Annual report 2018.
Date: 2019-06-29
Institutions: European Insurance and Occupational Pensions Authority
Subjects: European Insurance and Occupational Pensions Authority, activity report, credit institution, financial control, financial situation, financial solvency, insurance, insurance company, insurance law, pension fund

ISSN 2467-3706

ANNUAL REPORT 2018

https://eiopa.europa.eu/

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ISBN 978-92-9473-154-8
ISBN 978-92-9473-155-5

doi:10.2854/900652
doi:10.2854/521173

ISSN 2467-3706

EI-AA-19-001-EN-N
EI-AA-19-001-EN-C

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ANNUAL REPORT 2018

CONTENTS

ABBREVIATIONS 

ANALYSIS AND ASSESSMENT OF THE CONSOLIDATED ANNUAL  
ACTIVITY REPORT 2018 BY THE BOARD OF SUPERVISORS 

FOREWORD BY THE CHAIRMAN 

FOREWORD BY THE EXECUTIVE DIRECTOR 

EXECUTIVE SUMMARY 

INTRODUCTION 

ACHIEVEMENTS IN 2018 

Strengthening the protection of consumers 

Strengthening supervisory convergence 

Sound regulation in an evolving landscape 

Insurance 

Pensions 

Preserving financial stability 

Crisis prevention 

Preparing for Brexit 

Cross-cutting themes 

InsurTech 

Sustainable finance 

A responsible, competent and professional organisation 

Engaging with stakeholders 

Joint Committee 

Looking ahead 

MANAGEMENT 

Human Resources Management 

Assessment of audit results during the reporting year   

Follow up of audit plans, audits and recommendations 

INTERNAL CONTROL SYSTEM 

Risk Management 

Compliance and effectiveness of Internal Control Standards 

Management Assurance 

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EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYDECLARATION OF ASSURANCE 

ANNEX I: CORE BUSINESS STATISTICS 

Product and Services Overview 

Allocation of Human Resources 

Key Performance Indicators 

ANNEX II: EIOPA’S GOVERNANCE AND MANAGEMENT 

Board of Supervisors 

Management Board 

ANNEX III: STEERING COMMITTEES,  PROJECT GROUPS,  
EXPERT NETWORKS AND WORKING GROUPS 

ANNEX IV: STAKEHOLDER GROUPS 

ANNEX V: ORGANIGRAM 2018 

ANNEX VI: ESTABLISHMENT PLAN 2017 (TEMPORARY AGENTS) AND  
FIGURES FOR CONTRACT AGENTS AND  SECONDED NATIONAL EXPERTS 

ANNEX VII: ENTRY LEVEL FOR EACH TYPE OF POST 

ANNEX VIII: STATISTICS FROM JOB SCREENING/ 
BENCHMARKING EXERCISE 

ANNEX IX: ANNUAL ACCOUNTS 

Financial Performance in 2018 

Budget Result 

Statement of financial performance 

Balance Sheet – Assets 

Balance Sheet – Liabilities 

Cash flow Table (Indirect Method) 

Statement of Changes in Net Assets 

ANNEX X: ACCESS TO DOCUMENTS REPORT 2018 

ANNEX XI: OPINIONS AND REPORTS PUBLISHED IN 2017 

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ANNUAL REPORT 2018ABBREVIATIONS

AAE 

Actuarial Association of Europe

AIP 

Annual implementation plan

AMICE  Association of Mutual Insurers and Insurance Cooperatives in Europe 

AMSB   Administrative management or supervisory board

ATD 

Access to documents

AWP 

Annual work programme

BFI 

Berufsförderungsinstitut/vocational training institute

BIPAR 

Bureau international des producteurs d’assurances et de réassurances/
European Federation of Insurance Intermediaries

BoS 

Board of Supervisors

CDD 

Customer due diligence

CSDB 

Centralised securities database

DB 

Defined benefit

DGB 

Deutscher Gewerkschaftsbund/German Trade Union Confederation

DNB 

De Nederlandsche Bank

DVA 

Dynamic volatility adjustment

EBA 

ECA 

European Banking Authority

European Court of Auditors

ECAI 

External credit-assessment institutions

ECB 

EEA 

European Central Bank

European Economic Area

EFTA 

European Free Trade Association

EIOPA 

European Insurance and Occupational Pensions Authority

EMIR 

European market infrastructure regulation

ESAs 

European Supervisory Authorities

ESFS 

European System of Financial Supervisors

ESG 

Environmental, social and governance

ESMA 

European Securities and Markets Authority

ESRB 

European Systemic Risk Board

EU 

European Union

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EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYFCA 

Financial Conduct Authority (UK)

FoS 

FSB 

FSC 

FX 

HR 

Freedom of services/freedom to provide service

Financial Stability Board

Financial Supervision Commission

Foreign exchange

Human resources

IAIS 

International Association of Insurance Supervisors

IAS 

ICS 

Internal Audit Service

Internal Control Standards

IDD 

Insurance Distribution Directive

IORP(s) 

Institution(s) for occupational retirement provision

IPID 

Insurance product information document

IRSG 

Insurance and Reinsurance Stakeholder Group

IT 

ITS 

KPI 

MB 

Information technology

Implementing technical standards

Key performance indicators

Management Board

MoU 

Memorandum of understanding

NCA 

National competent authority

NGO 

Non-governmental organisation

OPSG  Occupational Pensions Stakeholder Group

OTC 

Over the counter

PEPP 

Pan-European personal pension product

PG(s) 

Project group(s)

POG 

Product oversight and governance

PPI 

RFR 

RTS 

SC 

Payment protection insurance

Risk-free interest rates

Regulatory technical standards

Steering committees

SCR 

Solvency capital requirement

SRP  

Supervisory review process

UFR 

Ultimate forward rate

UK 

US  

VA 

United Kingdom

United States

Volatility adjustment

5

ANNUAL REPORT 2018ANALYSIS AND ASSESSMENT OF 
THE CONSOLIDATED ANNUAL 
ACTIVITY REPORT 2018 BY THE 
BOARD OF SUPERVISORS

EIOPA’s  Board  of  Supervisors  (BoS)  takes  note  of  the  Consolidated  Annual  Activity 
Report (CAAR) 2018, submitted by the Authorising Officer in accordance with Article 
47(1) of the Financial Regulation (FR) applicable to EIOPA. Analysing and assessing the 
CAAR 2018 BoS has made the following observations: 

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The  report  contains  a  comprehensive  and  thorough  account  of  the  activities  car-
ried out by EIOPA in the implementation of its mandate and programme of work 
during 2018. EIOPA has met its obligations under Article 47(1), providing a detailed 
account of the results achieved in relation to the objectives set in the Annual Work 
Programme 2018, financial and management information, as well as the risks related 
to the organisational activities and measures taken to address them.

BoS acknowledges the continued challenges EIOPA faces in terms of its constrained 
resources to manage a demanding workload and welcomes EIOPA’s efforts to prior-
itize in order to deal with this challenging situation. BoS also welcomes EIOPA’s con-
tinued effort to re-allocate its resources from establishing regulation to overseeing 
its consistent implementation, recognising the need to maintain sufficient levels of 
staff in regulatory roles based on ongoing demand for this work.

BoS welcomes the way in which EIOPA followed up on the discussions of the BoS 
Strategy  Day,  particularly  with  respect  to  the  themes  of  Sustainable  Finance  and 
supervisory convergence. 

BoS welcomes the significant contribution EIOPA has made in the field of consumer 
protection with its further implementation of the strategy for conduct of business 
supervision,  including  conduct-focused  visits  to  national  competent  authorities 
(NCAs), and the Authority’s work to ensure the consistent implementation the In-
surance Distribution Directive.

BoS welcomes EIOPA’s continued contribution to building an effective and consist-
ent  level  of  supervision  across  the  EU.  In  particular,  BoS  welcomes  the  renewed 
focus  on  cross-border  business  and  the  further  roll  out  of  EIOPA’s  cross-border 
cooperation platforms to enhance stronger and more timely cooperation between 
NCAs in relevant cases. BoS supports EIOPA’s supervisory convergence plans and 
acknowledges  the  comprehensive  set  of  objectives  and  activities  established  in 
these plans to achieve supervisory convergence. 

6

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITY ›

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BoS welcomes EIOPA’s continued preparations for the review of Solvency II includ-
ing the review of the Solvency Capital Requirement in 2018.  BoS also welcomes the 
further advancement of a single framework for the reporting of occupational pen-
sion information and recognises the benefits for monitoring the pensions market.

BoS,  acknowledging  the  multiple  and  potentially  damaging  consequences  of  the 
UK’s  withdrawal  from  the  EU,  welcomes  EIOPA’s  opinions  addressed  to  national 
competent  authorities  on  the  issues  related  to  the  solvency  position  of  insurers 
and information to be disclosed to customers on the impact of Brexit. BoS also wel-
comes EIOPA’s own internal contingency planning to ensure it as an organisation is 
ready to deal with the implications of Brexit.

BoS welcomes EIOPA’s continued monitoring and analysis of vulnerabilities in the 
market and financial stability risks. In particular, BoS acknowledges EIOPA’s efforts 
to publish its quarterly risk dashboard and half-yearly financial stability report, along 
with increasing the availability of statistics on the market in 2018. BoS also welcomes 
EIOPA’s insurance stress test, which focused on the key risks the sector faces.

BoS notes the positive results of successful management of the Authority’s tasks 
and resources, indicated by the extremely high rate of delivery of products and ser-
vices as planned or within a minor delay, as well as the targets met in terms of EI-
OPA’s key performance indicators on management of its financial resources.

BoS  notes  EIOPA’s  diligent  response  to  findings  from  the  European  Court  of  Au-
ditors,  the  Internal  Audit  Service  and  the  Authority’s  Quality  Control  Committee 
and  supports  EIOPA’s  efforts  in  its  transparent  implementation  of  the  respective 
recommendations. BoS welcomes in particular, EIOPA’s efforts to address the rec-
ommendations of the European Court of Auditor’s (ECA) Special report No 29/2018. 
ECA  concluded  that  “EIOPA  made  an  important  contribution  to  supervision  and 
stability  in  the  insurance  sector”,  however,  that  EIOPA  faced  limitations  in  terms 
of the architecture of the supervision system and scarcity of resources. As a result, 
much still needs to be done by EIOPA, legislators and NCAs to achieve supervisory 
convergence, i.e. a level playing field for insurance businesses operating across EU 
Member States and for their customers.

 ›

BoS considers that EIOPA is running effectively and efficiently and is delivering the 
expected products and services to high standards of quality.

Gabriel Bernardino

Chair of the Board of Supervisors

7

ANNUAL REPORT 2018GABRIEL BERNARDINO

8

FOREWORD BY THE CHAIRMAN

It gives me great pleasure to present our activities and achievements from 2018. Through-
out the year, we remained committed to delivering our mandate to better protect consum-
ers, through high quality and consistent supervision and safeguarding financial stability.

We  did  so  in  an  environment  of  constant  change.  As  such,  we  had  to  remain  alert  to 
fast-paced developments in the area of technology, the growth in cyber risks, increasing 
volumes  of  cross-border  business  and  a  stronger  spotlight  on  sustainable  finance.  As 
with other areas of our work, our role is to consider the implications of these issues for 
regulators, supervisors, providers and consumers. This means that we must be prepared 
to review our regulations, our areas of intervention and the tools.  

A case in point is the review of Solvency II. In 2018, we completed the first stage of our 
work. The next stage of work, undertaken in 2019, will again be an evolution rather than 
revolution, and will again serve to ensure that this landmark regulation better supports 
the stakeholders it serves.

Our 2018/19 supervisory convergence plan has, at its core, tasks related to the imple-
mentation of a common supervisory culture and development of new supervisory tools. 
It  also  has  the  identification  of  risks  to  the  internal  market,  such  as  issues  related  to 
cross-border business, and emerging risks as areas of priority. In both cases, EIOPA con-
tinues to play a leading role in setting out a pan-European approach to supervision: one 
that is not only forward-looking, preventive and proactive, but also challenging, sceptical, 
engaged and conclusive. 

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYIdentifying trends, risks and vulnerabilities is an essential element of our financial stabil-
ity work. In 2018, we published key reports related to cyber insurance, the causes and 
early identification of failure or near misses in insurance, the development of a macro-
prudential framework for insurance, and our first annual insurance overview. In our in-
surance stress test we included a natural catastrophe scenario as well as a questionnaire 
related to cyber insurance.

In  the  field  of  consumer  protection,  we  updated  our  conduct  of  business  strategy  to 
reflect changes to the regulatory landscape and developed a framework for conduct risk 
assessment. Both of these activities will help supervisors to identify areas of consumer 
detriment and mitigate associated risks at an earlier stage.  We also took steps to ensure 
that consumers remain protected from risks associated with the United Kingdom’s deci-
sion to leave the European Union.

Looking ahead, we must be prepared for both challenges and opportunities. In this re-
gard, I am firmly convinced that EIOPA will play a vital role in ensuring that the insurance 
and pensions sectors remain robust and resilient in the face of challenges in particular, 
from digital technology, cyber risk and climate change. These challenges will also bring 
opportunities and it is imperative that, as supervisors, we enable consumers to benefit 
from innovation while remaining protected. To that end, we will continue to contribute 
to the European Commission’s financial services agenda and in particular the FinTech and 
sustainable finance action plans.

