Key data
| Regulation | Commission Implementing Regulation (EU) 2026/2041, of 11 September 2026 |
|---|---|
| Official reference | OJ:L_202602041 |
| Publication | 14 September 2026 |
| Entry into force | 11 September 2026 |
| Reference period | 30 June 2026 – 29 September 2026 (Q3 2026) |
| Base regulatory framework | Solvency II Directive (2009/138/CE) |
| Affected parties | Insurance and reinsurance companies operating in the EU under Solvency II |
| Category | European Regulation |
| Competent supervisors | DGSFP (Spain) and EIOPA (European level) |
Insurance and reinsurance companies operating under the Solvency II framework have a quarterly obligation that admits no delay: updating their valuation models with the technical information published by the European Commission. The Implementing Regulation (EU) 2026/2041, published on 14 September 2026 and effective from 11 September, sets the parameters applicable to the period between 30 June and 29 September 2026. Failing to do so on time is not a minor administrative error: it can alter the reported solvency ratio and trigger supervisory interventions.
This regulation is the standard instrument through which the European Commission conveys to insurance entities the technical data they must use to calculate their technical provisions and basic own funds in each quarterly closing. Its content is neither optional nor subject to interpretation: these are the figures that must enter the models.
What does this regulation establish?
Implementing Regulation 2026/2041 updates the quarterly technical parameters required by the Directive 2009/138/CE (Solvency II) for the calculation of technical provisions and basic own funds. The technical elements it publishes are as follows:
| Technical parameter | Description and use |
|---|---|
| Risk-free interest rate curves | Basis for discounting future cash flows of technical provisions. They vary by currency and maturity. |
| Volatility adjustment | Correction applied to interest rate curves to mitigate the impact of short-term market volatility on the balance sheet. |
| Additional actuarial parameters | Other technical data necessary to complete the calculation of provisions in accordance with Solvency II. |
These data are mandatory for reports with reference dates between 30 June 2026 and 29 September 2026. Any quarterly report submitted to the supervisor with a reference date within that range must use exclusively these parameters, not those from the previous quarter.
The regulation does not modify the calculation methodology or introduce structural changes to Solvency II: it updates the specific numerical values that feed the already existing models. This is relevant because it means that the burden of adaptation falls on actuarial and technology teams, not legal teams.
Economic and operational impact
The quarterly update of these parameters is not a neutral formality. Depending on the direction in which interest rate curves and volatility adjustments move relative to the previous quarter, the impact can be:
- Variation in the value of technical provisions: A rise in rates reduces the present value of liabilities, improving the solvency ratio. A decline deteriorates it.
- Change in basic own funds: As the value of liabilities changes, so does the surplus of assets over liabilities that constitutes basic own funds under Solvency II.
- Effect on the solvency ratio (SCR): A deterioration of the ratio may force the entity to retain capital that could otherwise be distributed as dividends or allocated to new investments.
- Additional capital requirements: If the solvency ratio falls below regulatory thresholds, DGSFP in Spain or EIOPA at European level may require corrective measures, including additional capital contributions.
The specific economic impact depends on each entity's portfolio (duration of liabilities, business mix, currencies) and the magnitude of the change in parameters relative to the previous quarter. Entities with long-duration life portfolios are particularly sensitive to movements in interest rate curves.
Who does it affect?
- Life insurance companies with long-duration liabilities (annuities, savings insurance, unit-linked with guarantees).
- Non-life insurance companies with long-tail claims reserves (liability, workers' compensation).
- Reinsurers established or operating in the EU under Solvency II.
- Insurance groups that consolidate under Solvency II and must apply the parameters at group level.
- Chief Financial Officers (CFOs) and actuarial directors responsible for quarterly supervisor reports.
- Risk management and capital teams that monitor the solvency ratio.
- Auditors and actuarial consultants who review or validate provisions calculations.
It does not affect entities excluded from the scope of Solvency II due to size (small entities applying the simplified national regime) or pension funds, which have their own regulatory framework.
Practical example
A Spanish life insurance company with a portfolio of annuities and a significant volume of technical provisions closes its quarterly report with reference date 30 June 2026. To calculate the present value of its future obligations to policyholders, it must discount cash flows using the risk-free interest rate curves published in Regulation 2026/2041, not those from the previous quarter (Q2 2026).
If the Q3 2026 curves reflect lower rates than Q2, the present value of obligations increases, technical provisions rise and basic own funds decrease. This can deteriorate the solvency ratio reported to DGSFP. If this deterioration brings the ratio below the regulatory threshold, the entity must report it to the supervisor and submit a recovery plan, with the resulting impact on dividend policy and market perception.
Conversely, if rates rise, the effect is the opposite: provisions fall, own funds improve and the solvency ratio strengthens, expanding the margin for capital distributions.
What should companies do now?
- Download the parameters from Regulation 2026/2041: Access the official text published in the EU Official Journal and extract the risk-free interest rate curves and volatility adjustments applicable to each currency relevant to the portfolio.
- Update actuarial valuation models: Incorporate the new parameters into technical provisions calculation systems before closing the quarterly report with reference date within the period 30 Jun – 29 Sep 2026.
- Recalculate the solvency ratio: Execute the SCR calculation and basic own funds with the new data and compare with the previous quarter to identify significant variations.
- Assess the impact on dividend policy: If the solvency ratio deteriorates, review whether it remains above regulatory thresholds and adjust capital distribution decisions accordingly.
- Prepare communication to the supervisor: Ensure that the quarterly report sent to DGSFP (in Spain) reflects the parameters of Regulation 2026/2041 and is ready within the timeframes established by the supervisor.
- Document the process: Maintain traceability of which parameters have been used and in which version of the models, to facilitate internal or external audit reviews.
Non-compliance with the obligation to use the correct parameters may result in additional capital requirements from DGSFP or EIOPA, in addition to potential observations in the supervisory review process (SREP).
Frequently asked questions
What specific parameters does Implementing Regulation 2026/2041 publish?
The regulation publishes the risk-free interest rate curves by currency and maturity, the volatility adjustments and other actuarial parameters necessary for the calculation of technical provisions and basic own funds in accordance with Solvency II. These are the numerical data that must mandatorily feed insurers' valuation models for the period 30 June – 29 September 2026.
When must these parameters be applied and what is the deadline?
The parameters are mandatory for all reports with reference dates between 30 June 2026 and 29 September 2026. The regulation entered into force on 11 September 2026 and was published on 14 September. Entities must incorporate them into their calculations before submitting the quarterly report to the supervisor.
What happens if an insurer does not update its models with these parameters?
Non-compliance may result in additional capital requirements from DGSFP in Spain or EIOPA at European level. Additionally, the quarterly report submitted to the supervisor with incorrect parameters may generate observations in the supervisory review process and require corrected information to be submitted, with the resulting operational and reputational cost.
How do these parameters affect dividend distribution?
The regulation's parameters determine the value of technical provisions and basic own funds, which in turn define the solvency ratio. If the ratio deteriorates due to the change in parameters, the entity may be forced to retain capital to maintain regulatory thresholds, reducing or eliminating the ability to distribute dividends. The specific impact depends on each entity's portfolio and the direction of the movement in rates.
Does this regulation also affect insurance groups and reinsurers?
Yes. The regulation applies to all insurance and reinsurance entities operating in the EU under the Solvency II framework (Directive 2009/138/CE), including groups that consolidate at European level. It does not apply to entities excluded from the scope of Solvency II due to size or to pension funds, which have their own regulatory framework.
Official source
Consult full regulation at official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202602041
