EIOPA analyses cross-border IORPs trends in 2023 report

27 November 2023

End of 2022 data shows that the number of cross-border IORPs active in Europe has remained low and unchanged from the previous year, with only 31 IORPs operating across borders.

The European Insurance and Occupational Pensions Authority (EIOPA) has released its 2023 report on recent developments in cross-border business among Institutions for Occupational Retirement Provision (IORPs) within the European Economic Area (EEA).

End of 2022 data shows that the number of cross-border IORPs active in Europe has remained low and unchanged from the previous year, with only 31 IORPs operating across borders. This reading confirms the continuation of a decade-long trend according to which the number of cross-border IORPs has stopped increasing.

These findings, together with no indications for a rebound in the foreseeable future, suggest that the original objective of the IORP Directive to stimulate a robust internal market for workplace pensions remains unfulfilled.

Key insights from the analysis include:

• High geographical concentration: The majority of cross-border IORPs are concentrated in only a few countries.
• More home and host countries: Despite the low number of cross-border IORPs and the high geographical concentration, there has been a modest rise in the number of both home and host countries, with Latvia and Estonia now added to the respective categories.
• Belgium and the Netherlands leading: Belgium maintains its position as the home country with the broadest geographical coverage, covering 14 different host countries. Meanwhile, the Netherlands continues to host the highest number of cross-border IORPs.

Within the EEA, cross-border IORPs collectively represent approximately 100,000 members and beneficiaries, managing assets totalling around €10.6 billion. Although there was a slight increase in membership compared to the previous year, a significant reduction in assets and liabilities occurred due to the closure of one IORP and weak financial market performance.

The increasing engagement of sponsoring undertakings with cross-border IORPs is noteworthy. This upward trend persists despite the stabilisation in the number of cross-border IORPs and underscores the potential of such arrangements once initial challenges related to their establishment have been overcome.

EIOPA

© EIOPA