Regulatory Alerts2026-07-10
Added · Updated
Instruction No. 2026-I-12 on the implementation of new proportionality measures from the revision of Directive 2009/138/EC on insurance and reinsurance activities (Solvency II)
The Autorité de contrôle prudentiel et de résolution (ACPR) issues Instruction No. 2026-I-12 to implement new proportionality measures under the revised Solvency II Directive. It defines criteria for insurance and reinsurance undertakings and groups to be classified as "small and non-complex" (SNCUs/SNCGs), based on their technical provisions and gross written premiums over two consecutive years, as detailed in Articles R. 357-1 and R. 356-62 of the Insurance Code. Eligible entities must notify the ACPR, which has two months to object, and can then apply one or more of eight specified proportionality measures, such as reviewing governance policies every five years, conducting Own Risk and Solvency Assessments biennially, or using a simplified Solvency and Financial Condition Report. Loss of SNCU/SNCG status occurs if criteria are not met for two consecutive years or if exclusion criteria are met, leading to the cessation of all proportionality measures.