EIOPA has set out the work priorities for 2021-2023, taking into account the current market situation in light of the COVID-19 pandemic. COVID-19 crisis management, risk mitigation, and active support to recovery of the European economy will be the key focus areas. In addition, EIOPA will continue to work on a number of activities in the areas of digitalization and cyber risk, sustainable finance, supervisory convergence, financial stability of the insurance and occupational pensions sectors, and the pan-European Personal Pension Products. Consumer protection will also remain a key strategic priority in light of the increasing risks emerging from the crisis. The document that details the work priorities for 2021-2023 also includes Annual Work Program of EIOPA for 2021. The key priorities for 2021 are related to suptech, cyber-resilience of the insurance market, cyber-underwriting market, monitoring market developments, and the evolution of new technologies, business models, and sustainable finance.
The following are the four strategic focus areas of the work program for 2021-2023:
- Driving forward conduct of business regulation and supervision. EIOPA will contribute to reviews of the Insurance Distribution Directive (IDD) and the packaged retail and insurance-based investment products (PRIIPs) Regulation by providing analysis, advice or, where appropriate, legislative proposals concerning required revisions or changes. EIOPA will continue to work, together with the other ESAs, on enhancing sustainable finance disclosures under the Sustainable Finance Disclosure Regulation. EIOPA will enhance the core tools and develop new tools for its risk-based conduct of business framework with a focus on data collection and use. EIOPA will review the retail risk indicators and consumer trends methodology to reflect amendments resulting from Solvency II review in the area of reporting.
- Leading supervisory convergence to ensure high-quality prudential supervision. Following its opinion of December 2020 on the review of the Solvency II Directive and Delegated Regulation, EIOPA will work on any identified follow-up area and consider reviewing relevant technical standards and guidelines. EIOPA will continue to work on the risk-free rate methodology as well as the transition to new benchmarks for risk-free rates. EIOPA is also monitoring the green and sustainable investment field and will take action as necessary or at the request of EC. Finally, EIOPA will continue work and engagement with IAIS and other international bodies, in addition to implementing the project BI 2.0 as part of its continuous improvement of the business intelligence and data analytics framework.
- Strengthening financial stability of insurance sector. EIOPA will further enhance its core risk analysis products and risk identification toolkit. Increasing the time between stress tests will allow a comprehensive follow-up of the findings while conducting focused analyses/studies in the interim. EIOPA will focus on building the methodological toolkit for vulnerability analysis. Inclusion of environmental, social, and governance (ESG) factors in risk and vulnerability analysis of EIOPA will be another focus point. EIOPA will further enhance analyses and conduct studies on emerging risks as part of its early risk identification and prevention process, including assessing the impact of climate change and ESG aspects on financial stability.
- Continuing to deliver its mandate while remaining adaptable to new priorities. EIOPA will make the most of synergies with other EU agencies in areas such as procurement to reduce administrative burden and costs. EIOPA will ensure transparency and accountability in its governance structures and stakeholder relations. It will also run initiatives to achieve greater maturity in the security of its staff, information, IT, and its assets, in addition to enhancing its information technology infrastructure and applications.
Keywords: Europe, EU, Insurance, Solvency II, COVID-19, PRIIPs Regulation, Sustainable Finance, Digitalization, ESG, Cyber Risk, IDD, Stress Testing, Reporting, SFDR, Climate Change Risk, Work Program, EIOPA
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