Simplification

Simplification for a more competitive insurance sector

Europe needs a regulatory framework that protects consumers and supports competitiveness. Today, insurers face layers of overlapping rules and reporting obligations that absorb resources that could otherwise strengthen protection, improve services and support long term investment.

Simplification does not lower standards. It increases impact. A clearer, more proportionate framework keeps safeguards in place while removing unnecessary complexity.

Why insurers are calling to simplify smartly

Europe’s rules have grown dense over time. This reduces efficiency and ultimately affects consumers. As highlighted in the report:

Frees resources for progress

Insurers spend time and money producing hundreds of pages of repetitive reports. Cutting duplication would release capacity for faster digital claims, climate-resilient products and green investment.

Protects people without waste

A proportionate framework preserves the strongest safeguards while avoiding rules that deliver little benefit.

Keeps cover affordable

Constant rule changes increase compliance costs and make planning difficult. More stability allows insurers to invest in innovation, infrastructure and the transition.

What needs to change

The simplification agenda should focus on practical steps that reduce overlap, streamline frameworks and improve proportionality across the sector. The paper identifies six areas where this has immediate impact.

  1. Prudential, compliance and reporting
  2. Distribution and disclosures
  3. Sustainability
  4. Digital and innovation
  5. Data protection
  6. Supervision and governance

Prudential, compliance and reporting

Insurers face dense layers of reporting and supervisory requirements across Solvency II, the Insurance Recovery and Resolution Directive (IRRD), anti-money laundering and international tax rules. Many of these obligations overlap or repeat information that supervisors already receive. Simplifying the structure, focusing on material risks and applying proportionality consistently would release significant resources without reducing safeguards.

What simplification delivers

  • Removal of duplicative requirements
  • Lower reporting pressure at critical times of the year
  • More consistent proportionality for undertakings and groups
  • More predictable implementation timelines

Key steps

  • Delete sustainability risk plans under Solvency II
  • Abolish Q4 QRTs and streamline the SFCR
  • Extend proportionality beyond SNCUs
  • Introduce stop-the-clock tools under IRRD
  • Reduce unnecessary AML/KYC requirements
  • Extend safe-harbour regimes in international tax

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Contacts

Carolien Afslag

Senior policy advisor, prudential regulation
+32 2 894 30 16