08/03/2021 | Press release | Distributed by Public on 08/04/2021 10:45
The European Insurance and Occupational Pensions Authority (EIOPA) published today its annual report on supervisory activities in 2020. The report highlights activities and achievements from the year, covering both prudential and conduct of business supervision.
In 2020, the coronavirus pandemic led to huge social disruption and unprecedented economic challenges. EIOPA therefore adapted its priorities following the onset of the pandemic to support both industry and supervisors in tackling different challenges and maintain supervisory convergence and financial stability. This included carrying out extraordinary activities (for example supervisory statements to deal with the new risks and situations) and re-prioritising some other planned tasks.
Supervisory activities in 2020 covered a variety of areas, including Solvency II related issues such as calculation of technical provisions, the further development of supervisory activities in the area of conduct risk, and the analysis of innovative technologies and their role in improving supervisory practices.
At the request of the European Commission, EIOPA finalised its advice on the 2020 review of Solvency II. The measures proposed in the advice aim at keeping the regime fit for purpose by introducing a balanced update of the regulatory framework, reflecting better the economic situation and completing the missing elements from the regulatory toolbox.
During 2020, EIOPA has continued its prudential oversight work and strengthened its oversight activities on conduct of business, initiating bilateral visits to national competent authorities (NCAs). Furthermore, EIOPA continued work to increase supervisory convergence in the area of internal models.
Sound supervision of cross border activities remains essential to build trust with consumers and demonstrate a well-functioning internal market. Cooperation platforms are a key tool in cross-border supervision and, by the end of 2020, six cooperation platforms (involving of 21 NCAs) were operational, resulting in a number of actions taken in good time to minimise detriment to consumers. For some of the platforms the intensive cooperation is continuing into 2021.
In 2021, EIOPA will complete the priorities stemming from the previous plans, while also continuing to monitor and mitigate the impact of Covid-19. EIOPA will focus is supervisory work on activities set out in its Supervisory Convergence Plan.