The European Insurance and Occupational Pensions Authority (EIOPA) has presented its strategic vision for 2024-2026. With an ever-changing landscape of challenges, risks, and opportunities, EIOPA is committed to addressing the uncertainties arising from transformative times. The primary objective is to ensure that the insurance and pensions sectors remain a reliable source of value for policyholders, beneficiaries, businesses, and the broader European Union economy.
How and Why the Law is Changing
EIOPA has laid down six strategic priorities to guide its actions during this period. These priorities encompass sustainable finance, digital transformation, supervision, policy, risks to financial sustainability, and governance. The sustainable finance focus extends to integrating environmental, social, and corporate governance (ESG) considerations into the prudential and conduct frameworks for insurers and pension funds. Furthermore, climate-related risks and impacts will be a core area of attention. Biodiversity and social risks will also be analysed, responding to mandates arising from Solvency II negotiations.
In the realm of cybersecurity, EIOPA will take significant steps to support consumers, the market, and the supervisory community during the digital transformation. Initiatives like the Digital Operational Resilience (DORA), the Artificial Intelligence Act, and the European Single Access Point (ESAP) will be pivotal in this journey.
To enhance the quality and effectiveness of supervision, particularly for cross-border business, EIOPA will continue to establish common benchmarks for supervisory practices. This includes revising supervisory convergence materials in line with the Solvency II regulation. The focus remains on areas such as IORPs (Institutions for Occupational Retirement Provision) and conduct of business.
The authorities will also ensure technically sound prudential and conduct of business policies while maintaining the integrity of the insurance regulatory framework, especially as the Solvency II review progresses.
Consequences and Changes to the Law
EIOPA aims to proactively identify, assess, monitor, and report on risks and vulnerabilities in the insurance and occupational pensions sector. This step is crucial for maintaining the industry's stability and protecting the interests of policyholders and beneficiaries. Additionally, good governance is a key aspect of EIOPA's strategy. The organisation will strengthen its corporate culture, emphasising internal and external cooperation to ensure effective governance.
In this transformative period, EIOPA will focus on enhancing its human capital through effective recruitment, management, and development of its workforce, making it an even more attractive employer.
As of 2024, EIOPA is preparing to take on new responsibilities while addressing resource constraints, all while maintaining a cost-effective operational model. This strategic vision demonstrates EIOPA's commitment to navigating evolving challenges and harnessing opportunities in the insurance and pensions sectors to deliver value to all stakeholders.
The insurance and pensions sectors are poised to undergo significant transformation, with EIOPA leading the way in ensuring their continued value and relevance. As Cyprus remains an integral part of this economic landscape, the changes set forth by EIOPA will undoubtedly influence and reinvigorate the insurance industry within the country. Embracing sustainability and digital transformation will not only drive efficiency but also cater to the growing demands of policyholders and beneficiaries. With increased focus on risk assessment, cyber readiness, and governance, Cyprus is poised to see a significant transformation in its insurance sector, ensuring it remains competitive and future-ready in the evolving landscape of the European insurance market.
By Eva Manolova