Today, the European Insurance and Pensions Authority (EIOPA) published the results of its peer review on the cooperation between supervisory authorities in the European Union (EU) on the supervision of cross-border activities of insurance undertakings. Increased cross-border activity in the EU internal market makes EIOPA’s Decision on the collaboration of the insurance supervisory authorities (Decision) a fundamental tool for reinforcing collaboration and building a common European supervisory culture.
The peer review focuses on how national supervisory authorities approach insurance cross-border activities, how they exchange supervisory information and collaborate, how data is stored and practices regarding portfolio transfers. Following the conclusions, EIOPA issues 60 recommended actions and four best practices, all addressed to the national supervisory authorities. The recommendations address those main areas:
- Information needed in case of authorisation of a new undertaking in case of previous authorisations sought in other Member States or where the applicant intends to operate exclusively (or almost exclusively) in another Member State;
- Information exchange and procedures in case of notification process for activities such as freedom of establishment and freedom to provide services;
- Improvements and updates of the data storage tools aiming to keep readily available all necessary information to share with other authorities concerning cross-border activity.
The recommendations are focused on closing the gaps that may have a negative impact on the effectiveness of the supervisory process and are necessary to further improve cooperation among national supervisory authorities. EIOPA will closely monitor the implementation of the recommendations and will also follow-up with own specific actions.
About peer reviews
The role of peer reviews is to assess the application of existing practices by the national supervisory authorities, such as the implementation of directives, regulations, technical standards, EIOPA guidelines and recommendations, or supervisory practices. Peer reviews should also stimulate dialogue within and between supervisory authorities and facilitate sharing of best practices. EIOPA’s objective is to achieve consistent supervisory practices with the ultimate goal to protect policyholders.
EIOPA conducts peer reviews in accordance with Article 30 of EIOPA regulation. See the current two-year peer review work plan.