EIOPA Finalizes Guidelines on ICT Security and Governance
EIOPA finalized the guidelines on information and communication technology (ICT) security and governance for the insurance sector. The guidelines address how rules on operational risks set forth in the Solvency II Directive and in the Delegated Regulation 2015/35 are applied to the ICT security and governance. EIOPA consulted on the draft guidelines between December 2019 and March 2020 and has also published its response to the key issues raised in the feedback. The guidelines are intended for both market participants and the national supervisory authorities, which are expected to apply these guidelines from July 01, 2021.
The objective of the guidelines is to promote the increase of the operational resilience of the digital operations of insurance and reinsurance undertakings against the risks they face. Operational resilience is key to protecting the digital assets (including their systems and data) of insurance and reinsurance undertakings. The guidelines provide clarification and transparency to market participants on the minimum expected information and cyber-security capabilities and help to avoid potential regulatory arbitrage. These guidelines are also intended to foster supervisory convergence regarding the expectations and processes applicable in relation to ICT security and governance as a key to proper ICT and security risk management.
Competent authorities should, when complying or supervising compliance with these guidelines, take into account the principle of proportionality. This principle should should ensure that governance arrangements, including those related to ICT security and governance are proportionate to the nature, scale, and complexity of the corresponding risks undertakings face or may face. The guidelines should be read in conjunction with the Solvency II Directive, the Delegated Regulation 2015/35, the EIOPA guidelines on system of governance, and the EIOPA guidelines on outsourcing to cloud service providers.
Related Links
Effective Date: July 01, 2021 (expected)
Keywords: Europe, EU, Insurance, Governance, Operational Risk, Solvency II, Cloud Service Providers, ICT Risk, EIOPA
Featured Experts
Paul McCarney
Insurance product strategist; insurance domain expert; extensive experience developing risk assessment frameworks for insurers
Brian Robinson
Actuary; risk management specialist; corporate and capital modelling expert
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.