The European Insurance and Occupational Pensions Authority (EIOPA) started today a consultation on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build those ratios.
The European Insurance and Occupational Pensions Authority (EIOPA) started today a consultation on the relevant ratios to be mandatorily disclosed by insurers and reinsurers
falling within the scope of the Non-Financial Reporting Directive as
well as on the methodologies to build those ratios. Hereby, EIOPA
responds to a call for advice,
addressed to the three European Supervisory Authorities, to support the
European Commission in developing the definitions and methodologies to
be used for the disclosure requirements stemming from the Taxonomy Regulation.
In this consultation, EIOPA considers whether the mandatory ratios of
non-financial undertakings, as set out in the Taxonomy Regulation, are
relevant and appropriate to depict insurance and reinsurance activities
or whether they need to be ‘translated’ to the most appropriate and
comparable key performance indicators for insurance and reinsurance
businesses.
EIOPA suggests requiring two most relevant key performance indicators on sustainability that depict the extent to which:
- the insurer or reinsurer carries out taxonomy-relevant activities - in relation to non-life gross premiums written
- the insurer or reinsurer helps funding taxonomy-related activities - in relation to total assets
EIOPA seeks feedback and comments on the proposed ratios and
regarding potential alternative measures, necessary disclosures around
the approaches taken and methodologies used as well as on the expected
impact of the future mandatory disclosures.
In accordance with the European Commission’s call for advice, EIOPA
closely cooperates with the two other European Supervisory Authorities
to ensure consistent and coherent recommendations from the three
authorities.
The public consultation is open from 30 November 2020 to 12 January 2021.
Following the public consultation, EIOPA will finalise its advice and submit to the European Commission in February 2021.
EIOPA’s sustainability agenda
This consultation paper is part of the broader sustainability agenda
of EIOPA to integrate environmental, social and governance risk
assessment in the regulatory and supervisory framework. EIOPA is
committed to supporting the European insurance and occupational pension
sectors in their transition to climate neutrality and to deliver on the
‘Green Deal’ initiated by the European Commission. A key element to
foster sustainable growth and to channel funding in economic activities
enabling and contributing to environmental, social and
governance-related objectives, is to improve data availability and
therewith the public disclosure of relevant metrics by reporting
entities as well as improving transparency on risks arising from climate
change.
Join our Sustainable Finance Roundtable
on 16 December 2020 and be part of discussion about EIOPA’s ongoing
consultation on the scenario analysis in ORSA, activities on disclosure,
impact underwriting, protection gap for natural catastrophes and
sensitivity analysis for transition risk.
© EIOPA
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