European financial regulators this month published new guidelines seeking diversity on the boards of insurance and reinsurance companies.

The European Insurance and Occupational Pensions Authority published guidelines regarding diversity in the selection of members of administrative, management or supervisory bodies.

A memo from an interested law firm states: “Insurance and reinsurance undertakings should review and update their diversity policies and governance frameworks to ensure compliance with the new guidelines by January 30, 2027.

“This includes setting and documenting quantitative gender-balance objectives, considering a broad range of diversity aspects and ensuring anti-discrimination measures are in place.”

EIOPA’s issuance of the guidelines is mandated under Solvency II, according to an educational article by Skadden, Arps, Slate, Meagher & Flom LLP, which said the approach seeks to bring the insurance sector into closer alignment with the diversity frameworks established in other areas of the financial sector.

The guidelines will take effect starting January 30, 2027. Competent authorities are required to notify EIOPA by mid-December 2025 of their intention to comply.

The article said the provisions are intended to expand the range of experience, knowledge, skills and values represented within the AMSB, fostering a broader spectrum of perspectives and experiences and support independent thinking and strong decision-making.

EIOPA is mandated under Solvency II to define diversity and provide additional guidance aimed at enhancing diversity within the AMSB of insurers and reinsurers, as well as improving the effectiveness of diversity policies.

Diversity includes educational and professional background, gender, age and geographical provenance, with a particular emphasis on gender balance.

When developing their policies, companies are expected to consider the nature, scale and complexity of their business. This approach allows smaller or less complex organisations to adopt simpler policies and processes and better align with each company’s risk profile and business model.

The new diversity policy should be designed to ensure that a broad spectrum of skills, experiences and perspectives are represented, according to the Authority. The policy should also address diversity factors such as educational and professional background, gender, age and geographical provenance, and should set clear time frames and methods for achieving gender balance. The policy may also provide for employee representation to account for practical internal experience and staff interests.