EIOPA statement for ECON public hearing on the role of pension funds and insurers in capital markets on 8 April 2026

Madam Chair, 

Honourable Members of the European Parliament, 

Thank you for the opportunity to be present before you today to address the important role that insurers and pension funds have in achieving the objective of the Savings and Investments Union and thus enhancing Europe’s growth, competitiveness – and autonomy. Achieving this is especially relevant in a world that is increasingly volatile, as the geopolitical context generates a larger array of risks. 

There is significant untapped potential in the EU to achieve this goal, and one key strategy – as identified by the European Commission – involves creating a more effective investment culture in Europe, including by redirecting retail savings locked in underperforming bank accounts to investment products. This could fuel the growth of Europe’s economy and the development of capital markets, but most importantly, can generate additional income for citizens. 

From EIOPA’s perspective, it is paramount to address persisting pensions and protection gaps, which can negatively impact the quality of life of European citizens, and may also generate adverse spillover effects on public finances and economic growth. However, enhancing retail investment participation requires a sound regulatory and supervisory framework to build the necessary trust and to secure good outcomes for citizens. Additional elements that can further increase this trust are clear, transparent and relevant information on costs, performance and expected outcomes.

EIOPA welcomes the European Commission’s proposed reviews of the IORP II Directive and the PEPP Regulation as a valuable opportunity to contribute to achieving the SIU objectives. EIOPA’s Eurobarometer research shows that only 20% of respondents had an occupational pension scheme, while only 18% of them had a personal pension product. Yet 56% of consumers expressed trust in their employer to design a product that will ensure an adequate retirement outcome. 

EIOPA believes the proposed legislative package for the review of IORP II brings important elements such as improving IORPs’ efficiency by increasing investment flexibility of DC schemes in a prudent principle-based approach, building trust by enhanced governance standards and focus on value to members and beneficiaries. In particular, we welcome consolidating powers and resources of national competent authorities in order for them to carry out more efficient supervision. Therefore, in our opinion, these elements should be prioritised and preserved in the legal text. This is particularly relevant as in pensions, Europe operates in a minimum harmonisation regime with a low level of supervisory convergence. The more initiatives such as auto-enrolment in occupational pensions happen in a successful way, the more we hope to see increased asset pooling and expanded cross-border arrangements, and the more we need a strong and skilled supervisory framework in place. 

Simple, transparent and reliable pension products that offer value for money and that are suitable for long-term savings can increase the trust in the products and incentivise participation in personal pensions. And the proposal on the PEPP review aims to capitalise on these elements. 

More generally, policymakers should also consider adapting pension systems to evolving labour market realities and provide options for the self-employed and for people who frequently change jobs or have career gaps. In the same regard, good pension system design must address the persisting gender pensions gap. 

Robust regulation and supervision lie at the heart of EIOPA’s mission to protect public interest and are central in establishing trust and confidence in Europe’s insurance and pensions sectors. Well-capitalised pension funds and insurers can better withstand financial stress and fulfil their promises as well as continue to provide new cover to citizens and companies. Risk-based capital requirements, as we already have in Solvency II for the insurance sector, ensure an efficient allocation of capital and resources across the sector. Furthermore, the new legislative pensions package proposed by the European Commission focuses as well on improving transparency, collaboration and cooperation of supervisors with their market members and among themselves, within the EEA. Effective regulation further enhances market transparency and efficiency, allowing for better risk management and reduced transaction costs. This includes simplifying reporting requirements, as EIOPA has just proposed for Solvency II, and ensuring that market information on the sectors is clear. 

In closing, EIOPA stands ready to support the European Parliament to work on these key legislative proposals and to bring them to real actions that will help to offer our citizens the possibility for much needed enhanced retirement outcomes and protection against old age poverty and can contribute to a more stable, efficient and competitive financial and economic system.