The introduction of the pan-European personal pension product is a great opportunity 
for consumers to have a new portable retirement savings option. We look forward to 
seeing this become a reality and playing our part in creating a quality and trusted product 
that will benefit so many European consumers.

We are grateful to the outgoing Members of the European Parliament for their support 
of our work. I would also like to thank our Board of Supervisors and Management Board 
for their commitment and constructive engagement over the past year. The same is true 
of members of our two stakeholder groups and colleagues from national competent au-
thorities and fellow European Supervisory Authorities. Our work is much richer because 
of your involvement. 

We carry out our work so that consumers can carry out their lives safe in the knowledge 
that they are protected and can rely on the policies that they have purchased and the 
pension funds they have paid into. Our role is to take on the challenges and seize the 
opportunities that our work brings to continue to improve the lives of consumers in the 
field of insurance and pensions. It is a role that we are eager to fulfil.

9

ANNUAL REPORT 2018FAUSTO PARENTE

FOREWORD BY THE  
EXECUTIVE DIRECTOR

Delivering  our  strategic  objectives  and  fulfilling  our  mandate  requires  us  to  have 
high-quality and effective systems, processes and, above all, staff in place. In 2018, we 
continued our efforts to make use of technology to create a safe, secure and satisfying 
working environment for staff.

A resilient information technology infrastructure is essential to our work, in particular for 
the collection of data and in 2018, the Authority managed 14 Solvency II data collection 
deadlines  effectively.  In  this  context,  EIOPA  upgraded  its  central  repository  and  data 
analysis platforms.  In 2018, EIOPA also commenced a project to migrate its data centre, 
to be concluded in 2019.

Facilitating cooperation is important to ensure that we can work effectively both with-
in  the  organisation  and  with  colleagues  in  national  competent  authorities  and  as  a 
means  to  foster  efficiency,  EIOPA  sought  to  increase  the  use  of  e-tools  where  pos-
sible. A key achievement in 2018 was the successful introduction of e-workflows for 
finance and budget. In addition, a project to implement a newer e-HR system is now 
in progress. Electronic tools and new technology have also to good use to improve in-
ternal cooperation and communication. The implementation of a new documentation 
management  systems  was  completed  in  2018,  as  was  the  implementation  of  a  new 
videoconferencing capability. 

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EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYAs a pan-European supervisor, a key objective is to foster a common approach to super-
vision. Training and sharing of good practice is fundamental to our approach and in 2018, 
more than 1,500 people attended one of our many events. In addition, we welcomed over 
400 people to our annual conference, which touched on important aspects of our work 
including supervisory convergence, cyber insurance and sustainable finance. Our work 
must also be visible to be effective. Our website is our main communication channel and 
to present our work in a more up-to-date and user-friendly manner, in 2018, we initiated 
a project to upgrade our. The website, to be launched in 2020, will provide users with 
greater functionality and incorporate an improved question and answer tool.

Where possible, we aim to consult with a wide selection of stakeholders to inform our 
work. In 2018, we renewed our stakeholder groups and in our selection we achieved bet-
ter gender and geographic balance as well as a stronger representation from consumers 
and from beneficiaries.

Attracting and retaining the right staff is also essential to our ability to deliver our man-
date. In 2018, we continued with activities to build the capacity of our staff through the 
development of specific competencies and through a variety of learning and develop-
ment opportunities. Our staff engagement survey, conducted in 2018, indicated a high 
level of engagement of staff. 

In terms of management of resources, EIOPA conducts its operations in full compliance 
with EU regulations, working in an open and transparent manner. In 2018, the Authority’s 
operating budget, as approved by the Board Supervisors was EUR 25 million and through 
effective budget management, EIOPA had achieved an implementation rate for commit-
ments of 100%. 

As part of our accountability, we are the subject of annual audits by the European Court 
of Auditors, the European Commission’s Internal Audit Service and our own internal au-
ditor. In 2018, we welcomed the conclusion of the European Court of Auditors that we 
make an important contribution to supervision and financial stability in the insurance 
sector. 

Our goal is to remain an efficient and effective organisation as we continue to address 
our four strategic objectives, and the corresponding tasks resulting from our rigorous 
planning process. As in previous years, we will remain flexible to respond to new priori-
ties, as they emerge. Looking ahead, this will include putting in place the outcomes of the 
review of the European Supervisory Authorities, as well as remaining ready to respond 
to new priorities.  

In conclusion, I would like to thank EIOPA’s staff, the Management Board and Board of 
Supervisors for all their work throughout the year. I look forward to a fruitful cooperation 
in the coming year as we continue our work to build a stronger insurance and pensions 
sector in Europe, for the benefit of beneficiaries and policyholders. 

11

ANNUAL REPORT 2018EXECUTIVE SUMMARY

In  2018,  the  European  Insurance  and  Occupational  Pen-
sions  Authority  (EIOPA)  continued  to  play  an  essential 
role in strengthening supervision of the European insur-
ance and pensions sectors.

The  European  Court  of  Auditors  who  concluded  that 
EIOPA makes an ‘important contribution to a common 
supervisory culture and financial stability in the insur-
ance sector' evidenced this.

EIOPA worked closely with national authorities, European 
institutions and other stakeholders to fulfil the strategic 
objectives set out in its work programme for 2018.

STRENGTHENING CONSUMER 
PROTECTION

In 2018, EIOPA reviewed and updated its conduct of busi-
ness  strategy.  The  updated  strategy  reflects  changes  to 
the  regulatory  landscape,  in  particular  since  the  imple-
mentation of the Insurance Distribution Directive (IDD), 
and places renewed emphasis on driving supervisory con-
vergence  and  further  enhancing  market  monitoring  and 
conduct  risk  assessment,  to  build  practical  and  propor-
tionate supervisory capacities across Europe. 

EIOPA  also  continued  to  identify  those  insurance  and 
pension trends that affect consumers. The increasing use 
of digital technology is by far the most persistent trend 
and EIOPA will continue its work in this area. 

In its framework for conduct risk assessment, EIOPA iden-
tified the drivers of conduct risk throughout all stages of 
the product lifecycle and the implications of these in the 
emergence of consumer detriment.

In 2018, EIOPA continued its work to ensure the consistent 
implementation  of  the  Insurance  Distribution  Directive 
through the development of guidelines, draft regulatory 
technical standards and an evaluation of the structure of 
the insurance intermediaries market in Europe.

STRENGTHENING SUPERVISORY 
CONVERGENCE

Contributing to a high-level of effective and consistent su-
pervision is at the heart of EIOPA’s mandate. A consistent 
approach to supervision is becoming increasingly impor-
tant given the growing amount of cross-border business.

In  April  2018,  EIOPA  published  its  supervisory  conver-
gence plan for 2018 and 2019, with a focus on the imple-
mentation of Solvency II. Priority areas include the devel-
opment  of  common  supervisory  tools  and  benchmarks, 
enhancing  the  supervision  of  cross-border  business  and 
the supervision of emerging risks.

Throughout  the  year,  EIOPA  carried  out  a  number  of 
activities  in  the  field  of  oversight  and  supervisory  con-
vergence.  These  included  conducting  and  concluding 
peer  reviews,  participating  in  colleges  of  supervisors  to 
improve  supervision  of  cross-border  groups  and  provid-
ing tailored support and feedback to national competent 
authorities  (NCAs).  EIOPA  also  organised  a  number  of 
training activities to help build capacity among national 
supervisors.

EIOPA  continued  to  make  use  of  its  cross-border  coop-
eration  platforms  to  enhance  stronger  and  more  timely 
cooperation  between  NCAs,  thereby  enabling  a  quick-
er  identification  and  assessment  of  risks  connected  to 
cross-border  business.  Through  these  platforms,  EIOPA 
is able to provide concrete supervisory recommendations 
and steer coordinated corrective actions where necessary. 

In the field of internal models, EIOPA published its first 
comparative study on market and credit risk modelling. 

While  EIOPA  continues  to  evolve  into  a  supervisory-fo-
cused  organisation,  the  Authority  continued  to  provide 
its expertise on issues related to regulation. 

In insurance, a significant piece of work related to the re-
view of Solvency II. EIOPA provided advice to the Euro-
pean Commission on the review of the Solvency Capital 
Requirement based on an in-depth analysis of 29 different 

12

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYelements.  The  advice  focused  on  increasing  proportion-
ality,  removing  unjustified  constraints  to  financing  and 
removing technical inconsistencies.  

In the field of pensions, EIOPA defined a single framework 
for the reporting of occupational pension information to 
facilitate reporting processes and enable better monitor-
ing of market developments and analysis of the occupa-
tional pensions market. 

In  the  context  of  the  Institutions  for  Occupational  Re-
tirement  Provision  Directive  (IORP  II),  EIOPA  published 
a  decision,  replacing  the  Budapest  Protocol,  outlining 
how NCAs can cooperate and exchange information on 
cross-border business issues. 

EIOPA also concluded its research into the best ways for 
IORP  providers  to  provide  information  to  consumers  in 
the form of a pension benefit statement. EIOPA will con-
tinue this work in 2019.

PRESERVING FINANCIAL STABILITY

In  2018,  EIOPA  worked  to  identify  trends,  potential  risks 
and vulnerabilities that could have a negative effect on the 
pension and insurance sectors across Europe.

In this context, EIOPA conducted a stress test of the Euro-
pean insurance sector, assessing three severe but plausi-
ble scenarios, including a natural catastrophe scenario. In 
total, 42 European (re)insurance groups participated rep-
resenting a market coverage of around 75% based on total 
consolidated  assets.  The  results  confirmed  that,  overall, 
there is significant sensitivity to market shocks combined 
with specific shocks relevant for the European insurance 
sector. To increase transparency in order to reinforce mar-
ket discipline and in line with recommendations from the 
European  Court  of  Auditors,  participating  groups  were 
requested to disclose individual results. On release of the 
results,  four  participating  groups  consented  to  publica-
tion of their own results.

The increased availability of Solvency II data enabled EIOPA 
to increase coverage of its statistics and in June, the Author-
ity published further insight into the assets of solo (re)insur-
ance undertakings at country level. EIOPA also published its 
first  annual  European  Insurance  Overview,  providing  rele-
vant and easily accessible data at European level.

To broaden the debate on issues related to financial sta-
bility  in  the  insurance  and  pensions  sector,  EIOPA  con-
ducted  research  and  published  findings  on  a  number  of 
relevant topics. This included a series of publications on 
the development of a macroprudential framework for in-
surance; an analysis of the causes and early identification 
of  failure or near misses in insurance, and a study on cy-
ber insurance. 

Regular  publications  included  the  risk  dashboard  (on  a 
quarterly basis) and the Financial Stability Report (in June 
and December).

CROSS-CUTTING THEMES

EIOPA conducted activities related to digital technology, 
or InsurTech, as well as sustainable finance in 2018. Both 
of  these  areas  are  considered  cross-cutting  themes  as 
they require expertise from across the organization. For 
both,  EIOPA  engaged  in  close  dialogue  with  a  range  of 
stakeholders and market participants, including  through 
roundtables and surveys.

Following a cross-sectorial review on the use of Big Data 
(published in March 2018 by the Joint Committee of the 
European Supervisory Authorities), EIOPA released a call 
for evidence on the use of Big Data, in particular in the 
motor  and  health  insurance  sectors.  This  evidence  was 
used to provide an analysis on the potential benefits and 
risks of Big Data, with the results published in a thematic 
review in April 2019.

EIOPA published its sustainable finance action plan, which 
addresses  the  need  for  a  cross-sectoral  and  cross-pillar 
approach to sustainable finance. Actions include provid-
ing support to the European Commission in the develop-
ment of a taxonomy.

BREXIT

Throughout  the  year,  EIOPA  paid  close  attention  to  de-
velopments  regarding  the  United  Kingdom’s  decision  to 
leave the European Union. With a view to minimising risk 
to business and to consumers, in particular to avoid inter-
ruption of service, EIOPA issued two opinions to national 
competent  authorities.  These  covered  issues  related  to 
the  solvency  position  of  insurers  and  information  to  be 
disclosed to customers on the impact of Brexit.

13

ANNUAL REPORT 2018A RESPONSIBLE, COMPETENT AND PROFES-
SIONAL ORGANIZATION

ference was ‘Insurance and pensions: Securing the future’ 
and  covered  issues  related  to  supervisory  convergence, 
sustainable finance and cyber insurance.

Over the past year, EIOPA has continued to evolve its or-
ganisational structure to ensure that it operates as effec-
tively and efficiently as possible. 

EIOPA also regularly engages with the European institu-
tions, including the European Parliament and the Europe-
an Court of Auditors.

STAKEHOLDER ENGAGEMENT

LOOKING AHEAD

Where  possible,  EIOPA  seeks  the  input  of  a  wide  range 
of stakeholders to inform its work, in particular through 
its  two  stakeholder  groups  (Insurance  and  Reinsurance 
Stakeholder Group, or IRSG, and Occupational Pensions 
Stakeholder  Group,  or  OPSG),  but  also  through  events, 
surveys and consultations.

