EIOPA defines annually its priorities to strengthen supervision in Europe in the Supervisory Convergence Plan.
The priority areas included in the plan are identified following a risk-based approach and based on the following criteria:
- Areas with relevant impact on policyholders and financial stability;
- Areas that can affect fairness, the level playing field or the proper functioning of the internal market through the existence of possible supervisory arbitrage;
- Key areas of supervision where practices substantially differ.
To achieve its priorities in the area of supervisory convergence, EIOPA developed - depending on the issue and risks at stake different tools.
Finally, EIOPA publishes annually a Report on supervisory activities describing the most important deliverables achieved. In the field of supervisory convergence, it is important to remain flexible and alert to respond to emerging and future challenges. For this reason, the annual report includes also the review of the priorities in the field of supervisory convergence.
The key priorities for 2019 are:
- Practical implementation of the key characteristics of the common supervisory culture and further development of supervisory tools;
- Risks to the internal market and to the level playing field which may lead to supervisory arbitrage;
- Supervision of emerging risks.
At the same time, new areas have been identified for each priority:
|PRACTICAL IMPLEMENTATION OF THE COMMON SUPERVISORY CULTURE AND THE FURTHER DEVELOPMENT OF SUPERVISORY TOOLS||RISK TO THE INTERNAL MARKET AND THE LEVEL PLAYING FIELD WHICH MAY LEAD TO SUPERVISORY ARBITRAGE||SUPERVISION OF EMERGING RISKS|
|Risk assessment framework and application of proportionality||Supervision of calculation of technical provisions||Supervision of data and IT-related risks, including cyber risk|
|Common benchmarks for the supervision of internal models||Cross-border business||InsurTech|
|Supervisory assessment of conduct risks, incl. conduct of business chapters for the Supervisory Handbook (new)||Assessment of internal model outcomes||Supervisory assessment of run-off undertakings (new)|
|Group supervision||Authorisations, fitness and propriety||Brexit|
|Remuneration policies||Consistent implementation of the European Union – United States Covered Agreement||Interbank offer rate (IBOR) transition (new)|
|Supervisory assessment of captives (new)||Use of risk-mitigation techniques and new financial engineering products for capital relief (new)|
|Follow-up on recommendation to EIOPA from the peer review on propriety (new)|