Waiting for the European Single Access Point to see some SII review improvements?

Directive 2023/2864 amended in 2023 Directive 2009/138 (the SII directive or SII) by inserting a new Article 304b into SII. That article was not amended by the SII Review Directive (Directive 2025/2). As a result, according to Article 304b, the following information will be accessible on the European single access point (ESAP) as of 10 January 2030.

• Any information referred to in Article 51(1) of Directive 2009/138;
• Any information referred to in Article 256(1) of Directive 2009/138;
• The information referred to in Article 271(1) of Directive 2009/138;
• The information referred to in Article 280(1) of Directive 2009/138.

However, although the SII Review Directive did not change Article 304b, several other amendments will have an impact on the information disclosed which in due time will be submitted to the national ESAP collection point, and ultimately to the ESAP.

Changes in function of the target audience

Whereas Articles 271(1) and 280(1) SII have not been amended by Directive 2025/2, there have been changes to the Article 51(1) SII and to Article 256(1) SII concerning the way of reporting the (solo) Solvency and Financial Condition Report (SFCR) and the group SFCR. As of 30 January 2027, the SFCR will be split up in two clearly identifiable parts in function of the target audience:  a slim part with information targeted at policyholders and beneficiaries (hereafter Part I) as well as a more complete and insightful part with information targeted at market professionals (hereafter Part II). This means that the 2027 SFCRs, available as of Q2 2028, will no longer be one document but two distinct documents, both publicly available and disclosed jointly as far as solo (re)insurance undertakings are concerned. Regarding the group SFCR, participating insurance and reinsurance undertakings, insurance holding companies and mixed financial holding companies, must submit the group SFCR, which only contains Part II.

Changes in content

 In case the undertaking (or mutatis mutandis the group) discloses the sustainability reports including transition plans according to Article 19a or 29a of Directive 2013/34/EU (CSRD), if any, a statement that they do so has to be included in both parts of the SFCR. Further, part II is required to include e.g., the elements of the SII sustainability financial risk plan, with its relevant quantifiable targets, processes and actions, the information whether the (re)insurance) undertaking (or mutatis mutandis the group) has any material exposure to climate change risks, and information of the risk sensitivity in case the (re)insurer is relevant for financial stability.

Changes in frequency

The SII Review Directive inserted a new category of small and non-complex insurance undertakings (SNCU) (including captives) and small and non-complex insurance groups (SNCG). The proportionality measures applicable to SNCU as defined in point (43) of Article 13 SII refer to a new paragraph 6 of Article 51 SII. This measure allows SNCUs to disclose yearly only the quantitative data of the SFCR in the part targeted at market professionals with a full SFCR targeted at other market professionals every 3 years. By way of derogation, reinsurance undertakings may choose not to disclose at all part I (as its information as anyhow included in part II).

Timing

The changes inserted by the SII Review Directive have entered into force end January 2025 but their application date has been set at 30 January 2027, with the first ‘new style’ SFCRs becoming publicly available at the earliest in Q2 2028 (within 18 weeks of the end of the undertaking’s financial year). However, ESAP will only contain all SFCRs after 10 January 2030: as of that date, any SFCR made public is also to be submitted to the national ESAP collection bodies. So, the first SFCRs to be included in the ESAP will be the two parts of the 2029 solo SFCR, and Part II of the group SFCR in Q2 2030.

Can’t wait… as until 2030 finding these improved SFCRs implies going painstakingly (with exception of the repository on the website of the Central Bank of Ireland) to each of the more than 2000 (re)insurers’ websites.

Lieve Lowet