EIOPA releases its Opinion on the scope of DORA in light of the review of the Solvency II framework

The European Insurance and Occupational Pensions Authority (EIOPA) published today its Opinion on the impact of the increased size thresholds regarding exclusion from scope of Solvency II as part of the Solvency II Review on insurance undertakings in the scope of the Digital Operational Resilience Act (DORA). In its Opinion EIOPA is calling on the European Commission to take the necessary actions to avoid disproportionate compliance efforts from small insurance undertakings in the transition period prior to the application of the revised Solvency II Directive. The amended Solvency II Directive raises the size thresholds for insurance and reinsurance undertakings, which may lead, subject to national transpositions, to more companies being excluded from the Solvency II framework. However, these undertakings are required to comply with the DORA from its date of entry into application on 17 January 2025, while at the date of application of the reviewed Solvency II framework might be exempted from DORA. EIOPA considers that this temporary application of DORA is disproportionate, as it would impose significant and unnecessary cost and administrative burden on these small entities during this period, without making a meaningful contribution to the primary objective of the DORA regulation. To address this issue, EIOPA invokes Article 9 a of the EIOPA Regulation and is calling on the European Commission to amend Union Law accordingly. The Opinion also outlines EIOPA's expectation...