The European Insurance and Occupational Pensions Authority (EIOPA) published today its Supervisory Convergence Plan for 2024. In line with EIOPA’s mandate to build a strong, fair and common supervisory culture and promote consistent supervisory practices in the European Union, the Supervisory Convergence Plan identifies EIOPA’s priorities to enhance supervisory convergence over the course of 2024.
Similarly to last years’ plan, the priorities for 2024 revolve around the following three main areas:
- the practical implementation of the common supervisory culture and the development of supervisory convergence tools;
- the risks to the internal market and the level playing field;
- and the supervision of emerging risks.
EIOPA will, amongst other priorities, initiate a review of the Guidelines on the Supervisory Review Process under Solvency II. This review aims to reflect on the learnings from the implementation of Solvency II and promote further convergence towards high-quality supervision, giving room for supervisory judgement to assess which parts of the text are no longer needed as well as flexibility to deal with national specificities and avoiding being too prescriptive. EIOPA will also continue working on the further development of the supervisory assessments of conduct risks and its supervisory approach to ESG risks. Finally, the development of SupTech tools will remain a priority.
To preserve trust and coherence in the internal market, EIOPA will continue enhancing supervisory convergence in areas potentially impacting the internal market by promoting benchmark studies on internal models and developing guidance to the National Competent Authorities on the supervision of private equity-owned insurance undertakings.
Acknowledging the emerging risks, EIOPA also included among its priorities the implementation of the new framework on digital operational resilience (DORA) where supervisory convergence will be key. EIOPA will likewise continue monitoring the digital transformation of insurance undertakings and identify ways to help supervisors deal with new challenges, particularly in overseeing the use of artificial intelligence by insurance undertakings.
Further information about EIOPA’s supervisory convergence tools, including the full list of all priorities is available in the plan.