Sustainable finance

Sustainable finance in the insurance and pensions sector

Sustainability is at the heart of the EU project and is key in ensuring long-term competitiveness of the EU economy and with it, the insurance and pensions sector.

Insurers and pension funds, as managers of large parts of society’s risks and important long-term investors have a particular interest in mitigating the impact of climate change and  facilitating the transition to a more sustainable and resilient economy.

By integrating sustainability considerations from an environmental, social and governance (ESG) perspective into the regulatory and supervisory framework for insurers, reinsurers, insurance distributors and pension providers, EIOPA contributes to the European Commission's Sustainable Finance Action Plan and to the ‘Green Deal’.

EIOPA has been implementing an ambitious strategic plan on sustainability and climate change with the following objectives: 

  • Insurers should manage and mitigate ESG risks through their underwriting activity;
  • Insurers and pension funds should reflect policyholder and pension scheme member preferences for sustainable investments, where relevant; 
  • Insurers and pension funds should adopt a sustainable approach in their investments based on principles of stewardship

EIOPA’s projects in sustainable finance

EIOPA has been carrying out several projects to establish its policy on sustainable finance and to develop tools and methods for ESG risk analysis, with a view to embed ESG risk analysis in regulation as well as in supervision.

EIOPA publically consults and organizes regular Roundtables on Sustainable Finance, to discuss its proposals with participants from EIOPA’s Stakeholder Groups, the European Commission, representatives of the insurance and pensions, asset management and rating industries, and representatives of consumers associations and civil society.

At its latest Roundtable on Sustainable finance, EIOPA stressed the importance for insurers and pension funds to manage sustainability risks as part of their risk management, as well as to contribute to reducing risks to sustainability for society.

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EIOPA is a member of the Network for Greening the Financial System and of the Sustainable Insurance Forum, as well as the European Commission's Sustainable Finance Platform for the taxonomy on sustainable economic activities.

In addition, EIOPA is aiming to improve its own environmental performance as an institution and to lower its impact on the environment. EIOPA has registered to the EMAS (Eco Management and Audit Scheme).

EIOPA’s mandate on sustainable finance, following the review of its founding regulation, is to:

  • take into account sustainable business models and integration of ESG-related factors in the areas of its competence, 
  • develop criteria for identifying systemic risks and an adequate stress-testing regime, including potential environmental-related systemic risk, 
  • put in place a monitoring system, and 
  • develop common methodologies for union-wide assessment of resilience of financial undertakings taking into account risks stemming from adverse environmental developments and of the effect of environmental risks on the financial stability of financial institutions.

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Solvency II | Sustainability | Impact underwriting

EIOPA issues opinion on sustainability within Solvency II

Frankfurt, 30 September 2019 – The European Insurance and Occupational Pensions Authority (EIOPA) published today an Opinion on Sustainability and Solvency II. The Opinion addresses the integration of climate-related risks in Solvency II Pillar I requirements. While Solvency II - as a risk-based,...
Financial stability | Risk assessment

Risks and Vulnerabilities in the EU Financial System

The report covers the impact of a no-deal Brexit on financial activities, risks related to the low interest rate environment, as well as climate change risks.
Justin Wray | PEPP | Solvency II | Sustainability

Interview with Justin Wray

​Interview with Justin Wray, Deputy Head of the Policy Department of EIOPA, conducted by Evgenia Tzortzi for Kathimerini.
Big Data | Sustainability

EIOPA calls for candidates to join Consultative Expert Group on Digital Ethics in insurance

Today, the European Insurance and Occupational Pensions Authority (EIOPA) issued a call for candidates to join a Consultative Expert Group on Digital Ethics in insurance. EIOPA recently published the key finding of its thematic review on the use of Big Data Analytics (BDA) in motor and health...
Big Data | Sustainability

Call for expression of interest: EIOPA Consultative Expert Group on digital ethics

Solvency II | Sustainability

Consultation on an opinion on sustainability within Solvency II

The European Insurance and Occupational Pensions Authority (EIOPA) launched a consultation on a draft opinion on sustainability within Solvency II. The draft opinion forms part of EIOPA's strategic activities on sustainable finance and follows a call for opinion from the European Commission. The...
Risk assessment | Sustainability | Financial stability

Impact of Green Bond Policies on Insurers: Evidence from the European Equity Market

