The European pensions sector should address current challenges to foster resilience, innovation, and inclusivity, European Insurance and Occupational Pensions Authority (EIOPA) chairperson, Petra Hielkema, has said.

Speaking at EIOPA’s Annual Conference yesterday, 21 November, in Frankfurt, Hielkema offered “five key imperatives” to achieve this.

These include being robust and resilient in the face of volatility and increasing risks, protecting and providing peace of mind, building a market that is fair and inclusive for all consumers, becoming adaptive and data-driven in addressing emerging risks, and getting smarter and more efficient to deliver real value.

Hielkema said resilience was the “only way” the industry could support the ongoing transitions.

“We need risk and evidence-based capital requirements to maintain stability, particularly during uncertain times. The industry needs to be robust to withstand any financial distress that could lead to failures,” she added.

She also referenced the ongoing review of Solvency II, artificial intelligence (AI), and the Digital Operational Resilience Act (DORA) as measures that could “boost” the resilience of the sector.

In addition to this, she argued for the industry to “live [its] purpose to protect society from major risks and provide peace of mind”, emphasising that if there was ever a moment to deliver on this purpose, it was now.

Regarding the pension gap, Hielkema said: “We will need a range of solutions: Tailored ones to account for the differences in pension systems across member states, but also the common four approaches, because ageing populations and fewer workers to support retirees, is the core problem that affects us all.

“While the first pillar is essential, it may not be sufficient on its own. In this context, EIOPA supports the introduction of auto-enrolment in occupational pension schemes to encourage additional savings. Financial education and simple retirement products should be prioritised.”

In addition to this, she noted the industry needed to recognise the cyber and health gap, arguing that despite the products not being there yet, demand needed to be met.

She also stressed that EIPOA’s work on value for money was a “key” element of being fair and inclusive, as “consumers need products that are informed by behavioural insights and tailored to their needs".

Hielkema said: “I strongly believe EIOPA, through its board of supervisors, must have the ability to intervene in cross-border cases that remain unresolved due to inaction by a national supervisor. EIOPA should be equipped with the same powers as a national supervisory authority, to be used as a last resort and following the agreement of the EIOPA board of supervisors."

Hielkema also highlighted that the pension sector needs to be “ready” for digital changes, emphasising that being data-driven was “essential”.

The fifth key imperative — being smart and efficient — focuses on reducing regulatory burdens without compromising the quality or utility of data. Hielkema explained this begins with streamlining reporting requirements.

“EIOPA is actively working to reduce the reporting burden through initiatives like simplifying guidelines, developing a common data dictionary, streamlining data collection, and refining reporting and disclosure frameworks. These actions reduce the burden on industry players while ensuring that what we collect is impactful and meaningful,” she added.

“The five imperatives I have outlined, must become practice. The EU’s progress has always been built on cooperation, the board of EIOPA has always built on cooperation, and I believe that through continued collaboration, we can achieve this together.”

---