The Amending Directive contains far reaching changes on topics as varied as long-term equity investments, valuation of insurance liabilities, proportionality, and reporting, which reflects insurers’ valuable role in responding to the challenges of our times: green transition and Covid recovery.

However, the Amending Directive also contains significant changes to rules on group supervision, and, in that regard and others, reflects supervisory lessons learned since the implementation of Solvency II in 2016.

In this article, we outline the significant changes brought about by the Amending Directive to the Solvency II framework as it applies to insurance groups and discuss the resulting implications. We also examine the new supervisory powers introduced, alongside the implementation of explicit proportionality measures designed for small and non-complex groups.