04 November 2019

EIOPA's Gabriel Bernardino statement at the hearing of the Committee on Economic and Monetary Affairs of the European Parliament

Mr Bernardino spoke about EIOPA’s work in strengthening supervisory convergence, the impact of the current financial and economic environment on the sectors and on EIOPA’s current focus on climate change, cyber risk and the completion of the Capital Markets Union.

Over the past year, EIOPA has strengthened its work on conduct of business supervision where EIOPA identified four priorities: life insurance sold together with mortgages; unit-linked products; add-on insurances; and claims handling in motor insurance.

It is EIOPA’s view that, overall, the Solvency II framework is effective and works well. The fundamentals are not in question. Instead, EIOPA sees the outcome as evolution rather than revolution. Beyond the necessary adjustment of the interest rate risk calibration, that was not taken on board by the European Commission in the 2018 Solvency II review, EIOPA aims for a balanced impact of its proposals.

Earlier this year, EIOPA published an Opinion on how to integrate climate-related risks in Solvency II. While EIOPA sees no current evidence to support a green supporting factor in the capital requirements, EIOPA sets its expectation that insurers play a stewardship role in contributing to climate change adaptation and mitigation, through their investment and underwriting activities.

EIOPA’s thematic review on the use of big data analytics in motor and health insurance showed that digital technology brought many opportunities for the industry as well as for consumers, but also highlighted issues linked to fairness and ethics. This is one of the reasons why EIOPA has set up a consultative expert group to assist us in the development of principles of digital responsibility in insurance.

On the Capital Markets Union, the demand side must be EIOPA’s next focus, so that private savers can benefit from capital markets. EIOPA is currently working on the technical standards and technical advice for the implementation of the pan-European Personal Pension Product (PEPP).

Mr Bernardino concludes: “EIOPA will continue to deliver on its mission and will take on the new tasks and responsibilities, introduced in the recent review of our regulation, focussing on the priorities of supervisory convergence and consumer protection established by you. To deliver to your expectation we need adequate human and financial resources, and I am sure you will continue to support us on that. We are working for an EU that protects and an EU that empowers. Most of all, we are working for an economy that works for the people.”

Full statement on EIOPA

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