In  2018,  following  an  open  call,  EIOPA  appointed  new 
members to both of its stakeholder groups. In its selec-
tion, EIOPA aimed for balance in terms of gender, geog-
raphy  and  different  types  of  stakeholder.  In  particular, 
EIOPA strengthened representation from consumers and 
from beneficiaries.

EIOPA held its annual conference in November 2018, at-
tracting  some  400  participants.  The  theme  of  the  con-

In 2019, EIOPA will build on its work as a core pillar of the 
European supervisory framework.

The organisation remains ready for change and ready to 
take on any new tasks, notably those associated with the 
review of the European Supervisory Authorities and the 
outcome  of  trilogue  discussions  on  the  pan-European 
personal pension product. 

EIOPA will also continue to monitor closely issues related 
to Brexit.

In 2019, as in previous years, EIOPA remains committed 
to fulfilling its mandate to strengthen supervisory conver-
gence in the insurance and pension sector across Europe, 
benefitting the economy, businesses and consumers. 

14

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYINTRODUCTION

Insurance and pensions fulfil an important role in society. 
When they function well, they take on risks and contrib-
ute to economic growth and financial stability, ultimately 
bringing greater financial security to citizens. With assets 
worth 70% of EU Gross Domestic Product (GDP),(1) the 
EU  insurance  sector  is  a  significant  part  of  the  financial 
sector. With liabilities comprising one third of European 
households’  wealth,  consumers  depend  on  parts  of  the 
insurance  sector  for  their  security  and  future  income. 
Equally, occupational pensions are crucial to ensure that 
older people are protected from the risk of poverty in re-
tirement. With assets worth around 24% of EU GDP (2) – 
and much more in some countries – pension fund assets 
are growing rapidly and increasingly provide a source of 
investment to financial markets.

The  European  Insurance  and  Occupational  Pensions 
Authority  (EIOPA  or  the  Authority)  is  a  decentralised 
agency of the European Union (EU) with the overarch-
ing mission to contribute to the stability and effective-
ness of the financial system for the benefit of Europe’s 
economy, businesses and citizens. Its main tasks are to 
enhance supervisory convergence, strengthen consum-
er protection and preserve financial stability in the field 
of insurance and pensions.

Achieving  these  goals  depends  on  close  cooperation 
with national competent authorities (NCAs), as well as 
regular consultation with stakeholders, notably consum-
er organisations and industry representatives, to ensure 
that the Authority’s work meets the need of the people 
that it serves.

(1)  Data from Q3 2018, source: https://eiopa.europa.eu/financial-stabil-
ity-crisis-prevention/financial-stability/statistics

(2)  Data  from  2017,  source:  https://eiopa.europa.eu/financial-stabili-
ty-crisis-prevention/financial-stability/statistics

EIOPA’s  areas  of  action  and  annual  priorities  are  estab-
lished through a rigorous planning process. Its programme 
of work and budget are adopted by EIOPA’s Board of Su-
pervisors and approved by the European Parliament and 
the European Council. 

This report details the main achievements of the Authori-
ty’s achievements in 2018.  

INFORMATION BOX

STRATEGIC PRIORITIES

The Authority’s strategic priorities for 2018 were to:

 ›

 ›

 ›

 ›

Strengthen the protection of consumers

Improve  the  functioning  of  the  EU  internal 
market in the field of pensions and insurance

Strengthen  the  financial  stability  of  the  in-
surance and occupational pension sectors

Be a responsible, competent and profession-
al organisation.

15

ANNUAL REPORT 2018ACHIEVEMENTS IN 2018

STRENGTHENING THE 
PROTECTION OF CONSUMERS

In  the  field  of  consumer  protection,  EIOPA  aims  to  en-
hance the confidence of consumers in insurance and pen-
sion providers and products. This is done through ensur-
ing that regulation is in place to protect consumers from 
possible  harm  that  could  arise  from,  for  example,  poor 
disclosures to consumers and poor selling practices.

Actions in this field range from monitoring the implemen-
tation  of  regulation,  such  as  the  Insurance  Distribution 
Directive  (IDD),  providing  advice  to  the  European  Com-
mission and ensuring that consumers have access to fair, 
clear,  and  not  misleading  information  so  that  they  can 
make informed choices about insurance products.

AN UPDATED CONDUCT OF BUSINESS 
STRATEGY

Conduct of business supervision is an integral part of the 
consumer  protection  mandate  and  in  April  2018  EIOPA 
published  its  updated  conduct  of  business  supervision 
strategy. Through this strategy, EIOPA will support NCAs 
with tools and expertise to ensure a high degree of con-
sistency and quality of conduct of business supervision. 
The  updated  strategy  maintains  existing  tools,  such  as 
thematic reviews, trends reports, enhanced market mon-
itoring and retail risk indicators, and includes new activ-
ities  to  drive  practical  supervisory  convergence.  These 
include  country  visits  to  NCAs  and  supporting  the  ex-
change of information between NCAs.

CONSUMER TRENDS

Understanding  trends 
identifying 
emerging risks and areas of potential harm for consumers.

is  fundamental 

in 

In  December  2018,  EIOPA  published  its  seventh  annual 
report into trends in the European insurance and pension 
sectors that affect consumers. The report highlighted the 
continued  increase  of  technology-led  innovations.  Such 
innovations mostly concern the non-life sector, in particu-
lar the most common products such as motor, household, 
accident and health insurance. Innovations in terms of dis-
tribution channels and usage of telematics, have been the 
dominant trends in motor insurance products. In health 
insurance, however, Big Data has not yet had such a sys-
temic penetration. This is likely to change going forward 
as it could offer reduced costs and help in identifying, as-
sessing and insuring new types of risks. At the same time, 
however, it could lead to the potential exclusion of some 
consumer  segments,  price-discrimination,  and  competi-
tion  issues.  With  consumers  generating  more  and  more 
data and using connected devices, cyber risk concerns are 
increasing. Adequate cyber risk insurance products could 
address these protection needs.

16

‹  Read the Seventh 
Consumer Trends 
Report in full here: 
https://europa.
eu/!WY79Pq 

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYINFORMATION BOX

FRAMEWORK FOR CONDUCT RISK ASSESSMENT

In  2018,  EIOPA’s  Board  of  Supervisors  approved  a 
framework  for  assessing  conduct  risk  through  the 
product  lifecycle  (published  in  February  2019).  The 
framework identifies drivers of conduct risk through-
out all stages of the product lifecycle and the impli-
cations of these in the emergence of consumer det-
riment.  It  sets  a  common  supervisory  language  and 
hence ensures more supervisory convergence. 

In  particular,  the  framework  is  intended  to  support 
NCAs  identifying  conduct  and  consumer  protection 
risks,  both  sufficiently  early  and  clearly  to  allow  for 
effective  conduct  supervision,  further  enhancing 
market monitoring and conduct risk assessment and 
driving  forward  practical  supervisory  convergence. 
Ultimately, it should facilitate EIOPA and NCAs to be-
come more proactive and intervene earlier, focusing 
on the drivers of consumer detriment. 

The framework covers the following areas of risk:

 ›

Business  model  and  management  risks  –  risks 
arising  from  how  insurers  structure,  drive  and 
manage  their  business  and  from  relationships 
with other entities in the value-chain;

 › Manufacturing  risks  –  risks  arising  from  how 
products  are  manufactured  by  insurers  before 
being  marketed  and  how  they  are  targeted  to 
customers;

 ›

Delivery risks – risks arising from how products 
are brought to market and from the interaction 
between customers and insurers or intermediar-
ies at the point of sale;

 ›

Product  management  risks  –  risks  arising  after 
the  sale  of  the  insurance  product  relating  to 
how products are managed and how insurers or 
intermediaries interact with and service custom-
ers until all obligations under the contract have 
ceased.

In  the  future,  EIOPA  will  conduct  further  work  on 
linking the identified conduct risks with the tools for 
assessing  their  impact  and  supervisory  importance, 
leveraging readily available data as far as possible.

‹  Read the report in 
full here: https://
europa.eu/!WY79Pq 

17

ANNUAL REPORT 2018CONSISTENT IMPLEMENTATION OF THE 
INSURANCE DISTRIBUTION DIRECTIVE 
(IDD)

Over the past year, EIOPA has contributed to the consist-
ent implementation of the IDD. In January 2018, following 
a consultation with stakeholders, EIOPA published guide-
lines  on  complex  insurance-based  investment  products 
(IBIPs) with the goal of minimising risks to consumers that 
could arise from mis-selling of products. The Guidelines 
include  criteria  to  identify  product  features  difficult  for 
the customer to understand and set a framework to allow 
for  'execution-only'  sales  of  products,  where  an  assess-
ment of the suitability or appropriateness of an insurance 
based  investment  product  (IBIP)  for  the  customer  does 
not need to be carried out by the insurance intermediary 
or insurance undertaking as part of the sales process. 

EIOPA also developed draft Regulatory Technical Stand-
ards adapting base Euro amounts for personal indemnity 
insurance and financial capacity for insurance interme-
diaries. 

In  July  2018,  EIOPA  published  the  first  set  of  Questions 
&  Answers  (Q&As)  providing  practical  guidance  on  the 
application of the Insurance Distribution Directive (IDD) 
and its implementing regulations and thereby promoting 
supervisory  convergence.  The  Q&As  relate  to  the  prod-
uct  oversight  and  governance  requirements  distribution 
of IBIPs, as well as conflicts of interest and the suitability 
and appropriateness assessments. EIOPA will continue to 
address and subsequently publish the answers to further 
questions.

As foreseen in IDD, EIOPA published in December 2018 
a report on the evaluation of the structure of insurance 
intermediaries  markets  in  Europe.  This  report  provides 
an overview of the intermediaries markets in Europe up 
to 31 December 2017, relating to data for the period from 
2013 to 2017. The evaluation confirms that the European 
insurance intermediaries market is characterised by a very 
wide diversity of local distribution channels and different 
definitions adopted at the national level. 

In accordance with the IDD, EIOPA is initiating prepara-
tory work on a report on the application of the IDD. The 
report will gather more detailed information on the expe-
riences of NCAs in applying the Directive. In this context, 
EIOPA will identify possible ways to improve the quality 
and  comparability  of  data  on  insurance  intermediaries 
across the European markets. 

SUPERVISING CROSS-BORDER BUSINESS

In  2018,  EIOPA  worked  on  a  number  of  activities  to  re-
inforce cooperation between NCAs in the supervision of 
cross-border business.

 à Decision on the cooperation of NCAs with regard 
to the supervision of cross-border insurance 
distribution activities of insurance undertakings 
and intermediaries

This Decision entered into force on 1 October 2018, 
replacing the former Luxembourg Protocol. The deci-
sion stems from the IDD regulatory framework and 
the recent supervisory experience with cross-border 
insurance  distribution.  It  enhances  the  exchange 
of  all  relevant  information,  enabling  NCAs  to  fulfil 
their  supervisory  tasks  and  to  protect  customer  in-
terests. The Decision is an important step to ensure 
well-functioning,  risk-based  and  preventive  supervi-
sion  of  the  insurance  market  throughout  the  Euro-
pean Union.

 à Opinion on non-life cross border insurance 
business of a long-term nature and its 
supervision

This  Opinion,  published  in  December  2018,  aims 
to  ensure  the  appropriate  application  of  the  legal 
requirements and consistent supervisory practices 
with  regards  to  the  calculation  of  technical  provi-
sions and quantitative information on non-life long-
term business with distinctive features or a high de-
gree of local specificities. It is designed to address 
specific evidence that not all market players prop-
erly  and  prudently  calculate  technical  provisions 
appropriately, thereby jeopardising policyholders in 
the host country.

Long-term  non-life  insurance  business  operating 
across  borders  is  typically  uncertain.  Such  business 
requires  both,  the  knowledge  of  the  local  market 
specificities and the actuarial skills for the calculation 
of the technical provisions and the management of 
the activity. Experience has shown that these activi-
ties attract players that do not possess the required 
knowledge and skills, potentially leading to localised 
under-pricing  and  under-reserving  to  the  detriment 
of policyholders.

In particular, following some real cases (e.g. under-re-
serving)  which  called  for  an  harmonised  action,  EI-
OPA communicated some expectations in relation to 

18

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYthe complexity of long-term non-life business carried 
out  by  undertakings  by  the  freedom  of  establish-
ment  or  freedom  to  provide  services  (cross-border 
business).

Achieving  supervisory  convergence  requires  close  co-
operation with NCAs to develop a common superviso-
ry  culture  that  underpins  convergence  of  supervisory 
practices,  including  a  common  interpretation  of  the 
laws and regulations. 

STRENGTHENING SUPERVISORY 
CONVERGENCE

EIOPA actively promotes a common supervisory culture 
and consistent supervisory practices across Europe to en-
sure a high, effective and consistent level of supervision, 
safeguarding a similar level of protection for policyhold-
ers and beneficiaries. 

EIOPA addresses supervisory convergence from different 
perspectives, depending on the issue and risks at stake. 
In particular, EIOPA uses the following building blocks to 
underpin its work:

 ›

 ›

Establishing  common  benchmarks  for  supervisory 
practices

Reviewing existing practices by NCAs and the mar-
ket and

 › Making use of EIOPA’s own oversight work.

