Europe needs a regulatory framework that protects consumers and supports competitiveness. Today, insurers face layers of overlapping rules and reporting obligations that absorb resources that could otherwise strengthen protection, improve services and support long term investment.
Simplification does not lower standards. It increases impact. A clearer, more proportionate framework keeps safeguards in place while removing unnecessary complexity.
Why insurers are calling to simplify smartly
Europe’s rules have grown dense over time. This reduces efficiency and ultimately affects consumers. As highlighted in the report:
Frees resources for progress
Insurers spend time and money producing hundreds of pages of repetitive reports. Cutting duplication would release capacity for faster digital claims, climate-resilient products and green investment.
Protects people without waste
A proportionate framework preserves the strongest safeguards while avoiding rules that deliver little benefit.
Keeps cover affordable
Constant rule changes increase compliance costs and make planning difficult. More stability allows insurers to invest in innovation, infrastructure and the transition.
What needs to change
The simplification agenda should focus on practical steps that reduce overlap, streamline frameworks and improve proportionality across the sector. The paper identifies six areas where this has immediate impact.
1. Prudential, compliance and reporting
Insurers face dense layers of reporting and supervisory requirements across Solvency II, the Insurance Recovery and Resolution Directive (IRRD), anti-money laundering (AML) and international tax rules. Many of these obligations overlap or repeat information that supervisors already receive. Simplifying the structure, focusing on material risks and applying proportionality consistently would release significant resources without reducing safeguards.
What simplification delivers
Key steps
(short public section + quantitative annex)
ensure consistent application at group level (allow use of historical data or exclusion of exempted SNCUs)
sufficient time to assess the efficiency of GloBE rules and design a permanent safe-harbour
2. Distribution and disclosures
Consumers face long, complex purchase journeys, often driven by overlapping disclosures and tests. The Retail Investment Strategy (RIS) debate provides a chance to simplify, reduce duplication and improve the clarity of information provided.
What simplification delivers
Key steps
process (e.g., do not add new questions to the suitability and appropriateness assessments)
3. Sustainability
The sustainability framework already contains extensive reporting obligations under CSRD, ESRS, the EU Taxonomy, SFDR and Solvency II. The priority now is coherence, stability and alignment across these rules to avoid unnecessary burden and support the transition.
What simplification delivers
Key steps
duplication
sector-specific standards
Solvency II
4. Digital and innovation
Insurers operate under multiple digital frameworks, including AI, GDPR, DORA, the Cyber Resilience Act and cloud rules. These frameworks often overlap, leading to duplication, legal uncertainty and higher costs. The Digital Omnibus package is the opportunity to streamline.
What simplification delivers
Key steps
5. Data protection
GDPR remains a cornerstone of privacy protection, but parts of the framework impose burdens that do not reflect risk. Greater clarity and proportionality would support innovation and improve consistency while keeping strong safeguards.
What simplification delivers
Key steps
transfers; make monitoring body optional for codes of conduct
6. Supervision and governance
Supervisory complexity and national divergence undermine consistency and predictability. A more coordinated approach would support trust, reduce unnecessary cost and strengthen the single market.
What simplification delivers
Key steps
legislation”
all new measures
Publications
Contacts