EIOPA on Supervisory Practices for Cross-Border Activities of Insurers

The recommendations are focused on closing the gaps that may have a negative impact on the effectiveness of the supervisory process and are necessary to further improve cooperation among national supervisory authorities. The recommendations address those main areas: 

• Information needed in case of authorization of a new undertaking in case of previous authorizations sought in other member states or where the applicant intends to operate exclusively (or almost exclusively) in another member state
• Information exchange and procedures in case of notification process for activities such as freedom of establishment and freedom to provide services
• Improvements and updates of the data storage tools aiming to keep readily available all necessary information to share with other authorities concerning cross-border activity

Increased cross-border activity in the EU internal market makes the EIOPA Decision on the collaboration of the insurance supervisory authorities a fundamental tool for reinforcing collaboration and building a common European supervisory culture. In this peer review, EIOPA has analyzed legal and regulatory frameworks and national supervisory practices across 32 national supervisory authorities  with regard to the application of the Decision. Differences in national supervisory authorities’ approaches and practices in this area were found, and as a result, EIOPA issued a high number of recommended actions (60 recommended actions to 26 national supervisory authorities  with the aim of achieving greater supervisory convergence.  EIOPA identified several best practices in relation to four aspects of the collaboration that are being applied by national supervisory authorities. These practices are related to effective implementation of the Decision, the notification processes, and ongoing supervision divided into informal regular information exchange between authorities and supervisory activities to support the ongoing supervision.

The national supervisory authorities are expected to implement the recommended actions by the fourth quarter of 2022. EIOPA will take the follow-up actions starting in 2021 and 2022. Regarding the follow-up, starting by the end of 2022, EIOPA will, in line with the EIOPA Regulation, assess how national supervisory authorities have implemented the recommended actions. EIOPA will in its assessment take into account the way national supervisory authorities have implemented improvements after the reference period, as an immediate response to the peer review or to the issued recommended actions.

Related Links

• News Release
• Report (PDF)
• Decision

Keywords: Europe, EU, Insurance, Solvency II, Cross-Border Cooperation, National Supervision, Solvency II Review, EIOPA