The European Insurance and Occupational Pensions Authority (EIOPA) published today its Supervisory Convergence Plan for 2023.
In line with EIOPA’s mandate to build a common supervisory culture and consistent supervisory practices in the European Union, the Supervisory Convergence Plan identifies EIOPA’s three main priorities to enhance supervisory convergence over the course of 2023:
- the implementation of the common supervisory culture and the development of supervisory convergence tools;
- the risks to the internal market and the level playing field;
- the supervision of emerging risks.
In the area of the common supervisory culture, EIOPA will, amongst other priorities, continue working on the risk assessment framework and the application of proportionality, the supervisory assessments of conduct risks and its supervisory approach to sustainability risks, as well as the development of digital tools for supervisors.
To continue to preserve trust and coherence in the internal market, EIOPA will continue focusing on supervisory convergence by promoting benchmark studies on internal models and addressing lack of convergence in the way national competent authorities (NCAs) treat reinsurance undertakings with the head office in third countries.
Acknowledging the emerging risks, EIOPA also included in its priorities the implementation of the new regulation on digital operational resilience (DORA) where supervisory convergence will be key. EIOPA will also further analyse cyber underwriting practices, in particular the access to cyber coverage for Small and Medium Enterprises. Finally, EIOPA will develop supervisory convergence tools to support NCAs in the performance of the digital business model analysis.
By building up a strong and fair supervisory culture, the plan should also contribute to better protection of policyholders and equal treatment of consumers across the EU internal market.
Further information about EIOPA’s supervisory convergence tools, including the full list of all priorities is available in the plan.