EIOPA seeks feedback on draft technical advice regarding minimum common standards for insurance guarantee schemes across the EU

The European Insurance and Occupational Pensions Authority launched today a public consultation on its draft technical advice on minimum common standards for insurance guarantee schemes (IGS) in the European Union. The advice, which includes a detailed technical annex, comes in response to a request from the European Commission and supplements the IGS-related aspects outlined in EIOPA’s 2020 Opinion on the review of Solvency II with targeted proposals.

Insurance policyholders across the European Union face differing levels of protection when insurers fail. This is explained by a patchwork of national schemes that vary widely in scope and coverage—as well as the absence of such schemes altogether in some countries. The resulting heterogeneity across member states has led to significantly different outcomes for policyholders after failures, particularly in cross-border cases.

Although the Solvency II and IRRD frameworks play a key role in reducing the likelihood and impact of insurance failures on consumers and financial stability, they cannot prevent all failures. Moreover, they do not address the unequal protection of policyholders in the EU’s Single Market when failures happen.

Policy proposals for minimum common standards

It is against this backdrop that EIOPA sets out its draft technical advice. The proposals opened for consultation today address four main policy areas:

• general questions about the impact of minimum harmonized IGSs
• operational functioning of IGSs
• conditions for effective funding of IGSs and
• interaction between the IRRD and harmonized IGSs.

For each of these areas EIOPA analysed several policy options and, where possible, presented a preferred option. 

In EIOPA’s view, the proposed measures for minimum harmonisation represent a balanced, proportionate and effective approach – in line with broader efforts to simplify regulation and reduce administrative burdens. Their implementation would strengthen policyholder protection across the EU and build consumer trust in financial services at a time when retail investment is more essential than ever to ensure a dignified retirement. The Harmonisation of IGSs would send a strong signal to consumers, while supporting the Single Market and the Savings and Investments Union and ensuring operational readiness under the IRRD. 

This targeted harmonisation would set common standards across the EU where they matter the most – such as regarding coverage, triggers, funding and coordination – while preserving sufficient national flexibility where needed, notably in claim submission deadlines and institutional arrangements.

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Background

EIOPA is to provide its final technical advice to the European Commission by 31 August 2026. Article 98 of the Insurance Recovery and Resolution Directive requires the Commission, after having consulted EIOPA, to submit a report to the European Parliament and the Council on the suitability of establishing minimum common standards for insurance guarantee schemes within the European Union.