EIOPA published its updated work program for 2019. The work program highlights and specifies the activities and tasks of EIOPA for the coming year, within the framework of a multi-annual work program for 2019–2021. The strategic objectives include driving forward conduct of business regulation and supervision, leading convergence toward high-quality prudential supervision throughout the EU, and strengthening the financial stability of the insurance and occupational pensions sectors.
One of the high-priority focus areas of EIOPA for 2019 is to promote supervisory convergence in the area of insurtech. This involves facilitating a level playing field throughout Europe based on the principle of proportionality and pursing a technology-neutral approach to financial innovation. In this area, EIOPA has set the following priorities for 2019:
- Fragmentation of the value chain and impact on business models—It is necessary for supervisors to understand the (new) modus operandi for both incumbents and start-ups, together with the impact and change of business 34 modes to provide appropriate risk-based supervision. As part of this process, the understanding of new evolving business models is particularly important.
- Big Data—A priority because of the potential detriment to consumers when pricing is done using non-risk-based data raising potential ethical issues.
- Cyber risks—An area of growing implications in terms of both opportunities and risks to industry and consumers alike.
In terms of prudential supervision, EIOPA has the following key priorities for 2019:
- Further development of the regulation and eventually authorization of Pan-European Personal Pension, or PEPP, (Commissions legislative proposal)—Several areas of the regulation of PEPP, for example, regarding the default investment option and transparency about the product deserve further guidance to promote the design of appropriate PEPPs.
- Preparing the ground for EIOPA’s Opinion, due in 2020, on the Long-Term Guarantee (LTG) Measures—On the basis of robust evidence on their effectiveness, testing ideas for improvement and considering impact on existing regulation.
- Further refinement of the International Capital Standard (ICS) 2.0 as reference ICS and starting confidential reporting to international colleges—After the decision of IAIS announcing a unified path to convergence of group capital standards in furtherance of its ultimate goal of a single ICS that achieves comparable outcomes across jurisdictions, implementation work will start to be performed.
- Achieving proportionate and relevant application of Institutions for Occupational Retirement Provision (IORP) II throughout Europe—By applying IORP II, the national supervision of IORPs is enabled to reach deeper analysis and a multi-faceted approach to assessing the sustainability of IORPs. This is further supported by sophisticated studies based on a broader set of relevant pensions data.
- Completion of a European Single Rulebook—Supervisory convergence can only be achieved against a harmonized set of rules, ensuring a relative standardized approach, implementation, and practices across Europe.
Keywords: Europe, EU, Insurance, Work Program, Insurtech, ICS, IORP, Long Term Guarantee, PEPP, EIOPA
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