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EIOPA Launches Consultation on Contract Boundaries


The European Insurance and Occupational Pensions Authority (EIOPA) has launched a consultation on the revision of the Solvency II Guidelines on contract boundaries (Guidelines).

The Guidelines apply to (re)insurance undertakings. They promote a consistent application of a (re)insurance contract boundary to determine whether the additional cover arising from policyholders’ options is regarded as existing or future business of the (re)insurer.

There will be particular focus in the updated Guidelines on the unbundling of a (re)insurance contract and the assessment of whether a financial guarantee or a cover has a discernible effect on the contract’s economics. The updated Guidelines will also reflect that contract boundaries should not be considered to apply at a single point in time. Rather, they are a boundary between the premiums and obligations that belong to the contract and those that do not. 

The deadline for responses to the consultation is 12 November 2021. EIOPA will consider the feedback received, publish a final report on the consultation and submit the revised Guidelines for adoption by EIOPAs Board of Supervisors.

The revised Guidelines are expected to come into force in 2022.

For more information, contact a member of the Insurance team or your usual William Fry contact.


Contributed by Cliodhna Hand