Pablo Muelas and Ana Martínez-Pina analyse the impact of the Solvency II reform on Spanish insurers | El Economista

The Solvency II reform promises to release billions of euros of capital currently held by Spanish insurers, at a time when European regulation seeks to encourage strategic investments and optimise the sector’s solvency.

Pablo Muelas, partner in charge of the insurance practice, explains: “The regulator, understandably, has not yet issued a statement, but the Commission estimated that this regulation could free between €48 billion and €90 billion. Considering that Spain represents between 5% and 8% of the industry, that would be the broad range.” On investment incentives, Muelas adds: “For certain types of equities, of high quality and with a market that allows them to be liquid, the capital requirement is reduced to 22%, compared to 39% or 49% for more volatile or less liquid equities.”

Ana Martínez-Pina, partner in financial regulation, highlights the implementation timeline: “The issue is parliamentary processing, which is currently complicated.” The project depends on another law that must be approved by both the Congress and the Senate, with the planned entry into force scheduled for 30 January 2027.

With these changes, Spanish insurers could optimise their capital, encourage strategic investments, and adapt to a more flexible regulatory framework, although the legal and parliamentary process will remain key to ensuring compliance and the effectiveness of the reform.

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