IN FOCUS

SUPERVISORY CONVERGENCE PLAN

In  2018,  EIOPA  set  out  its  superviso-
ry convergence plan for the next two 
years. The plan focuses on the imple-
mentation of Solvency II and conduct 
of business supervision with three pri-
ority areas:

 ›

 ›

Developing common supervisory 
tools  and  benchmarks,  including 
the  application  of  proportion-
ality,  the  supervision  of  internal 
models  and  the  supervisory  as-
sessment of conduct risks;

Enhancing  the  supervision  of 
cross-border  business,  focusing 
on  the  calculation  of  technical 
provisions  and  their  sufficiency, 
the  detection  of  unsustainable 
business  models  and  the  super-
visory  assessment  of  fitness  and 
propriety; and

 ›

Supervising  emerging  risks,  in-
cluding the supervisory practices 
on  IT  resilience  and  cyber  risks, 
the usage of Big Data and Brexit.

  Read more about 2018 

supervisory activities here: 
https://europa.eu/!nf79Gw

19

ANNUAL REPORT 2018Figure 1 – Supervisory convergence activities in 2018

Implementation of the key 
characteristics

Risk to the internal market and to the 
level playing field

Supervision of  
emerging risks

 ›

Seminars;

 › New chapters of the 

Supervisory Handbook;

 ›

Supervisory assessment 
of conduct risk through-
out the product life cycle.

 › Opinion on technical provision on 
cross-border context: long-term 
claims profile;

 ›

 ›

Internal models consistency studies;

Peer review on supervisory assess-
ment of propriety of administrative, 
management or supervisory board 
members and qualifying shareholders.

 › Opinions on Brexit;

 ›

 ›

Regulatory sandbox and 
innovation hubs report;

COM FinTech Action 
Plan reports on ICT 
security and governance 
and cyber resilience 
testing.

HIGH, EFFECTIVE AND CONSISTENT LEVEL OF SUPERVISION

Accordingly, EIOPA has developed a set of tools to sup-
port  supervisory  convergence  and  to  build  the  capacity 
of national supervisors to conduct effective supervision. 
This includes a range of training activities for supervisors.

DRIVING THE QUALITY, CONSISTENCY 
AND CONVERGENCE OF SUPERVISION OF 
INTERNAL MODELS

Internal  models  approval  requires  higher  supervisory 
judgment  than  standard  formula  regimes,  even  though 
NCAs base their decisions on analytical criteria and reg-
ulatory  requirements  and  share  information  within  col-
leges. Differences in supervisory practices regarding the 
approval of internal models can impair the level playing 
field  and  policyholder  protection.  EIOPA  therefore  con-
tinuously promotes supervisory convergence in the area 
of internal models. EIOPA conducted the following activi-
ties related to internal models in 2018:

 ›

 ›

 ›

 ›

Development of the ‘Supervisory work plan on inter-
nal models’ and ‘Internal model validation standards’ 
chapters of the Supervisory Handbook 

Publication  of  the  first  set  of  internal  model  statis-
tics,  providing  national  supervisors  with  a  compre-
hensive overview of internal model users in Europe

A ‘Non-life comparative study’ which assists supervi-
sors in assessing the calibration of non-life risk mod-
elling for specific lines of business

A  ‘Market  and  credit  risk  comparative  study’  with 
the objective of comparing risk charges for a selec-
tion of asset portfolios to be used as a tool for the 
supervisory  review  of  internal  models.  Additionally, 
the  study  aims  to  highlight  the  causes  of  potential 
differences  between  internal  models  by  analysing 
risk charges for individual asset classes such as fixed 
income or equity.  

20

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYFigure 2 – Oversight activities in 2018

1

Follow-up on the  
balance sheet review  
in Bulgaria

11

46

Active participation 
in cross-border 
colleges and specific 
internal model 
college meetings

1

Bilateral engagement 
with national supervisory 
authorities, including:
4  Assessments of the 
implementation of EIOPA’s opinion 
on Brexit related to establishment

Technical assistance to a 
national supervisory authority 
via SSRS project funded by 
European Commission, where 
EIOPA plays the coordinating 
and supportive role

9

Active cooperation 
platforms

2

Joint on-site 
inspections in  
Austria and Ireland

SUPERVISING THE EU US COVERED 
AGREEMENT

eas of recommended actions were disclosed. During the 
course of the year, three peer reviews were concluded on:

In 2018, the project to monitor the consistent implemen-
tation of the EU US Bilateral Agreement started. The pro-
ject is part of the Supervisory Convergence Plan 2018/19 
and  focusses  on  reinsurance  and  collaterals  as  well  as 
group supervision.

In autumn, a comprehensive survey was launched to collect 
and  analyse  member’s  current  supervisory  practices  and 
regulation and whether amendments are envisaged, which 
was confirmed to be the case in some Member States.

PEER REVIEWS

 ›

 ›

 ›

The principle of proportionality when assessing key 
functions in insurance undertakings

The  supervisory  assessment  of  propriety  of  admin-
istrative, management and supervisory board mem-
bers and qualifying shareholders

The  application  of  the  Prudent  Person  Rule  for  the 
supervision  of  occupational  pension  funds  (pub-
lished March 2019)

PARTICIPATION IN COLLEGES OF 
SUPERVISORS

To foster convergence and strengthen consistency in the 
outcome of supervisory actions, EIOPA conducts peer re-
views on specific activities of NCAs, based on an agreed 
methodology and with experts from NCAs acting as re-
viewers. The results of the peer reviews are documented 
and  published.  For  the  first  time  in  2018,  the  names  of 
national competent authorities and the corresponding ar-

Participation in colleges of supervisors enables EIOPA to 
identify  inconsistencies  in  supervisory  approaches  and 
to provide group supervisors with recommendations and 
technical  support.  EIOPA  uses  a  risk-based  approach  to 
determine its engagement with colleges and in 2018 ac-
tively engaged with 46 colleges. This engagement repre-
sents more than 50% of registered cross-border groups.

21

ANNUAL REPORT 2018COOPERATION PLATFORMS

Established  in  2017,  cooperation  platforms  continue  to 
prove  a  valuable  tool  to  minimise  risks  associated  with 
cross-border  failure.  The  implementation  of  these  plat-
forms is an example of how EIOPA has been able to better 
steer cooperation between national supervisors, support 
their assessment of the impact of cross-border activities 
and  identify  preventive  measures.  For  each  platform, 
EIOPA has provided concrete supervisory recommenda-
tions to the home supervisor. 

By  the  close  of  2018,  nine  cooperation  platforms  were 
operational, involving 19 national competent authorities. 
Cooperation platforms are active as long as the risks iden-
tified might negatively affect policyholders. In most cas-
es, the platforms provided a useful forum for cooperation 
and information exchange. In two cases, the supervisory 
intervention led to the liquidation of undertakings.

ENGAGING WITH NATIONAL SUPERVISORS

In the context of its oversight work, EIOPA regularly en-
gages with national supervisors.  

 à Structured bilateral engagements

Through structured bilateral engagements, EIOPA is 
able to assess supervisory practices at national level 
and define areas where action is needed to further 
improve  the  supervisory  framework  and  superviso-
ry  practices.  In  2018,  EIOPA  carried  out  11  bilateral 
engagements,  including  follow  up  to  engagements 
from previous years. 

 à Joint on-site inspections

In  2018,  EIOPA  participated  in  joint  on-site  inspec-
tions led by Austria and Ireland. 

 à Technical assistance

EIOPA  provides  on-going  technical  assistance  to  na-
tional competent authorities to support and strength-
en  their  supervisory  capacity,  in  particular  where 
weaknesses have been identified during bilateral visits 
or to strengthen the Capital Markets Union.

In  2018,  at  the  request  of  the  European  Commis-
sion, EIOPA finalised the one-year technical support 
programme  to  the  Romanian  national  supervisory 
authority. This work involved the development of a 

comprehensive  handbook  providing  detailed  guid-
ance  on  the  supervisory  review  process  under  Sol-
vency  II,  a  risk  assessment  framework,  supervisory 
processes and tools.

MEDIATING AND INVESTIGATING 
BREACHES OF LAW

In line with its mandate, EIOPA is empowered to resolve 
disputes between national authorities through mediation. 
In July 2018, EIOPA issued a mediation opinion regarding 
the determination of the correct insurance class for statu-
tory risks in France. Both NCAs involved agreed with the 
conclusions of the Mediation Panel.

EIOPA is also empowered to investigate alleged breaches 
or non-application of Union law. In 2018 EIOPA conduct-
ed three investigations: one at the request of a financial 
institution and two on the Authority’s own initiative. The 
investigations  covered  both  pension  and  insurance  sec-
tors  and  were  related  to  the  cross-border  activity  of  in-
stitutions  for  occupational  retirement  provision,  market 
access  of  third  country  insurers  in  the  European  Union,  
and the recovery of insurance undertakings. Most of the 
cases were closed prior to reaching the stage of adoption 
of  recommendations  by  the  BoS  due  to  actions  already 
taken by the NCA.

TRAINING & EVENTS

The  2018  Training  &  Events  Programme  included  26  ac-
tivities: 14 sectoral seminars or workshops, 2 online we-
binars, 1 cross-sectoral seminar (in the following together 
referred to as training activities) and 9 public events. The 
ESAs Joint Consumer Protection Day was organised by EI-
OPA this year and attracted 215 participants.

EIOPA  continues  to  attract  a  very  high  number  of  par-
ticipants to its training activities and stakeholders to its 
public events.

The  majority  of  training  and  events  were  assessed  and 
evaluated  through  online  feedback  forms  completed  by 
the participants. The average response rate in 2018 was 
37%. Results show that on average the seminars are high-
ly valued among participants. EIOPA received 3.62 points 
out of 4 for organisation in general and 3.29 out of 4 for 
content in general (average of excellent [4], good [3], fair 
[2] and poor [1]).

22

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYOverview training and events provided to NCAs in 2018

No.

Date

Title

Location

Attendees

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

15-16 Feb

Advanced Seminar on Quantitative Techniques in Financial 
Stability

21-Mar

IORP Stress Test closing event

12-Apr

16-Apr

Public Event on Reporting and Disclosure

2018 Insurance Stress Test workshop on consultation with 
stakeholders

17-18 Apr

SRP Handbook - Pillar I Seminar

14-May

2018 Insurance Stress Test Launch event

25-May

Online webinar on 2018 Insurance Stress Test

29-May

Workshop with NCAs on practical implementation of 
PRIIPs 

01-Jun

InsurTech Roundtable

20-Jun

Roundtable on Sustainability

21-22 June 

SRP Handbook - Pillar II Seminar

22-Jun

26-Jun

11-Jul

Joint ESAs Consumer Protection Day

Solvency II public disclosures – what you need to know

Online webinar on 2018 Insurance Stress Test: Data 
submission and validation

20-21 Sept 

Risk-based supervision seminar

18-19 Oct

Supervisory Skills Training 

25-26 Oct

Recovery and Resolution

30-31 Oct 

The use of data for risk based supervision: Sharing 
knowledge, experience and tooling

EIOPA

EIOPA

EIOPA

EIOPA

EIOPA

EIOPA

online

EIOPA

EIOPA

EIOPA

EIOPA

Lisbon

EIOPA

online

Albania

EIOPA

Netherlands

Slovenia

5-6 Nov

Workshop with NCAs on practical implementation of IDD 

EIOPA

10-Nov

EU-US Project public event

Luxembourg

16-Nov

Public Event on Reporting and Disclosure

EIOPA

57

37

29

27

43

57

41

57

39

57

58

215

32

35

70

18

183

69

63

84

59

20-Nov

8th Annual EIOPA Conference

Frankfurt

408

22-Nov

2018 Insurance Stress Test Public Event 

29-Nov

Loss absorbing capacity of deferred taxes

06-Dec

Workshop on Risk-based COB supervision

14-Dec

Illiquid Liabilities Roundtable 

EIOPA

EIOPA

EIOPA

EIOPA

51

51

41

30

 Total number of attendees:

1 911

23

ANNUAL REPORT 2018 
 
Trainings and events from 2011 to 2018

s
e
i
t
i
v
i
t
c
a

f
o
r
e
b
m
u
N

30

25

20

15

10

5

0

  2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018

  Number of activities 

Number of attendees 

s
t
n
a
p
i
c
i
t
r
a
p
f
o
r
e
b
m
u
N

3 000

2 500

2 000

1 500

1 000

500

0

SOUND REGULATION IN AN 
EVOLVING LANDSCAPE

Regulation is only effective for as long as it remains rele-
vant. While EIOPA is evolving into a supervisory-focused 
organisation, it pays close attention to how regulation is 
applied and how effective it remains, with a view to rein-
forcing cross-sectoral consistency and improving fairness 
and  transparency  and  with  a  focus  on  better  and  smart 
regulation.

INSURANCE

SOLVENCY II REVIEW

Since  the  successful  implementation  of  Solvency  II  Di-
rective in 2016, EIOPA played an important role in mon-
itoring  its  consistent  implementation  and  during  2018 
was able to provide valuable input into preparations for 
its review. 

EIOPA provided advice to the European Commission on 
the  review  of  the  Solvency  Capital  Requirement  based 
on  an  in-depth  analysis  of  29  different  elements  of  the 
Standard Formula. The advice focused on increasing pro-
portionality, removing unjustified constraints to financing 
the economy and removing technical inconsistencies. 

