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This Single Programming Document covers the period 2019 to 2021 and informs the actions of the European Insurance and Occupational Pensions Authority (EIOPA) during this timeframe. Specifically, this document demonstrates how the Authority will implement its mandate through concrete, measurable activities.
Throughout this period, EIOPA’s overarching mission remains the protection of policy holders and beneficiaries and financial stability. To achieve this, EIOPA will continue to work to deliver high-quality regulation, technical advice and analysis at European level, and support to national competent authorities (NCAs) to strengthen supervision in Europe. EIOPA will also continue to support the European Commission’s agenda to build a strong and trusted financial system.
In the coming years, EIOPA’s key priority is to further enhance supervisory convergence with the aim of moving towards a common supervisory culture. As part of its supervisory convergence agenda, EIOPA will focus on building common standards and interpretations, on leveraging data for risk assessment and supervisory purposes, on monitoring common standards and on challenging and supporting NCAs.
In light of their growing importance, the Authority has added ‘InsurTech’ and sustainable finance to its ongoing priorities. These two cross-cutting themes will draw on expertise from across the organisation.
Within the ‘InsurTech’ theme, EIOPA will assess the impact that digitalisation is having on both consumers and industry, with a view to identifying supervisory approaches that allow innovation to flourish and consumers to benefit while remaining protected. Priorities in this area include the use of Big Data; the fragmentation of the value chain and corresponding impact on business; and cyber risks and cyber insurance. In keeping pace with new approaches, EIOPA will contribute to a regulatory framework that addresses both the opportunities and risks that digitalisation brings to consumers.
In terms of sustainable finance, there is an increasing need for insurers and pension providers to give more consideration to sustainability. EIOPA has therefore made sustainability a central theme in its strategic thinking and will examine how best to include sustainability considerations in supervisory and regulatory frameworks. Activities in this theme include an assessment of the risks that climate change could have on financial stability and guidance on how sustainability factors can be effectively embodied in relevant EU financial legislation. In this way, EIOPA can support sustainability in becoming a central consideration in regulation and supervision.
This document is the result of careful planning and prioritisation so that the Authority is sure to deliver its mandate and meet its strategic objectives. Certain factors, such as proposed changes to the Authority’s mandate, outlined in the European Commission’s review of ESAs, and possible uncertainties stemming from the United Kingdom’s decision to leave the European Union have been taken into consideration. Should proposed changes to the Authority’s mandate come into force, the Authority stands ready to take on new activities, notably in relation to the PEPP, internal models and equivalence.
EIOPA will always need to remain alert and responsive to possible changes in the political and financial climate. The organisation must remain agile to respond to future challenges. In this regard, robust risk management will help to identify threats that may prevent the organisation from achieving its strategic objectives. In addition, making sure that staff, systems and processes are able to adapt to and are resilient to changing priorities will help EIOPA to manage change successfully.
As always, the Authority will act in an independent, transparent and accountable manner.
The Authority’s success in delivering its annual work programme of activities is dependent on close cooperation with stakeholders, and in particular national competent authorities and European institutions.
Sound and effective supervision is at the heart of EIOPA’s mission. Through a holistic and integrated approach, EIOPA aims to deliver its mandate in support of financial stability leading to economic growth and public confidence, while growing further as a credible supervisory authority.