EIOPA Supervisory Convergence Plan

On Feb. 12, EIOPA issued 2020 supervisory convergence priorities.

  • Published supervisory convergence plan for 2020, identified supervisory technology (SupTech), pensions and cyber underwriting as new supervisory convergence priorities.
  • Issued SupTech strategy, cyber underwriting strategy, Cyber underwriting: In Brief.
  • Overview
  • Plan for 2020 sets out priorities and activities for the coming year, building on previous years’ work while incorporating new priorities to reflect new trends and emerging risks.
  • Activities fall under 3 areas: practical implementation of common supervisory culture and further development of supervisory tools; supervision of emerging risks.
  • Risks to internal market / level playing field which may lead to supervisory arbitrage.
  • Three new priorities identified for 2020: SupTech; pension issues; cyber underwriting.
  • SupTech
  • SupTech is use of technology by supervisors to deliver innovative, efficient supervisory solutions to support more effective, flexible, responsive supervisory system.
  • In 2020, EIOPA and NCAs will work together to develop such solutions.
  • Note aims to define strategy, covers prudential and conduct of business supervision, policy and interaction with entities, for insurance and occupational pensions sectors.
  • Pension Issues
  • The aim is to promote supervisory convergence in the area of supervision of IORPs.
  • EIOPA will identify and monitor supervisory risks in the authorization of cross-border IORPs, with a view to developing appropriate supervisory responses.
  • Cyber Underwriting
  • EIOPA will promote appropriate cyber underwriting and cyber risk management practices by industry, as well as good supervisory practices, and promote adequate assessment and mitigation tools to address potential systemic cyber / extreme risks.
  • Plan developed according to risk-based approach and in close cooperation with NCAs.
  • Strategic tool supports EIOPA in goal to build a European common supervisory culture.
  • Outlined strategic priorities re cyber insurance market, put strategy into context, discussed work undertaken so far by EIOPA and outlined the proposed way forward.

Regulators EU EIOPA
Entity Types Ins; Pension
Reference PR, 2/12/2020; IORP Dir 2016/2341, Dir 2003/41; FinTech; Cyber
Functions BCS; Exams; Financial; Reporting; Risk; Technology; Treasury
Countries European Union; Cross-Border
Products Insurance; Insurance-Casualty; Insurance-Health; Insurance-Life; Insurance-Property; Pensions
Regions EMEA
Rule Type Guidance
Rule Date 2/12/2020
Effective Date 2/12/2020
Rule Id 71822
Linked to N/A
Reg. Last Update 2/12/2020
Report Section EU

Last substantive update on 02/13/2020