On 16 July 2026, the European Commission adopted a Delegated Regulation specifying factors for identifying insurance and reinsurance undertakings under dominant or significant influence and those managed on a unified basis, as well as criteria for determining when cross-border activities are relevant to a host Member State's market. The regulation, adopted under Directive 2009/138/EC (Solvency II), provides supervisory authorities with a harmonised framework to assess de facto groups and significant cross-border operations using flexible qualitative and quantitative criteria without fixed thresholds.
The regulation sets out that supervisory authorities must first assess contractual rights, including capital or voting rights, arrangements with vote holders, and membership rights for mutuals, to determine control or the ability to influence decisions. Where contractual rights are insufficient, authorities may consider additional qualitative elements such as influence over nominations and appointments, significant transactions, financial or solvency changes, shared board members, related parties, and current or former employees. The concept of "strong reliance" is defined to include financial transactions (equity, loans, guarantees, reinsurance) and non-financial operations (outsourcing, shared functions, brand, pricing). Coordination of financial or investment decisions is deemed to exist when at least two of three elements are present: joint decision-making bodies, similar investment strategies or risk exposures, and coordinated supervisory representation. Coordinated strategies are assessed via contractual rights or, if insufficient, through similar business strategies, risk management, outsourcing, location, or supervisory representation.
For cross-border relevance, host authorities must consider the concentration of activities based on market share measured by gross written premiums, as well as the material impact on policyholders or financial stability, including substitutability and potential consumer detriment. The regulation aims to close gaps in group supervision by capturing de facto control and unified management, and to ensure that host Member States can properly oversee cross-border activities that significantly affect their markets.
The Delegated Regulation will apply to all EU insurance and reinsurance undertakings. It provides a common methodology for national competent authorities, reducing fragmentation and legal uncertainty. The regulation is expected to have a moderate impact on insurance groups with complex structures or significant cross-border business, as they may face additional supervisory scrutiny. For host Member State authorities, the criteria offer a clearer basis for intervention. The regulation does not introduce new numerical thresholds but relies on qualitative assessments, which may lead to divergent interpretations in practice. The European Parliament and Council have the right to object within three months of notification. No prior coverage of this file exists in the last 180 days.