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.