EIOPA proposed further simplifications and reduced the 
burden to insurers by:  

 ›

 ›

 ›

 ›

 ›

Further  simplifying  calculations  for  a  number  of 
sub-modules  of  the  Solvency  Capital  Requirement 
(SCR)  such  as  natural,  man-made  and  health  ca-
tastrophes, in particular fire risk and mass accident; 

Simplifying the use of external credit ratings in the 
calculation  of  the  SCR  (an  issue  especially  relevant 
for small insurers); 

Reducing  the  burden  of  the  treatment  of  look-
through to underlying investments; 

Developing  simplifications  in  the  assessment  of 
lapse and counterparty default risks; 

Recommending  the  use  of  undertaking  specific  pa-
rameters for reinsurance stop-loss treaties. 

Furthermore, one of the major technical inconsistencies 
found related to the calculation of interest rate risk, which 
did not capture very low or even negative interest rates.

EIOPA  recommended  to  adjust  the  methodology  using 
a  method  already  adopted  by  internal  model  users  and, 
given  the  material  impact  on  capital  requirements,  sug-
gested to implement it gradually over three years. 

EIOPA also carried out an analysis of the loss-absorbing 
capacity  of  deferred  taxes  practices.  In  face  of  the  evi-

24

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITY 
 
 
 
 
dence of wide diversity, especially concerning the projec-
tion of future profits, EIOPA proposed a set of key princi-
ples that will ensure greater convergence and level playing 
field, while maintaining a certain degree of flexibility.

Finally, EIOPA analysed the treatment and  the evidence 
available  on  unrated  debt  and  unlisted  equity  and  pro-
posed criteria for a more granular treatment, namely with 
the use of financial ratios. 

In  some  areas,  the  analysis  of  recent  developments  did 
not  provide  for  sufficient  reasons  to  change.  This  is,  for 
example, the case of mortality and longevity risks and the 
cost of capital in the calculation of the risk margin. The 
evolution of financial markets does not justify a change in 
the cost of capital: the decrease in interest rates has not 
lead to a decrease in the cost of raising equity.

IN FOCUS

 SOLVENCY II REVIEW

The Solvency II Directive calls for 
a review of the framework to make 
sure that it remains an effective 
tool to manage risk. The following 
aspects have been identified for 
review:

 ›

Long-term guarantee measures 
and measures on equity risk

 › Methods, assumptions and 

standard parameters used when 
calculating the Solvency Capital 
Requirement

 › Member State rules and 

supervisory authority practices 
regarding the calculation of the 
Minimum Capital Requirement

 › Group supervision and capital 

management within a group 
of insuranc or reinsurance 
undertakings

Solvency II review timeline

2018

2019

2020

APR. 2018
EIOPA receives call for 
Information on asset-liabil-
ity management from the 
European Commission

FEB. 2019
EIOPA receives Call for 
Advice on the 2020 review 
from the European Com-
mission

NOV. 2019 - JAN. 2020
Public consultation on draft 
Opinion (covering all advice 
other than on reporting and 
disclosure)

JUN. 2020
Publication of Opinion on 
2020 review

DEC. 2018
Publication of long-term 
guarantees report 2018

Mid JUL.- Mid OCT. 2019
Public consultation on 
draft advice on reporting 
and disclosure

DEC. 2019
Publication of long-term 
guarantees report 2019
EIOPA response to Call for 
Information on asset-liabili-
ty management

DEC. 2020
Publication of long-term 
guarantees report 2020

2021

25

ANNUAL REPORT 2018REPORTING ON THE IMPLEMENTATION OF 
SOLVENCY II  

 à Third annual report on the use of limitations and 
exemptions from reporting under Solvency II  

In 2018, EIOPA published a number of reports related to 
different aspects of Solvency II. 

 à Report on group supervision and capital 

management 

In response to a European Commission’s request for 
information,  EIOPA  submitted  its  Report  on  Group 
Supervision  and  Capital  Management  of  (Re)Insur-
ance  Undertakings  and  specific  topics  related  to 
Freedom to Provide Services (FoS) and Freedom of 
Establishment  (FoE)  under  the  Solvency  II  Direc-
tive. The report concluded that overall the Solvency 
II  Group  supervision  regime  was  operating  satis-
factorily.  The  tools  developed  by  EIOPA  to  further 
strengthen  group  supervision  and  supervision  of 
cross-border  issues  contributed  to  further  conver-
gence  of  practices  of  NCAs’  supervisory  practices. 
The report also highlighted a number of gaps in the 
regulatory framework, including issues related to the 
application of Solvency II requirements for determin-
ing scope of insurance groups subject to Solvency II 
group supervision, the application of certain of these 
provisions governing the calculation of group solven-
cy in particular where several methods are used, the 
definition  and  supervision  of  intra-group  transac-
tions, or the application of governance requirements 
at group level. Further, EIOPA’s report  emphasised 
that  effective  supervision  of  insurance  groups  will 
benefit from a harmonised approach on a number of 
areas, for example, early intervention, recovery and 
resolution and the assessment of group own funds.

 à Second annual report on the use of capital add-

ons under Solvency II

In  December  2018,  EIOPA  published  its  second  an-
nual report on the use of capital add-ons by NCAs 
according to Article 52 of Solvency II. The objective 
was to contribute to a higher degree of supervisory 
convergence in the use of capital add-ons between 
supervisory authorities and to highlight any concerns 
regarding the capital add-ons framework. In general, 
the capital add-on appears to be a good and positive 
measure to adjust the Solvency Capital Requirement 
to the risks of the undertaking, when the application 
of other measures, for example the development of 
an internal model, is not adequate. 

This report, published in December 2018, addresses 
the  proportionality  principle  on  the  reporting  re-
quirements, from which the limitations and exemp-
tions on reporting – as foreseen in Article 35 of the 
Solvency  II  Directive  –  are  just  one  of  the  existing 
proportionality  tools.  Reporting  requirements  also 
reflect  a  natural  embedded  proportionality  and  in 
addition, risk-based thresholds were included in the 
reporting Implementing Technical Standard (ITS).

 à Third annual report on the use and impact of 

long-term guarantee measures and measures on 
equity risk

This is a regular report published in accordance with 
Article 77f(1) of the Solvency II Directive. This year’s 
report also included an analysis on risk management 
aspects in view of the specific requirements for LTG 
measures set out in Article 44 and 45 of the Direc-
tive  as  well  as  an  analysis  of  detailed  features  and 
types of guarantees of products with long-term guar-
antees. This report shows that – as in previous years 
–most  of  the  measures,  in  particular  the  volatility 
adjustment and the transitional measures on techni-
cal provisions are widely used. The average Solvency 
Capital Requirement (SCR) ratio of undertakings us-
ing the voluntary measures is 231 % and would drop 
to 172 % if the measures were not applied. This con-
firms the importance of the measures for the finan-
cial position of (re)insurance undertakings. 

INVESTIGATING ILLIQUID LIABILITIES

The treatment of long-term insurance business remains 
a hotly debated issue. In particular, it has been discussed 
whether  the  risks  of  long-term  insurance  business  and 
the associated investments backing those long-term in-
surance business are adequately reflected. The illiquidity 
characteristics of liabilities may contribute to the ability 
of  insurers  to  mitigate  short-term  volatility  by  holding 
assets  throughout  the  duration  of  the  commitments, 
even in times of market stress. To explore any new ev-
idence on the features of liabilities, especially concern-
ing  their  illiquidity  characteristics,  a  dedicated  EIOPA 
Project Group on illiquid liabilities was set up with the 
following main goals:

 ›

To identify criteria of liquidity characteristics for the 
liabilities and measures for insurers' ability to invest 
over the long term;

26

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYREPORT ON THE PENSION BENEFIT 
STATEMENT: GUIDANCE AND PRINCIPLES-
BASED PRACTICES IMPLEMENTING IORP II

The report presents the outcomes of NCA exchanges of 
views  and  assessments  of  current  practices  for  the  im-
plementation of the IORP II Pensions Benefit Statement 
(PBS)  requirement.  Based  on  this  investigation,  several 
principles  have  been  identified  that  will  facilitate  clear 
understanding and comparability of statements. Two pro-
posals are now in further development: a basic PBS and 
an advanced PBS (containing more detailed information) 
to meet the PBS goals. These proposals will, as far as pos-
sible,  take  account  of  the  behavioral  approach  principle 
be subject to further consumer testing.

DECISION ON THE CROSS-BORDER 
COLLABORATION OF NCAS WITH RESPECT 
TO IORP II DIRECTIVE 

This Decision, published in November 2018, replaces the 
former  Budapest  Protocol  which  had  to  be  revised  as  a 
result  of  the  new  IORP  II  Directive.  The  Decision  intro-
duces new rules to improve the way occupational pension 
funds are governed, to enhance information transparency 
to pension savers and to clarify the procedures for carry-
ing out cross-border transfers and activities. The Decision 
also  describes  different  situations  and  possibilities  for 
NCAs to exchange information about cross-border activ-
ities in relation to the ‘fit and proper’ assessment and the 
outsourcing of key functions, both new provisions of the 
IORP II Directive in addition to the cross-border transfer.

 ›

 ›

To explore the link between the characteristics of lia-
bilities and the management of insurers' assets;

To analyse whether the current treatment in the reg-
ulatory regime appropriately addresses the risks as-
sociated with the long-term nature of the insurance 
business.

Following  a  request  for  information  from  the  European 
Commission  on  asset  and  liability  management,  EIOPA 
launched  a  request  for  feedback  on  illiquid  liabilities  in 
autumn and held a roundtable with interested stakehold-
ers in December to discuss the submitted responses on 
illiquidity measurements and asset liability management 
practices.

ANALYSIS OF THE INTERNATIONAL 
FINANCIAL REPORTING STANDARDS (IFRS) 
17 INSURANCE CONTRACTS

Following  the  publication  of  International  Financial  Re-
porting  Standards  (IFRS)  17  Insurance  Contracts  by  the 
International Accounting Standards Board (IASB), EIOPA 
assessed  its  potential  effects  on  financial  stability  and 
the European public good, on product design, supply and 
demand of insurance contracts, and the practical imple-
mentation in light of the applicable inputs and processes 
for  Solvency  II.  EIOPA  concluded  that  the  introduction 
of  IFRS  17  can  be  described  as  positive  paradigm  shift 
compared to its predecessor IFRS 4 Insurance Contracts, 
bringing increased transparency, comparability and addi-
tional insights on insures’ business models. EIOPA, how-
ever,  noted  a  few  reservations  regarding  concepts  that 
may affect comparability and relevance of IFRS 17 finan-
cial statements. 

PENSIONS

EIOPA  promotes  greater  transparency  in  the  European 
pensions  sector.  In  support  of  this  aim,  EIOPA  is  work-
ing  to  enhance  the  information  available  to  consumers 
and  supporting  pension  providers  by  making  clear  the 
expectations, justifications and decisions linked with the 
information  they  provide,  in  particular  to  prospective 
members,  members  and  beneficiaries  as  laid  out  in  Ar-
ticles  38  –  44  of  the  EU  Directive  on  the  activities  and 
supervision  of  institutions  for  occupational  retirement 
provision (IORP II). 

27

ANNUAL REPORT 2018PRESERVING FINANCIAL 
STABILITY

As part of EIOPA’s mandate to safeguard financial stabil-
ity,  EIOPA  works  to  identify  trends,  potential  risks  and 
vulnerabilities  that  could  have  a  negative  effect  on  the 
pension and insurance sectors across Europe. 

2018 INSURANCE STRESS TEST

EIOPA published the results of its stress test of the Eu-
ropean insurance sector in December 2018. This exercise 
assessed the participating insurers’ resilience to the three 
severe  but  plausible  scenarios:  a  yield  curve  up  shock 
combined with lapse and provisions deficiency shocks; a 
yield curve down shock combined with longevity stress; 
and a series of natural catastrophes. 

In  total,  42  European  (re)insurance  groups  participated 
representing  a  market  coverage  of  around  75  %  based 
on total consolidate assets. EIOPA published for the first 
time  the  post-stress  estimation  of  the  capital  position 
(Solvency Capital Requirement ratio) of major EU (re)in-
surance groups.

Overall, the stress test confirmed the significant sensitiv-
ity  to  market  shocks  combined  with  specific  shocks  rel-
evant  for  the  European  insurance  sector.  On  aggregate, 
the  sector  is  adequately  capitalised  to  absorb  the  pre-
scribed shocks. Participating groups demonstrated a high 
resilience  to  the  series  of  natural  catastrophes  tested, 
showing the importance of the risk transfer mechanisms, 
namely reinsurance, in place.

An  additional  objective  of  this  exercise,  stemming  from 
recommendations from the European Court of Auditors, 
was  to  increase  transparency  in  order  to  reinforce  mar-
ket discipline by requesting the voluntary disclosure of a 
list of individual stress test indicators by the participating 
groups. Since EIOPA does not have the power to impose 
the  disclosure  of  individual  results,  participating  groups 
were asked for their voluntary consent to the publication 
of a list of individual stress test indicators.  Only four of 
the 42 participating groups provided such consent. 

