Introduction: A Structural Reform for the Financial Sector
The European Union continues its commitment to adapting the prudential framework to market developments and systemic challenges. In this context, the draft Delegated Regulation amending Solvency II, scheduled to take effect in January 2027, represents a pivotal step for the insurance sector and, by extension, for asset management and banking.
This reform seeks to strengthen insurers’ financial resilience, enhance risk management, and foster long-term investment, particularly in support of the ecological transition. For HR decision-makers and risk management leaders, it marks a strategic turning point: regulatory compliance is no longer limited to technical adjustments; it directly reshapes operating models and the skills required internally.
In this article, we provide an overview of the key regulatory changes, an analysis of their operational implications, and a forward-looking view of the HR and recruitment challenges they generate.
1. Key Changes Introduced by the Draft Solvency II Delegated Regulation
Reinforcement of the Prudential Framework
The reform does not alter the fundamental principles of the 2016 Solvency II regime but fine-tunes several critical parameters:
- Capital requirements: adjustment of the Solvency Capital Requirement (SCR) calculation to better reflect actual risks, particularly under market stress conditions.
- Volatility and spread adjustments: revised rules for accounting for bond market volatility, especially relevant for insurers with significant exposure to sovereign and corporate debt.
- Risk margin: reduction of its weight on the balance sheet, enabling more accurate calibration of prudential requirements relative to effective risks.
Incentives for Sustainable Investment
One of the most significant innovations is the stronger integration of ESG criteria:
- Greater recognition of insurers’ role in financing the energy transition.
- Reduced capital charges for certain long-term green investments.
- Alignment with EU sustainable finance regulations (Taxonomy, SFDR).
Enhanced Harmonisation and Transparency
The draft also provides for improvements in reporting and communication:
- Stricter transparency requirements towards investors and supervisory authorities.
- Increased convergence among Member States to limit regulatory arbitrage.
In short, the reform seeks to strengthen sector resilience while steering capital allocation towards greater sustainability and efficiency.
2. Operational Implications for Insurance and Asset Management
For Insurers: Balancing Resilience and Competitiveness
Insurers will need to adjust actuarial models, reassess strategic asset allocation, and expand stress-testing capabilities. In practice:
- Asset-liability management (ALM): portfolio optimisation to balance returns, solvency, and sustainability.
- Capital steering: more nuanced trade-offs between dividend distribution, growth investments, and prudential coverage.
- Actuarial function: greater model complexity, requiring expanded and specialised teams.
For Asset Management: Opportunity and Responsibility
As strategic partners to insurers, asset managers must embed these constraints into mandate design:
- Development of investment solutions compliant with the revised Solvency II framework.
- Increased emphasis on ESG strategies and long-term infrastructure.
- Strengthened dialogue with insurers to align financial and prudential objectives.
For Banks: Risk Coordination and Interconnection
Although primarily aimed at insurance, the reform also generates indirect consequences for banks, notably through:
- Financing and risk-hedging relationships.
- Alignment of prudential requirements across the EU.
- Closer cooperation with risk management and compliance functions.
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3. HR and Recruitment Challenges – Towards a New Skills Landscape
Increasingly Specialised Profiles
The reform intensifies demand for experts capable of navigating a highly technical and regulated environment. Priority profiles include:
- Solvency II actuaries (SCR modelling, calibration, volatility adjustments).
- Risk management specialists (stress testing, ORSA, climate risk management).
- ESG and sustainable finance experts (integration of non-financial criteria, regulatory reporting).
Upskilling Existing Teams
Beyond external hiring, insurers and asset managers must invest in continuous training:
- Raising awareness among teams about sustainable finance.
- Developing data science skills applied to risk modelling.
- Strengthening interpersonal skills: communication, pedagogy, and the ability to work transversally across risk, finance, and HR functions.
Talent Attractiveness and Competition
With the application set for 2027, the timeframe to build teams ready for the new requirements is short. Competition for scarce profiles is already intensifying, particularly in Europe’s major financial hubs. In this context, the role of a specialised insurance recruitment agency is crucial in:
- Identifying critical competencies.
- Targeting the right talent pools.
- Supporting companies in defining onboarding and retention pathways.
Conclusion: Anticipating Tomorrow’s Needs Today
The Solvency II reform illustrates the financial sector’s ongoing need to adapt to economic, technological, and environmental challenges. While regulatory changes are scheduled for January 2027, operational and HR impacts are already tangible.
Organisations that anticipate the framework and build robust teams now will secure a lasting competitive edge.
Our firm, a specialist in insurance, banking, and asset management recruitment, supports sector players through this transformation. We help identify specialised profiles, anticipate evolving skills needs, and strengthen corporate attractiveness among key talent.
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Auteur : Emerique Opou
Founder and CEO of Emérique & Partners
London, United Kingdom
Named to Staffing Industry Analysts‘ Global Power 150 Women in Staffing list in 2022, Emérique has over 15 years’ expertise in recruiting niche profiles in banking and insurance.
Its rich pan-European experience has enabled it to build a solid network of professionals in the banking and insurance sectors, including actuaries, quantitative finance experts, risk managers and audit and compliance experts.
In 2024, Emérique & Partners was a finalist in the Recruitment industry, entrepreneur of the year category at the Recruiter Awards in London.
In 2024, she was also a finalist in the SME national business awards in the ‘business woman of the year’ category in the United Kingdom. Every quarter, Emérique analyses the major trends in the French and European banking and insurance markets.
His rich pan-European experience has enabled him to build a solid network of professionals in the banking and insurance sectors, notably with actuaries, quantitative finance experts, risk managers, and compliance experts.
Emérique & Partners recruits exclusively at executive and senior management levels.
Every month, Emerique deciphers the major trends in the French and European banking and insurance market.
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