Solvency II

Insurance company regulation based on the Solvency II Directive¹

Current regulation of the activities of life, non-life and reinsurance undertakings (insurance companies) is based, in principle, on the Solvency II Directive. Solvency II is mainly a maximum harmonisation directive. The Directive provides for the solvency, governance, reporting and supervision of insurance companies. The Solvency II Directive aims to promote the proper functioning of the EU internal market and to protect policy holders, insured persons and beneficiaries. The Solvency II Directive was transposed into national law from the beginning of 2016. In Finland, the provisions of the Solvency II Directive are mainly incorporated in the Insurance Companies Act (521/2008).

In addition to the Insurance Companies Act, the activities of insurance companies are governed by Commission Delegated Regulation (EU) 2015/35², adopted pursuant to the Solvency II Directive. The Regulation is directly applicable law in the EU Member States. In addition, the Solvency II Directive and the Delegated Regulation are complemented by the regulatory and implementing technical standards prepared by the European Insurance and Occupational Pensions Authority (EIOPA) and adopted by the Commission, as well as by EIOPA guidelines on the application of the Solvency II Directive.

The Solvency II (Amendment) Directive³ entered into force on 29 January 2025. The Directive must be transposed into national law by 29 January 2027. The amendment of the Solvency II Directive also requires a review and amendment of lower-level regulations.

1) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).

2) Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).

3) Directive (EU) 2025/2 of the European Parliament and of the Council of 27 November 2024 amending Directive 2009/138/EC as regards proportionality, quality of supervision, reporting, long-term guarantee measures, macro-prudential tools, sustainability risks and group and cross-border supervision, and amending Directives 2002/87/EC and 2013/34/EU.

Prudential regulation and supervision under Solvency II Commission Implementing Regulation EU 2015/2451

A. Acts, decrees, administrative regulations and general guidelines related to the regulation of the insurance sector
Acts
Decrees
FIN-FSA’s regulations and guidelines

B. The FIN-FSA’s general principles and methods guiding the inspection process (to be updated later)

C. Statistical data under Solvency II

D. The manner of exercise of the options provided for in the Solvency II Directive (in Finnish)

E. Aims of insurance supervision and supervisory tasks and activities (to be updated later)