RISK DASHBOARD

EIOPA publishes a risk dashboard on a quarterly basis and 
a financial stability report twice a year. In the December 
2018 report, EIOPA concluded: 

2018 insurance stress test scenarios

SCENARIOS

1

YIELD  
CURVE UP

Addresses an abrupt and sizeable 
repricing of risk premia and a significant 
increase in lapses and claims inflation.  
(Market + lapse and provisions 
deficiency.)

3 scenarios, two 
encompassing a 
combination of market 
and insurance specific 
risks and one natural 
catastrophe scenario.

2

YIELD  
CURVE DOWN

Addresses a prolonged low interest rate 
environment and higher than expected 
increase of average life expectancy.  
(Market and longevity.)

3

NATURAL 
CATASTROPHE

Countries in Europe are hit in quick 
succession by four windstorms, two 
floods and two earthquakes.

28

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYthe  persistent  low  yield  environment  remains  chal-
lenging for insurers and pension funds; 

ENHANCED INFORMATION AND 
STATISTICS

i) 

ii) 

iii) 

the risk of a sudden reassessment of risk premia has 
become more pronounced over recent months amid 
rising political and policy uncertainty; 

interconnectedness  with  banks  and  domestic  sov-
ereigns remains high for European insurers, making 
them susceptible to potential spillovers; 

iv)  some European insurers are significantly exposed in 
their  investment  portfolios  to  climate-related  risks 
and real estate. 

FINANCIAL STABILITY REPORT

EIOPA published two reports on the financial stability of 
the insurance and occupational pensions sector in 2018. 

In general the persistent low yield environment remains 
challenging for both the insurance and pension fund sec-
tor, which continues to put pressure on profitability and 
solvency. However, towards the end of the year, as noted 
in  the  December  report,  the  risk  of  a  sudden  reassess-
ment  of  risk  premia  became  more  pronounced.  This  is 
largely  due  to  rising  political  uncertainty  and  trade  ten-
sions,  concerns  over  debt  sustainability  and  the  gradual 
normalisation of monetary policy. In the short run a sud-
den  increase  in  yields  driven  by  rising  risk  premia  could 
significantly affect the financial and solvency position of 
insurers and pension funds as the investment portfolios 
could suffer large losses only partly offset by lower liabili-
ties. In this regard, the high degree of interconnectedness 
with banks and domestic sovereigns of insurers could lead 
to potential spillovers in case a sudden reassessment of 
risk premia materialise. 

While  overall  the  insurance  sector  remains  adequately 
capitalised, profitability is under increased pressure in the 
current low yield environment. The Solvency Capital Re-
quirement ratio for the median company is 225 % for life 
and 206 % for non-life insurance sector, although signifi-
cant disparities remain across undertakings and countries.

In the European occupational pension fund sector, total 
assets increased for the euro area and cover ratios slightly 
improved. However, the current macroeconomic environ-
ment and ongoing low interest rates continue to pose sig-
nificant challenges to the sector, with the weighted return 
on assets considerably down in 2017.

EIOPA continuously works to improve the availability and 
quality  of  available  information  and  statistics  on  insur-
ance and pensions.

 à Solvency II information

For the insurance sector, EIOPA publishes high-qual-
ity insurance statistics at both solo and group level. 
The  statistics  are  based  on  Solvency  II  information 
from regulatory reporting and their regular publica-
tion  demonstrates  EIOPA’s  commitment  to  trans-
parency.  Over  the  past  year,  through  the  increased 
availability of Solvency II data EIOPA has been able 
to increase the coverage of its statistics. In June 2018, 
for the first time, the Authority published further in-
sight into the assets of solo (re)insurance undertak-
ings at country level.

 à Decision on EIOPA's regular information 

requests towards NCAs regarding provision of 
occupational pensions information

In  April  2018,  the  Authority  published  its  decision 
regarding  the  submission  of  occupational  pension 
information.  The  decision  defined  a  single  frame-
work  for  the  reporting  of  occupational  pension  in-
formation  that  facilitates  reporting  processes.  As  a 
result, EIOPA will receive the information required to 
carry out appropriate monitoring and assessment of 
market  developments,  as  well  as  in-depth  econom-
ic analyses of the occupational pension market. The 
requirements  were  developed  in  close  cooperation 
with the European Central Bank in order to minimise 
the burden on the industry and will apply as of 2019. 

 à Pensions information taxonomy

In November 2018, EIOPA published the eXtensible 
Business  Reporting  Language  (XBRL)  Taxonomy 
applicable  for  reporting  of  information  on  IORPs. 
It provides NCAs with the technical means for the 
submission to EIOPA of harmonised information of 
all  pension  funds  in  the  European  Economic  Area. 
Developed in close collaboration with the European 
Central Bank (ECB), it allows for integrated techni-
cal templates and means to report via a single sub-
mission  both  the  information  required  by  EIOPA 
and the ECB. 

29

ANNUAL REPORT 2018IN FOCUS

PUBLICATION OF EUROPEAN INSURANCE OVERVIEW 2018

At the end of 2018, EIOPA published its first annual 
European  Insurance  Overview  report  as  extension 
of its statistical services. Based on annually reported 
Solvency II information, it ensures that the data has 
a high coverage in all countries and is reported in a 
consistent  manner  across  the  European  Economic 
Area. The report objective is factual and data driven 
and does not contain analysis or policy messages. It 
provides highly-relevant and easily-accessible data at 
the European level.

EUROPEAN INSURANCE 
OVERVIEW 2018
Solo undertakings

Year-end 2017

https://eiopa.europa.eu/

‹  Read the report in 
full here: https://
europa.eu/!qF67kc

CRISIS PREVENTION

In addition to regular financial stability tools, EIOPA un-
dertook a number of additional activities in 2018 related 
to crisis prevention.

 à Development of a macroprudential framework 

for insurance

With  the  aim  of  contributing  to  the  overall  debate 
on systemic risk and macroprudential policy, over the 
last year, EIOPA has published a series of reports that 
extend the debate to the insurance sector and, more 
specifically, the characteristics of that sector. These 
reports cover the following:

 ¡

 ¡

Systemic risk and macroprudential policy in in-
surance;

Solvency II tools with macroprudential impact; 
and

 ¡ Other  potential  macroprudential  tools  and 
measures to enhance the current framework.

As a next step, EIOPA will consult on concrete proposals 
to include macroprudential elements in the upcoming re-
view of Solvency II.

 à Analysis of the causes and early identification of 

failures and near misses in insurance

In  July  2018,  EIOPA  published  ‘Failures  and  near 
misses  in  insurance:  Overview  of  the  causes  and 
early  identification’  as  the  first  in  a  series  aimed  at 
enhancing supervisory knowledge of the prevention 
and management of insurance failures.  The report’s 
findings  are  based  on  information  contained  in  EI-
OPA's database of failures and near misses, covering 
the period from 1999 to 2016, including sample data 
of 180 affected insurance undertakings in 31 Europe-
an countries. 

The report focuses on an examination of the causes 
of failure in insurance, as well as the assessment of 
the reported early identification signals. It also exam-
ines the underlying concepts ‘failure’ and ‘near miss’ 
as well as providing further information on EIOPA’s 
database, established in 2014.  

30

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYIN FOCUS

UNDERSTANDING CYBER RISK 

Increasing digitalisation coupled with a growing num-
ber  of  cyber  incidents  has  made  cyber  risk  a  major 
concern  for  institutions,  individuals  and  financial 
markets,  leading  to  a  growing  demand  for  cyber  in-
surance. 

In  August  2018,  EIOPA  published  its  report  ‘Under-
standing  cyber  insurance’  based  on  a  structured  di-
alogue  with  insurance  companies.  Through  this  dia-
logue,  EIOPA  identified  a  number  of  issues  relevant 
to the cyber insurance market in Europe.

 ›

 ›

 ›

There  is  a  clear  need  for  a  deeper  understand-
ing of cyber risk, on both the supply and demand 
side, for the European cyber insurance industry 
to  develop  further.  This  relates  not  only  to  the 
assessment and treatment of risks in new cyber 
insurance  propositions,  but  also  to  an  under-
standing of a client’s own needs.

In  terms  of  products  and  services,  coverage  is 
mainly focused on commercial business. Howev-
er,  interest  in  cyber  insurance  for  individuals  is 
growing  as  digital  technology  permeates  more 
and more aspects of people’s lives.

The cyber insurance industry expects a gradual 
increase in demand for insurance, mainly driven 
by new regulation, increased awareness of risks 
and the increased frequency and severity of cy-
ber attacks.

 › Qualitative  models  are  used  more  frequently 
than quantitative models to estimate pricing, risk 
exposure  and  risk  accumulation.  A  lack  of  data 
is a significant obstacle and this limitation might 
not  always  allow  for  the  proper  estimation  and 
pricing of risks.

 › Non-affirmative  exposures  are  a  key  concern 
regarding the proper estimation of accumula-
tion of risks. 

 ›

 ›

The  lack  of  specialised  underwriters,  data  and 
quantitative  tools  are  key  obstacles  to  the  de-
velopment  of  the  industry  and  the  provision  of 
proper coverage to the economy. 

Regulation may be welcomed by the industry in 
a  moderate  fashion,  as  it  could  help  to  address 
some of the identified challenges notwithstand-
ing  the  need  for  compliance  with  the  Solvency 
II-Directive (2009/138/EU). 

In light of these findings, cyber risk has been identi-
fied as a priority under the supervision of emerging 
risks in the supervisory convergence plan for 2018 – 
2019. In this context, EIOPA will further develop su-
pervisory  practices  that  seek  to  assess  information 
system resilience, cyber risk vulnerability and the in-
surance industry’s use of big data. 

EIOPA also included a questionnaire on cyber risk in 
the 2018 stress test exercise.

The topic was also a central part of the discussion at 
the EU – US Insurance Forum that took place in Lux-
embourg in November. 

‹  Read the report in full 
here: https://europa.
eu/!qn63wm

31

ANNUAL REPORT 2018PREPARING FOR BREXIT

CROSS-CUTTING THEMES

The  decision  of  the  United  Kingdom  to  leave  the  Euro-
pean Union has significant implications  for insurers and 
pension providers, supervisors and consumers.

Immediately  following  the  results  of  the  referendum  in 
June 2016, EIOPA started to assess the required steps to 
minimise  risk  to  business  and  to  consumers.  EIOPA  fol-
lows the developments in the negotiations closely as well 
as the steps taken by both supervisors and insurers.

In  2018  EIOPA  issued  two  Opinions  to  insurers  and  na-
tional  supervisory  authorities  on  steps  to  take  to  avoid 
interruptions to service and to minimise risk.

 à Opinion on the solvency position of insurers in 
light of the withdrawal of the United Kingdom 
from the EU

In  this  Opinion  EIOPA  addresses  NCAs,  calling  on 
them to make sure that insurers address all risks to 
their  solvency  position  in  light  of  the  United  King-
dom’s decision to leave the EU. In the Opinion, NCAs 
are  requested  to  assess  all  risks  arising  in  national 
markets.  In  addition,  the  Opinion  sets  out  14  areas 
where the determination of the solvency position of 
insurers will change.

 à Opinion on the disclosure of information to 

customers about the impact of the withdrawal of 
the United Kingdom from the European Union

In this Opinion, EIOPA called upon NCAs to remind in-
surers of their duty to inform customers in good time 
about  any  impact  the  United  Kingdom’s  departure 
from the EU will have on existing and new contracts. 

In its opinion from 2017, EIOPA urged insurance un-
dertakings to take the necessary steps in good time 
to  ensure  the  continuity  of  cross-border  insurance 
contracts between the United Kingdom and the Eu-
ropean Economic Area without the United Kingdom 
(EEA30)  following  Brexit.  In  2018,  EIOPA  continued 
to closely monitor the contingency planning of insur-
ance  undertakings,  and  in  particular  of  those  from 
the United Kingdom and Gibraltar with cross-border 
business  in  EEA30  countries.  In  doing  so,  EIOPA  is 
working with the NCAs to address the residual risk.

INSURTECH

The  use  of  digitalisation  and  technology-led  innovation 
in insurance (InsurTech) by insurers continues to increase 
and was once again identified as a major consumer trend 
in the 2018 Consumer Trends Report. 

EIOPA’s focus over the past year has been to ensure that 
financial innovation in existing and evolving business and 
distribution  models  does  not  develop  in  a  manner  that 
causes  undue  detriment  to  consumers.  In  this  context, 
EIOPA consults regularly with industry, digitalisation ex-
perts and consumer organisations through regular round-
tables. The Authority works in close cooperation with the 
European Banking Authority and European Securities and 

IN FOCUS

THEMATIC REVIEW ON BIG DATA

Following  a  cross-sectorial  review  on  the  use  of 
Big  Data  published  in  March  2018  by  the  Joint 
Committee of the European Supervisory Authori-
ties (ESAs), EIOPA launched a call for evidence on 
the use of big data to complete a thematic review. 
The  purpose  of  the  review,  which  has  a  specific 
focus on motor and health insurance, is: 

 ›

 ›

 ›

 ›

to provide an analysis of the potential bene-
fits and risks of big data; 

to  assess  new  business  models  and  data 
quality issues arising from big data, including 
implications for consumers; 

to  enhance  understanding  of  new  types 
and sources of data as well as data analytics 
tools; and 

to identify possible required supervisory and 
regulatory actions.

