commission's work programme for 2027 (4 November 2026) lists the Financial Data Access proposal (FiDA), which would have opened insurance customers' data to third parties, for withdrawal: no trilogue since June 2025 and no prospect of support in the Council. The pensions package (IORP and IDD amendments, PEPP) and the PRIIPs and SFDR information package stay priority files; the programme brings no new insurance initiative.

For insurers

Most relevant to unit-linked and bancassurance products.

On Polisa: Life insurers earn the highest returns

Directive (EU) 2025/1 (IRRD)

What changes

• Insurers covering at least 60% of each national life and non-life market must keep recovery plans; resolution plans must cover at least 40%.
• Small and non-complex insurers are exempt.
• New national resolution authorities get powers such as transferring a portfolio to a buyer, stopping new business and bail-in.
• EIOPA advised minimum common standards for insurance guarantee schemes on 1 September 2026; the Commission is to report in early 2027.

For insurers

In the region's concentrated markets a handful of insurers per country, mostly group subsidiaries, will be in scope. The failures of City and Euroins in Romania and of DallBogg in Bulgaria are the cases these rules are meant for.

On Polisa: Who took Romania's market after City and Euroins failed · Deals and events

Regulation (EU) 2022/2554

What changes

• Insurers report major IT incidents and manage their critical IT providers under one EU framework; the first critical providers were designated on 18 November 2025.
• The first report on major incidents (3 June 2026) counted 3,383 in 2025 across the financial sector, about a third with cross-border impact; only 10% were cyber attacks, most were system failures.

For insurers

Subsidiaries outside the EU are pulled in through their groups' IT policies.

National insurance laws

What changes

• Serbia: the central bank put a draft insurance law based on Solvency II and the Insurance Distribution Directive to consultation in May–June 2026; adoption was planned for the fourth quarter of 2026, and the law would apply from 2028, some parts from September 2027. Insurers would publish an SFCR; small ones, with up to about €5.4m of premium, would stay outside the full regime.
• Montenegro: parliament adopted changes to the insurance law in December 2025 that align it with Solvency II and the Insurance Distribution Directive; they apply from the day Montenegro joins the EU.
• Bosnia and Herzegovina: the Federation's insurance supervisor presented a plan for a gradual move to Solvency II on 19 May 2026, backed by the Federal Ministry of Finance, without dates.
• Moldova: a draft law would bring in Solvency II, including the 2025 amendments, with reorganisation measures for insurers in difficulty, from 1 January 2029; it was put to public consultation in 2026.

For insurers

Until then these markets publish a local solvency margin, which Polisa shows apart from the Solvency II ratio.

On Polisa: How the figures are built