EIOPA, as one of the three European Supervisory Authorities (ESAs), has the mission of supporting the stability of the financial system and protecting consumers in the fields of insurance and occupational pensions. The insurance market with assets worth around two-thirds of the EU GDP is a significant part of the financial market in Europe. Its failure could negatively affect the real economy and consumers’ well-being. We examined whether EIOPA made an effective contribution to supervision, supervisory convergence and financial stability. For the latter we focused on the 2016 insurance stress test.
We concluded that EIOPA has made good use of a wide range of tools, although their design and follow-up should be improved. We found a number of systematic challenges with regard to supervision of cross-border businesses and internal models. They need to be addressed by EIOPA itself, by national supervisors and by legislators, particularly in the context of the ongoing ESAs’ review.
Special report No 29/2018: EIOPA made an important contribution to supervision and stability in the insurance sector, but significant challenges remain