Solvency II is a comprehensive regulatory framework designed to govern the insurance and reinsurance industries across the European Economic Area (EEA). Introduced in 2016, it seeks to ensure that insurers remain financially sound and are capable of meeting their long-term obligations to policyholders. While the framework is developed and maintained at the European level, its enforcement is shared between a central European authority and individual national bodies.
At the heart of Solvency II’s development and coordination is the European Insurance and Occupational Pensions Authority, or EIOPA. EIOPA is one of the three European Supervisory Authorities under the European System of Financial Supervision. It is tasked with promoting a consistent regulatory approach across the EEA. EIOPA provides technical advice to the European Commission, develops binding technical standards, issues guidelines and recommendations, and monitors the application of EU law by national authorities. Although EIOPA does not directly regulate individual insurance companies, it plays a critical role in shaping the regulatory landscape and supporting national supervisors.
EIOPA’s primary enforcement role lies in oversight and harmonization. It conducts peer reviews of national supervisory authorities to assess their compliance with EU rules and their supervisory practices. EIOPA also facilitates collaboration and information-sharing among national regulators and can mediate in disputes between them. In exceptional cases, such as when a national authority fails to comply with EU law, EIOPA can issue recommendations and, in cooperation with the European Commission, take corrective measures.
Despite EIOPA’s central role, the day-to-day enforcement of Solvency II lies with the National Competent Authorities, or NCAs, in each EEA member state. These NCAs are responsible for licensing insurance undertakings, supervising their financial health, overseeing risk management practices, reviewing Solvency Capital Requirements (SCRs), and ensuring compliance with reporting and disclosure obligations. The NCAs perform inspections, evaluate ORSA (Own Risk and Solvency Assessment) reports, and intervene where insurers fall below regulatory thresholds.
Local NCAs
Each EEA country designates its own NCA to carry out these responsibilities. Below is a list of the NCAs for each participating country:
Austria – Financial Market Authority (FMA)
Belgium – National Bank of Belgium (NBB)
Bulgaria – Financial Supervision Commission (FSC)
Croatia – Croatian Financial Services Supervisory Agency (HANFA)
Cyprus – Superintendent of Insurance, Ministry of Finance
Czech Republic – Czech National Bank (CNB)
Denmark – Danish Financial Supervisory Authority (DFSA or Finanstilsynet)
Estonia – Estonian Financial Supervision Authority (EFSA)
Finland – Finnish Financial Supervisory Authority (FIN-FSA)
France – Autorité de Contrôle Prudentiel et de Résolution (ACPR)
Germany – Federal Financial Supervisory Authority (BaFin)
Greece – Bank of Greece
Hungary – Central Bank of Hungary (MNB)
Iceland – Financial Supervisory Authority of Iceland (FME)
Ireland – Central Bank of Ireland
Italy – Institute for the Supervision of Insurance (IVASS)
Latvia – Financial and Capital Market Commission (FCMC)
Liechtenstein – Financial Market Authority Liechtenstein (FMA)
Lithuania – Bank of Lithuania
Luxembourg – Commissariat aux Assurances (CAA)
Malta – Malta Financial Services Authority (MFSA)
Netherlands – De Nederlandsche Bank (DNB)
Norway – Financial Supervisory Authority of Norway (Finanstilsynet)
Poland – Polish Financial Supervision Authority (KNF)
Portugal – Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF)
Romania – Financial Supervisory Authority (ASF)
Slovakia – National Bank of Slovakia (NBS)
Slovenia – Insurance Supervision Agency (AZN)
Spain – Directorate-General for Insurance and Pension Funds (DGSFP)
Sweden – Swedish Financial Supervisory Authority (Finansinspektionen)
Each of these authorities carries out supervisory functions in accordance with Solvency II’s three pillars. They examine quantitative requirements under Pillar I, evaluate risk governance under Pillar II, and ensure proper disclosure under Pillar III. While national differences in implementation exist, EIOPA works to align supervisory approaches, reduce regulatory arbitrage, and protect policyholders across borders.
Furthermore, insurance firms with cross-border operations often fall under group supervision, where the NCA of the parent company works in coordination with the NCAs of other jurisdictions. In these cases, EIOPA may facilitate supervisory colleges, which bring together multiple regulators to oversee large insurance groups collectively.
Conclusion
In conclusion, the enforcement of Solvency II reflects a hybrid system: EIOPA provides overarching oversight and consistency at the European level, while national regulators ensure compliance on the ground. This balance allows for a harmonized yet flexible regulatory regime that addresses the unique characteristics of each national market while maintaining stability across the broader European insurance sector.