EIOPA publishes Supervisory Convergence Plan for 2023

Written by Adam Cadle

02/02/2023

The European Insurance and Occupational Pensions Authority (EIOPA) has published its Supervisory Convergence Plan for 2023, which outlines EIOPA’s intentions to build a common supervisory culture and consistent supervisory practices in the EU.

Its plan sets out the authority’s three main priorities to enhance convergence over the course of 2023.

These are the implementation of the common supervisory culture and development of supervisory convergence tools, the risks to the internal market and the level playing field, and the supervision of emerging risks.

Some new areas of priority were also identified, such as the supervision of ESG risks in the pensions sector.

EIOPA conducted work to establish and address supervisory concerns arising from the recent development of multi-sponsor IORP providers.

It noted that while multi-sponsor IORP providers have an important role to play in providing efficient, low-cost solutions and consolidation, they also bring new supervisory questions regarding governance and risk management.

Following engagement with national competent authorities (NCAs) supervising multi-sponsor IORP providers, EIOPA will further develop the IORPs’ Supervisory Handbook, starting with a chapter on the supervision of multi-sponsor IORP providers and subsequently on risk-based supervision.

EIOPA will continue working on the risk assessment framework and application of proportionality, the supervisory assessments of conduct risks and approach to sustainability risks, and the development of digital tools for supervisors.

It will also continue focusing on supervisory convergence by promoting benchmark studies on internal models and addressing the lack of convergence in the way NCAs treat reinsurance undertakings.

On emerging risks, EIOPA stated that one of its priorities is the implementation of the new regulation on digital operational resilience, where it believes supervisory convergence will be key.

Finally, EIOPA will develop supervisory convergence tools to support NCAs in the performance of the digital business model analysis.

“By building up a strong and fair supervisory culture, the plan should also contribute to better protection of policyholders and equal treatment of consumers across the EU internal market,” the authority stated.

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