The European Insurance and Occupational Pensions Authority (EIOPA) have published a speech given by Gabriel Bernardino, EIOPA Chair, setting out their top priorities in the current changing regulatory environment.
In order to build up sustainable long-term investment and economic growth we need a stable and strong insurance sector that adequately prices risks, applies robust risk management strategies and treats customers fairly.
There are three top priorities that EIOPA is focusing on:
- further enhancing supervisory convergence: the main objective of supervisory convergence is to ensure that all EU policyholders benefit from high-quality and consistent supervision. EIOPA are now focusing on conduct of business supervision in face of the Insurance Distribution Directive and the Packed Retail and Insurance-based Investment Products implementation;
- reinforcing consumer protection in an era of digital transformation: EIOPA maintains a forward-looking perspective to regulation and supervision aiming at the early identification of significant trends that can affect the market and consumers. However, weighing both the benefits and the risks associated with the current level of technological innovation, the three European Supervisory Authorities agree that any legislative intervention at this point would be premature but any future developments will be closely monitored; and
- maintaining financial stability in a changing environment: in the medium-term, it is fundamental, both for consumer protection and the proper functioning of the internal market, to build a minimum harmonised approach to insurance guarantee schemes in the European Union. EIOPA is assessing the need and possible elements of such a framework and intends to issue a discussion paper before summer.
EIOPA supports the proposals of the European Commission to reinforce integrated supervision in Europe, with the proposed stronger role of EIOPA on supervisory convergence.