This article empirically investigates whether the introduction of green bond policies by insurance companies have a positive impact on their equity prices. To this aim, the sample of listed (re)insurers in Europe using monthly data for years 2012 – 2019 is employed. Announcements, press releases...
Risk assessment | Sustainability | Financial stability

Impact of Green Bond Policies on Insurers: Evidence from the European Equity Market

This article empirically investigates whether the introduction of green bond policies by insurance companies have a positive impact on their equity prices. To this aim, the sample of listed (re)insurers in Europe using monthly data for years 2012 – 2019 is employed. Announcements, press releases...
Solvency II | Sustainability

EIOPA launches consultation on opinion on sustainability within Solvency II

The draft opinion aims at integrating sustainability risks, in particular those related to climate change, in the investment and underwriting practices of (re)insurers. The opinion addresses the valuation of assets and liabilities, assesses current investment and underwriting practices and seeks to...
Stress test | Sustainability

Occupational pensions stress test 2015

Objective​​ Stress tests are an important supervisory tool to examine the sensitivity of the occupational pensions sector to adverse market developments and to reach robust conclusions for the stability of the financial system as a whole and to enhance consumer protection. The aim of the exercise...
Financial stability | Risk assessment

ESAs launch consultation on technical standards on the reporting of intra-group transactions and risk concentration for Financial Conglomerates

The three European Supervisory Authorities, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities Markets Supervisory Authority (ESMA) launched today a consultation on draft Implementing Technical Standards (ITSs) on the...
Risk assessment

ESAs publish amended technical standards on the mapping of ECAIs under the Capital Requirements Regulation

The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today a second amendment to the Implementing Technical Standards (ITS) on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital...
Sustainability

EIOPA submits advice on Sustainable Finance to the European Commission

The European Insurance and Occupational Pensions Authority (EIOPA) published today its advice to the European Commission on sustainability in the areas of risk management, investment strategy, stewardship and product oversight. For EIOPA, sustainability is an area of significant strategic...
Solvency II | Sustainability

EIOPA seeks evidence on integration of sustainability risks in Solvency II

Page Content ​Market participants to provide evidence on the integration of sustainability risks in investment and underwriting practices Call for Evidence part of EIOPA's action plan on sustainable finance. The European Insurance and Occupational Pensions Authority (EIOPA) today issued a Call for...
Sustainability | Gabriel Bernardino

Sustainable finance – sustainable pensions?

Keynote address by Gabriel Bernardino, Chairman of EIOPA, at the 19. Handelsblatt Annual Conference in Berlin.
Sustainability | IORP | Gabriel Bernardino

EIOPA's Initatives to Empower the Pensions Sector

Keynote Address by Gabriel Bernardino, Chairman of EIOPA, at the 18th Handelsblatt Annual Conference on “Occupational Pensions” in Berlin.
Gabriel Bernardino | Supervisory framework | Sustainability

Capital Markets Union and the Future of European Pensions

Speech by Gabriel Bernardino, Chairman of EIOPA, at Better Finance International Conference in Brussels.
Sustainability | Gabriel Bernardino

Enhancing occupational pensions: Germany could lead the way

Speech by Gabriel Bernardino, Chairman, at the Handelsblatt Conference in Berlin.
Risk assessment | Supervision | Gabriel Bernardino

Globally under Pressure?

Speech by Gabriel Bernardino, Chairman of EIOPA, at the 4th Conference on Global Insurance Supervision in Frankfurt.
Sustainability | Gabriel Bernardino

Topical developments on pensions: an EIOPA perspective

Speech by Gabriel Bernardino, Chairman of EIOPA, at the 9th European Pension Funds Congress in Frankfurt am Main.
Sustainability | Gabriel Bernardino

EIOPA’s vision on private pensions - Enhanced sustainability, strong governance and full transparency

Speech by Gabriel Bernardino, Chairman of EIOPA, at the NAPF Conference in Liverpool.
Risk assessment | Gabriel Bernardino

CROs – How to balance twin roles

Speech by Gabriel Bernardino, Chairman of EIOPA, at the CRO Forum 10th Anniversary Event in Bologna.
Risk assessment | Gabriel Bernardino

Infrastructure projects – improved data is needed to support the reassessment of risk

Article by Gabriel Bernardino, Chairman of EIOPA, in the Eurofi Newsletter.