The European Insurance and Occupational Pensions Authority (EIOPA) has highlighted its policy work over the past year with the publication of its annual report.

The association said it has met its goals in line with its overall strategy, in areas such as sustainable finance, digitalisation, supervision, policy, risks and financial stability and governance. This is despite facing the challenges of geopolitical conflicts, high interest rates, inflation, and market volatility.

In terms of policy, EIOPA’s key achievements include supporting the continuing review of Solvency II, discussions on recovery and resolution for the insurance sector and technical advice on the review of the IORP II Directive.

EIOPA also continued to strengthen supervision and supervisory convergence, through its work to reduce detriment to consumers, through its focus on value for money and the financial health of consumers. To enhance the quality and effectiveness of supervision, EIOPA made good use of its supervisory and oversight tools. This includes active engagement with and visits to national competent authorities (NCAs) and third-country parties.

Regarding sustainable finance, EIOPA furthered its work in measuring and closing protection gaps. This included the development of the natural catastrophe dashboard; promoting climate-related adaptation measures in non-life underwriting practices; further developing work related to greenwashing; as well as work on the disclosure requirements in the Sustainable Finance Disclosure Regulation.

In the area of digitalisation, EIOPA monitored the adoption of digital technologies, including artificial intelligence and open insurance. Together with the European Supervisory Authorities, EIOPA worked on the various policy mandates within the Digital Operational Resilience Act (DORA) aimed at strengthening the IT security of financial entities. During the year, EIOPA also adopted a new digital strategy which defines how it will support consumers, markets, and the supervisory community through digital transformation.

Furthermore, EIOPA continued to assess the risks and vulnerabilities the insurance and occupational pensions sectors are facing. For example, the association examined how high inflation and interest rates affected the market and consumers.

Last year also saw EIOPA chair the EU Agencies Network, a forum bringing together all 51 EU agencies and joint undertakings across Europe. Looking ahead, EIOPA said it will continue to make sure the industry is stable and well-regulated, for the benefit of policyholders and beneficiaries, businesses, and the economy.

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