The  findings  from  the  review  were  published  in 
April 2019.

32

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYMarkets Authority, under the auspices of the Joint Com-
mittee  of  the  European  Supervisory  Authorities  (Joint 
Committee).  EIOPA  also  contributes  to  the  European 
Commission FinTech Action Plan.

ability risk/factors and which may affect the interests of 
a customer. Responses to the consultation will feed into 
the final draft technical advice submitted to the Europe-
an Commission in April 2019.

SUSTAINABLE FINANCE

In  developing  its  approach  to  sustainable  finance,  EIOPA 
consults  closely  with  stakeholders.  This  includes  roundta-
bles, calls for evidence and calls for experts. In 2018, EIOPA 
held its first sustainable finance roundtable.

EIOPA aims to strengthen and complement its expertise 
with regard to the modelling and mitigation of (natural) 
catastrophe risks and climate change risks as part of EI-
OPA's work on sustainable finance. In November, EIOPA 
issued  a  call  for  experts  to  join  a  Technical  Expert  Net-
work on Catastrophe Risks.

In 2018, EIOPA became a member of the Sustainable In-
surance Forum, a network of supervisors and regulators 
from around the world working together on sustainability 
challenges facing the insurance sector.

EIOPA  also  participates  in  the  European  Commission 
technical expert group on sustainable finance, which will 
contribute, among others, to the development of a taxon-
omy of sustainable economic activities.

CONSULTATION ON THE INTEGRATION OF 
SUSTAINABILITY RISKS AND FACTORS

In October 2018, EIOPA set up a Project Group on Sus-
tainable Finance. In November, EIOPA launched a con-
sultation on a technical advice on possible amendments 
to the delegated acts under Solvency II and IDD related 
to  the  identification  and  assessment  of  sustainability 
risks in the areas of underwriting and investments. Ac-
cording to the advice, insurance undertakings shall take 
into  account  the  potential  long-term  impact  of  invest-
ment  decisions  on  sustainability  factors  (stewardship 
principle) and where relevant reflect policyholders' envi-
ronmental, social and governance (ESG) preferences. EI-
OPA is also developing an Opinion on the integration of 
sustainability risks into Solvency II. The proposed draft 
amendments to the IDD aim to ensure that environmen-
tal,  social  and  governance  preferences  are  considered 
in various stages of the product lifecycle for customers 
seeking insurance products with an ESG profile. Insurers 
and intermediaries are also called upon to identify any 
conflicts of interest that may arise in relation to sustain-

IN FOCUS

A SUSTAINABLE FINANCE  
ACTION PLAN

As a supervisor, EIOPA has a role in making sure 
that  insurers  and  pension  fund  providers  are  op-
erating in a sustainable way. This includes making 
sure  that  insurers  manage  and  mitigate  environ-
mental, social and governance risks appropriately; 
that the preferences of policy holders and pension 
scheme members and beneficiaries for sustainable 
investments  are  reflected;  and  that  insurers  and 
pension  funds  adopt  a  sustainable  approach  to 
their investments and other activities.

EIOPA’s sustainable finance action plan address-
es  the  need  for  a  cross-sectoral  and  cross-pillar 
approach to sustainable finance. Indeed, sustain-
able  finance  affects  both  insurers  and  pension 
funds  in  their  prudential  requirements  and  in 
their  conduct  of  business  requirements.  It  also 
affects quantitative and qualitative requirements, 
as  well  as  public  disclosure  and  supervisory  re-
porting.  For  insurers,  sustainable  finance  affects 
both  sides  of  their  balance-sheet:  the  asset  side 
via their investments and the liability side, for in-
stance via their exposure to climate change risk.

Actions  include  supporting  the  European  Com-
mission in the development of a taxonomy, pro-
posing  how  to  include  sustainable  finance  fac-
tors  (i.e.  the  so-called  environmental,  social  and 
governance factors) into prudential and conduct 
of  business  regulations,  including  sustainability 
considerations  in  Europe-wide  stress  tests  and 
participating  in  the  European  and  international 
dialogue on sustainable finance.

33

ANNUAL REPORT 2018A RESPONSIBLE, COMPETENT AND 
PROFESSIONAL ORGANISATION

ADEQUATE, SAFE AND SECURE WORK 
ENVIRONMENT 

MANAGEMENT OF RESOURCES

Ensuring sound financial management of EIOPA's finance, 
budget and procurement processes as well as establish-
ment  of  sound  financial  annual  accounts,  EIOPA  imple-
mented  an  e-workflow  project,  which  integrates  the 
workflows  with  EIOPA’s  document  management  and 
accounting  systems.  The  aim  was  to  increase  efficiency, 
reduce costs and paper, thus decreasing EIOPA’s environ-
mental impact. One hundred percent of the budget was 
committed  in  2018  and  the  audit  reports  received  from 
EIOPA’s external auditors fully confirmed the legality and 
accuracy of the EIOPA accounts.

Regarding human resources, EIOPA implemented a new 
competency framework to deliver a coherent and strate-
gic approach to HR management. This framework assists 
with addressing resource gaps through training and re-al-
location  of  existing  staff.  To  allow  for  greater  flexibility 
and efficiency in staff planning, a large-scale AD 5 cam-
paign was concluded with a general profile to create a re-
serve list of experts that can be used in the coming years 
in various areas of the Authority. Important progress was 
also made with regard to the roll out of SYSPER - the new 
electronic HR management system introducing efficiency 
gains in the HR processes.

With the objective of providing EIOPA staff and stakehold-
ers  with  a  safe  and  secure  work  environment  equipped 
with  the  resources  required  to  undertake  their  tasks, 
EIOPA upgraded its central repository and data analysis 
platforms,  aligned  with  XBRL  taxonomy  changes.  Four-
teen Solvency II data collection deadlines were managed 
successfully. The strategy development phase for the data 
centre migration programme was concluded on time. The 
transition  started  in  2018  and  expected  to  run  until  the 
fourth quarter of 2019. EIOPA’s digital workplace refresh 
project  was  completed,  including  the  rollout  of  modern 
tablet computers and WebEx conferencing enabling more 
efficient internal and external communication. At the end 
of 2018 the entire IT project portfolio contained around 
110  projects  and  activities.  A  centralised  management 
of  the  portfolio  was  introduced  and  provided  corporate 
wide visibility on current and planned initiatives. Resourc-
es were allocated more efficiently, and a monthly status 
update was made available. 

The implementation of a document management system 
(ERIS) – based on EIOPA’s existing SharePoint platform – 
was completed at the end of the second quarter 2018. The 
new system provides staff members with new tools and 
functionalities to create, use, share and organise internal 
documents, while also enabling EIOPA to better meet its 
recordkeeping and archiving obligations.

EIOPA also launched a number of initiatives to enhance 
the security of its assets. This included the development 
of ‘Practical Arrangements on Handling EIOPA Informa-
tion’  to  support  the  implementation  of  the  Professional 
Secrecy  Decision  for  externals.  EIOPA  also  developed  a 
set  of  security  requirements  in  line  with  industry  best 
practices  and  taking  into  account  risks  related  to  cyber 
threats  and  cloud  outsourcing.  A  new  web  proxy  and 
e-mail gateway have been implemented to strengthen EI-
OPA’s capabilities to manage cyber-security related risk. 
Taking into account the IAS audit recommendations aim-
ing at simplifying the process of sensitive data exchange, 
EIOPA performed a cost-benefit analysis and aims to im-
plement a new solution for the 2019 Stress Test exercise.

34

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYENGAGING WITH STAKEHOLDERS

In  addition  to  working  closely  with  national  authorities, 
EIOPA  also  relies  on  a  constructive  and  continuous  en-
gagement with stakeholders, in particular industry repre-
sentatives and consumer organisations and academics, to 
ensure the quality and relevance of its work. 

Stakeholder groups play an essential role in EIOPA’s work, 
providing  EIOPA  with  valuable  input  to  policy  develop-
ments  and  with  a  vital  connection  to  industry,  consum-
ers and beneficiaries of insurance and pension products. 
Through this continuous dialogue, EIOPA can ensure that 
it is able to take informed but importantly independent 
decisions in the best interest of European citizens.

IN FOCUS

ELECTION OF STAKEHOLDER GROUP MEMBERS

Following  an  open  call,  EIOPA  appointed  new  mem-
bers to both of its stakeholder groups in July 2018. The 
new members took up their appointment in Septem-
ber  and  will  serve  a  2½-year  term.  Each  stakeholder 
group consists of 30 individuals appointed to represent 
(re)insurance  companies  and  intermediaries  (for  the 
Insurance  and  Reinsurance  Stakeholder  Group)  and 
institutions for occupational retirement provision (for 
the Occupational Pensions Stakeholder Group) as well 
as consumers, scheme beneficiaries, representatives of 

small and medium-sized enterprises and relevant pro-
fessional associations. Independent academics are also 
included in each group. 

Members were selected from 215 applications from 25 
countries.  In  its  selection,  EIOPA  aimed  for  balance 
in  terms  of  gender,  geography  and  representation  of 
different  types  of  stakeholder.  In  particular,  EIOPA 
strengthened  representation  from  consumers  and 
from beneficiaries.

Stakeholder group representation of interests 2016 and 2018

25

20

15

10

5

0

20 20

18

11

4

3

Industry 
(Insurance and 
pensions)

Employees

Consumers/
users/
beneﬁciaries

  2016

  2018

12

10

10

7

3

2

SMEs

Professional 
associations

Academics

35

ANNUAL REPORT 2018  In October 2018, Gabriel Bernardino took part in a hearing of the 

European Parliament Economic and Monetary Affairs Committee with the 
Chairs of the European Banking Authority and the European Securities 
and Markets Authority

In line with its mandate, EIOPA convenes two stakeholder 
groups (insurance and reinsurance, and occupational pen-
sions)  for  consultation  on  actions  concerning  technical 
standards and their implementation, as well as guidelines 
and  recommendations.  Members  of  stakeholder  groups 
may also submit opinions and advice to EIOPA on any is-
sue related to its tasks.

Through its annual conference, EIOPA brings together over 
350  participants  from  the  financial  services  industry,  Eu-
ropean Union institutions as well as consumer represent-
atives, academia, journalists and representatives from na-
tional supervisory and governmental authorities and take 
part in a day of in-depth analysis and debate on the most 
topical issues facing the insurance and pension sector. 

EIOPA  also  engages  with  stakeholders  through  round-
tables (including on InsurTech and sustainable finance), 
other events, speaking engagements and welcoming vis-
itor groups to its premises in Frankfurt.

EIOPA holds a regular dialogue with the European institu-
tions and is also subject to regular and close scrutiny from 
the European Parliament, the European Court of Auditors 
and the European Ombudsman.

36

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYIN FOCUS

INSURANCE AND PENSIONS:  
SECURING THE FUTURE

Maintaining consumer confidence in insurance and pen-
sions is critical given that both depend on long-term in-
vestments and trust. In addition, regulators and providers 
must take into account the impact of climate change and 
the importance of sustainability. These were some of the 
key messages from the European Insurance and Occupa-
tional Pensions Authority (EIOPA)’s eighth annual confer-
ence, held on 20 November in Frankfurt, Germany. 

With a firm focus on the future, other key topics for dis-
cussion  included  the  supervision  of  cross-border  busi-
nesses following the economic crisis; the relationship be-
tween  insurance,  pensions  and  sustainable  finance;  and 
the threats and opportunities presented by cyber risk and 
cyber insurance. Over 350 participants from the financial 
services industry, government institutions and superviso-
ry authorities attended the day-long event. 

Gabriel  Bernardino  opened  the  event,  emphasising  the 
important of ensuring that regulation remains fit for pur-
pose  and  referencing  the  ongoing  review  of  Solvency 
II.  The  keynote  speech  also  covered  aspects  of  EIOPA’s 
activities  and  achievements  related  to  supervisory  con-
vergence and consumer protection, as well as upcoming 
challenges and opportunities.

Rimantas Šadžius, Member of the European Court of Au-
ditors, provided the first impulse statement. Mr Šadžius 
presented  the  recently-published  report  on  EIOPA,  not-
ing that the Court is well-placed to provide a pan-Europe-
an perspective. ‘There are still limitations on the supervi-
sion of cross-border businesses, which means fragmented 
protection for policy holders’ he said, calling for enhanced 
pragmatic European cooperation.

37

ANNUAL REPORT 2018Emily  Shuckburgh,  Climate  Scientist,  British  Antarctic 
Survey  spoke  about  the  imperative  need  for  climate  ac-
tion. ‘This presents an economic as well as environmental 
threat,’ she said. ‘Transformational change is required. If 
we are to survive, we have to live in harmony with nature 
and take responsibility.’

How safe is your phone? André Baptista, voted the ‘Most 
Valuable Hacker’, INESC TEC - Institute for Systems and 
Computer Engineering, Technology and Science, Univer-
sity  of  Porto,  provided  a  brief  snapshot  of  the  security 
threats posed by sophisticated cyber hackers. 

