The European Insurance and Occupational Pensions Authority (EIOPA) published today its Supervisory Convergence Plan for 2022.
In line with EIOPA’s mandate to build a common supervisory culture and consistent supervisory practices in the European Union, the Supervisory Convergence Plan identifies EIOPA’s priorities to enhance supervisory convergence over the course of 2022.
The priorities revolve around the following three main areas:
- common supervisory culture and tools
- risks to the internal market and level playing field
- supervision of emerging risks
In the area of practical implementation of the common supervisory culture, EIOPA will, amongst other priorities, continue working on proportionality, supervisory assessments of conduct risks, environmental, social and governance (ESG) issues and group supervision.
With regards to risks to the internal market and the level playing field, which may lead to supervisory arbitrage, EIOPA will focus on supervisory convergence tools in the area of calculating technical provisions and benchmark studies on Internal Models. In addition, EIOPA intends to address inconsistencies in the way National Competent Authorities treat reinsurance undertakings with the head office in third countries.
The priorities related to the supervision of emerging risks include the implementation of the new framework on digital operational resilience (DORA), the supervision of run-off undertakings as well as the development of a supervisory convergence tool on cyber underwriting, with a particular focus on undertakings’ risk management of silent (non-affirmative) cyber risk.
EIOPA also added some new priorities for 2022 in the plan covering areas such as exclusions from insurance cover and the lack of clarify in insurance contracts revealed by the COVID-19 pandemic, the supervision of captives and issues related to digital transformation.
Further information about EIOPA’s supervisory convergence tools, including the full list of all priorities is available in the plan.