EIOPA Amends Decision on Cross-Border Supervisory Cooperation in EU
EIOPA published a report that examines the key financial stability risks in the insurance and pensions sector in EU. The report includes two thematic articles on the impact of insurance stress tests on equity prices and systemic risk and on the potential mitigating role of insurance with respect to the risks of climate change. EIOPA also announced that it amended its Decision on the collaboration of the insurance supervisory authorities of the member states in the European Economic Area. The Decision became applicable from July 01, 2021.
The amended Decision takes into account the requirements defined in the Solvency II Directive, the recommendations to EIOPA from the Peer Review on Collaboration, and EIOPA’s own experience in the implementation of the previous Decision. In December 2019, the Solvency II Directive had introduced new notifications requirements for national competent authorities in case of an undertaking carrying out cross-border activities in another member state (Article 152a) and defined the regulatory framework for the cooperation platforms (Article 152b) previously established on the basis of the Decision on collaboration. In this context, the amended Decision will further strengthen and enhance the cooperation between the national competent authorities in relation to cross-border activities through:
- the introduction of three new notifications requirements for national competent authorities: notification in case of intention to authorize an undertaking with cross-border activities, in case an undertaking carrying out cross-border activity shows deteriorating financial conditions or other emerging risks that may have cross-border effects, and in case of serious and reasoned concerns with regard to consumer protection
- a more active role of EIOPA in the information exchange to allow the identification of potential risks at the earliest possible stage as well as to foster proactive supervision and timely supervisory actions
- the clarification of the role of national competent authorities and EIOPA in the process of setting up and running cooperation platforms
The Decision states that supervisory authorities shall perform the notifications and information exchange set out in its Annex by e-mails, until EIOPA develops an appropriate IT tool for this purpose. EIOPA shall provide an e-mail address to the supervisory authorities to enable them to perform the notifications and information exchange. If certain supervisory tasks fall under the competence of other supervisory authorities that are not members of the Board of Supervisors, those supervisory authorities may, subject to approval by the Board of Supervisors, apply this Decision by signing a declaration of commitment, if this contributes to further strengthening cross-border cooperation. EIOPA will continue to monitor the implementation of the Decision and will use its supervisory convergence tools to ensure a consistent application across EU.
Related Links
- Press Release on Financial Stability Report
- Financial Stability Report (PDF)
- Thematic Article on Insurance Stress Tests
- Thematic Article on Climate change
- Press Release on Decision
- Decision and Annex
Effective Date: July 01, 2021 (Decision)
Keywords: Europe, EU, Insurance, Financial Stability Report, Stress Testing, Climate Change Risk, Solvency II, Cross Border Cooperation, Supervisory Convergence, EIOPA
Featured Experts

Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager

James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.

Nihil Patel
Data scientist; SaaS product designer; credit portfolio analyst and product strategist; portfolio modeler; correlation researcher
Previous Article
EC Deems Derivatives Regime in Certain Countries to be EquivalentRelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.