Jens Weidmann, President, Deutsche Bundesbank provid-
ed  the  final  keynote  speech,  noting  that  ten  years  after 
the financial crisis came to a head, we are still grappling 
with the fallout. He outlined some current challenges for 
insurers  including  low  interest  rates,  but  also  identified 
positive  developments  such  as  Solvency  II.  The  current 
financial  regime  is  helping  to  mitigate  systemic  risk,  he 
said, though new challenges such as digitalisation, liquidi-

ty risks, the emergence of FinTech and evolving consumer 
expectations must now be faced. 

The  conference  also  included  expert  panel  discussions. 
The  first  examined  issues  concerning  cross-border  su-
pervision, including on how the internal market can work 
better for consumers and how EU policyholders can ben-
efit  from  high-quality,  consistent  supervision  and  why 
conduct of business supervision matters for consumers.

A second expert panel analysed the relationship between 
insurance,  pensions  and  sustainable  finance,  and  asked 
whether  financial  sustainability  and  sustainable  finance 
are two sides of the same coin. The panel also assessed 
the role for insurers and pension funds.

A  final  discussion  analysed  whether  cyber  presents  a 
new risk or a new opportunity. An expert panel looked at 
whether society is aware of its exposure to cyber events; 
the role of the insurance industry and whether the insur-
ance sector will be changed forever; and increasing finan-
cial resilience to cyber risks.

38

‹  For more information about 
the 2018 annual conference, 
including video highlights, go 
to: https://europa.eu/!bg88ck

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYJOINT COMMITTEE

In 2018, under the chairmanship of ESMA, the Joint Com-
mittee continued in its role as a central point for coordina-
tion and exchange of information between the European 
Supervisory Authorities (ESAs), along with the European 
Commission and the European Systemic Risk Board. The 
focus of the committee on Brexit-related issues increased, 
as the ESAs continued in their preparation for the with-
drawal of the UK from the EU. At the same time, progress 
continued  on  work  in  other  important  cross-sectoral 
fields  such  as  enhancing  consumer  protection,  monitor-
ing financial innovation, and combatting money launder-
ing and terrorist financing.

OVERSEEING MARKET DEVELOPMENTS 
AND CROSS-SECTORAL RISKS 

The Joint Committee continued as an important forum for 
discussions on market developments and in-depth analy-
sis  of  emerging  risks,  helping  to  identify  the  main  areas 
of  supervisory  concern  across  the  EU.  As  uncertainties 
regarding the UK’s withdrawal from the EU grew, the im-
pact of a potential cliff-edge scenario, ongoing superviso-
ry matters, as well as future cooperation with UK author-
ities became focal points for the Joint Committee. These 
escalating uncertainties were reflected in the Joint Com-
mittee’s  biannual  Risk  Reports,  published  in  spring  (JC 
2018 07) and autumn (JC 2018 27), which also addressed 
other necessary measures to ensure consistent EU super-
visory oversight in light of Brexit, including on possible re-
locations, as well as highlighting the need for appropriate 
contingency planning by financial institutions.

Aside from Brexit issues, both Joint Committee Risk Re-
ports also covered risks associated with repricing of risk 
premia,  increases  in  yields  and  interest  rates,  as  well  as 
operational,  cyber, and sustainability risk developments. 
The reports correspondingly conveyed suggested actions 
to address these rising challenges.

SAFEGUARDING CONSUMERS ACROSS 
FINANCIAL SERVICES AND EXAMINING 
FINTECH DEVELOPMENTS

Consumer protection and financial innovation once more 
figured  prominently  on  the  Joint  Committee’s  agenda. 
With  the  PRIIPs  Regulation  applying  as  from  2018,  the 
ESAs  focused  on  ensuring  the  smooth  implementation 
of  the  new  rules.  To  this  end,  additional  Questions  and 

Answers (JC 2018 22) were published to clarify the appli-
cation of the rules and to promote common supervisory 
approaches and practices. The ESAs also analysed issues 
raised by National Competent Authorities and stakehold-
ers in order to aid with the coherent functioning of the 
rules. In July the Joint Committee called upon the Euro-
pean Commission to provide detailed public guidance on 
the types of products, and in particular bonds, which fall 
within the scope of the Regulation (JC 2018 21). 

In October 2018, the Joint Committee launched a con-
sultation  paper  (JC  2018  60)  on  targeted  amendments 
to  the  Delegated  Regulation  covering  the  rules  for  the 
PRIIPs Key Information Document (KID). That consulta-
tion addressed issues that had arisen since the introduc-
tion of the new rules, as well as the application of the 
KID for UCITs funds taking into account that the exemp-
tion for UCITs funds was, at that stage, due to expire at 
the end of 2019.

In August 2018, the scope of application of the current 
ESMA-EBA Guidelines on Complaints Handling (JC 2018 
35) was extended to authorities supervising the new in-
stitutions established under the revised Payment Service 
Directive  and  the  Mortgage  Credit  Directive,  thus  en-
suring identical set of requirements for complaints-han-
dling and level of protection for consumers applies to all 
financial institutions across the banking, investment and 
insurance sectors.

In  the  field  of  financial  innovation,  the  Joint  Committee 
published a Report on the use of Big Data (JC 2018 04), 
presenting the benefits and risks of allowing the develop-
ment of products tailored to consumers’ needs in recur-
ring to big data analytics and processes. The final Report 
encouraged  the  adoption  of  good  practices  by  financial 
institutions, and an accompanying consumer information 
sheet (JC 2018 05) provided a concise overview for con-
sumers about the use of big data in financial services. The 
Joint Committee also conducted a monitoring exercise on 
the  evolution  of  automation  in  financial  advice.  The  re-
sulting Report (JC 2018 29) illustrated that while the phe-
nomenon seems to be slowly growing, the overall number 
of firms and customers involved is still quite limited.

The ESAs also began working on several joint actions under 
the FinTech Action Plan. The first joint deliverable from this 
Action Plan was the Joint Report on Regulatory Sandboxes 
and Innovation Hubs (JC 2018 74), which set out a compar-
ative  analysis  of  the  innovation  facilitators  established  to 
date within the EU and outlined observed  practices for the 
design and operation of innovation facilitators. 

39

ANNUAL REPORT 2018The  Joint  ESAs  Consumer  Protection  Day  2018,  which 
took place in Lisbon, Portugal, facilitated the ESAs to en-
gage with key – and new – stakeholders, especially rep-
resentatives of consumers, on important issues faced by 
consumers and investors across the EU. One of the top-
ics covered that day was the extensive work done by the 
ESAs  on  bringing  greater  transparency  to  the  costs  and 
performance  of  retail  investment  products,  which  will 
help  consumers  make  better  informed  decisions  and  to 
compare products efficiently.

STEPPING UP THE FIGHT AGAINST MONEY 
LAUNDERING AND TERRORIST FINANCING

In a year that presented a number of high-profile cases in-
volving  several  EU  banks,  which  had  failed  to  implement 
robust systems and control frameworks to prevent finan-
cial crime, the ESAs enhanced their focus on ensuring con-
sistent application of anti-money laundering and counter-
ing the financing of terrorism (AML/CFT) rules across the 
EU and improving standards of AML/CFT supervision.

As part of this, the ESAs organised three workshops on the 
risk-based approach to AML/CFT, on money laundering and 
terrorist financing (ML/TF) risks and e-money, and ML/TF 
risks  and  money  remittance  that  brought  together  repre-
sentatives from national competent authorities, the Europe-
an Commission, law enforcement, the FATF Secretariat and 
the private sector. Their aim was to consolidate supervisors’ 
understanding of both, the ML/TF risk associated with dif-
ferent sectors and business models and the AML/CFT sys-
tems and controls firms put in place to mitigate those risks; 
and to explore different approaches to the AML/CFT super-
vision of firms. These workshops were attended by over 300 
AML/CFT supervisors from all Member States.

At the start of 2018, the ESAs focus was on FinTech and 
how  various  innovative  solutions  are  used  by  firms  to 
meet  their  AML/CFT  obligations.  Under  EU  law,  credit 
and  financial  institutions  are  required  to  assess  ML/TF 
risks associated with their business and put in place effec-
tive policies and procedures to mitigate these risks. CDD 
measures  are  central  to  these  policies  and  procedures. 
However, EU law is technology-neutral and does not set 
out in detail how these CDD measures should be applied, 
giving an opportunity to financial and non-financial firms 
to  explore  new  ways  of  meeting  institutions’  CDD  obli-
gations. While these innovations can potentially improve 
the  effectiveness  and  efficiency  of  AML/CFT  controls, 
they can also present various risks and potentially weak-
en ML/TF safeguards, if applied unthinkingly. These risks 

were addressed by the Joint Committee in its Opinion on 
the  use  of  innovative  solutions  (JC  2017  81),  which  was 
published on 23 January 2018. 

Another  area  of  focus  was  on  addressing  shortcomings 
with  respect  to  cooperation  and  information  sharing, 
both at domestic level between different authorities and 
across borders in other EU member states. Cooperation 
and exchange of information between competent author-
ities responsible for overseeing AML/CFT compliance of 
credit and other financial institutions is an essential part 
of  an  effective  AML/CFT  regime.  EU  AML/CFT  legisla-
tion  establishes  an  obligation  for  competent  authorities 
to cooperate and exchange information, but it does not 
set out in detail how this should be achieved. Therefore, 
in November 2018, a consultation was launched on draft 
joint  guidelines  on  the  supervisory  cooperation  and  in-
formation exchange (JC 2018 59). The guidelines envisage 
that  supervisory  practices  for  cooperation  and  informa-
tion exchange could be improved through the creation of 
AML/CFT colleges of supervisors and set out conditions 
for the establishment of these colleges. In addition, these 
guidelines also set out the ESAs expectations for bi-later-
al communications between the competent authorities.

MANAGING THE SINGLE RULEBOOK AND 
ENSURING A LEVEL PLAYING FIELD

In  December  2018,  the  ESAs  published  two  joint  draft 
Regulatory Technical Standards (RTS) to amend the RTS 
on the clearing obligation (JC 2018 76) and risk mitigation 
techniques for non-cleared OTC derivatives (JC 2018 77). 
These  standards  extend  the  special  treatment  currently 
associated with covered bonds to simple, transparent and 
standardised (STS) securitisations, to ensure a level play-
ing field with covered bonds. 

The ESAs published a statement on disclosure requirements 
for EU securitisations and consolidated application of secu-
ritisation rules for EU credit institutions (JC 2018 70), in re-
sponse to industry concerns relating to severe operational 
challenges  both  in  meeting  the  transitional  provisions  of 
the Securitisation Regulation disclosure requirements. The 
ESAs emphasized that competent authorities should apply 
a proportionate approach to examining reporting entities’ 
compliance with the rules in the short term.

Since the adoption of two Implementing Regulations on 
credit  assessments  by  External  Credit  Assessment  Insti-
tutions  (ECAIs)  based  on  the  draft  Implementing  Tech-
nical  Standards  (ITS)  submitted  by  the  Joint  Committee 

40

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYIN FOCUS

NAVIGATING NEW CHALLENGES TOGETHER

The  annual  Consumer  Protection  Day  took  place  in 
June  in  Lisbon.  The  event  brought  together  215  con-
sumer  representatives,  finance  industry  representa-
tives and regulators under the theme of navigating new 
challenges together.

The programme comprised a series of speeches, pan-
el discussions and interviews to address a number of 
challenges facing consumer protection in financial ser-
vices in Europe. 

in 2016, and subsequent amendments in 2017, the ESAs 
launched  a  consultation  on  further  amendments  to  the 
Implementing  Regulations  (JC  2018  40  and  JC  2018  41) 
to  reflect  the  outcome  of  a  monitoring  exercise  on  the 
adequacy of the mappings, based on a quantitative and 
qualitative assessment. In particular, the ESAs proposed 
to change the mapping for two ECAIs, together with the 
introduction of new credit rating scales for ten ECAIs.

MONITORING OF FINANCIAL 
CONGLOMERATES 

In 2018, the Joint Committee published its annual list of 
Financial Conglomerates (JC 2018 68) showing the loca-
tion of 78 financial conglomerates with the head of group 
in the EU/EEA area, one financial conglomerate with the 
head of group in Switzerland, one in Bermuda, and one in 

the United States. In addition, the Joint Committee con-
tinued to work on reporting templates in this field. 

BOARD OF APPEAL

The ESAs continued to provide operational and secretarial 
support to the Board of Appeal. In 2018, there were two 
appeal cases brought against ESMA. In the first case, the 
Board  of  Appeal  unanimously  decided  that  the  appeal 
should be dismissed (BoA 2018 01), as no ESMA decision 
could be identified as grounds for appeal, and the appel-
lant could not be contacted. In the second case, against a 
decision of ESMA not to open a formal investigation of the 
Cyprus  Securities  and  Exchange  Commission  (CySEC)  in 
relation to certain dealings in binary options and contracts 
for differences, the Board of Appeal unanimously held that 
it had no jurisdiction to hear the appeal (BoA 2018 02).

41

ANNUAL REPORT 2018LOOKING AHEAD

REVIEW OF THE EUROPEAN SUPERVISORY 
AUTHORITIES

Since  its  inception,  EIOPA  has  worked  to  ensure  sound 
and robust regulation of the insurance and pension sec-
tors  as  well  as  high-quality  and  consistent  supervision, 
ensuring better protection of consumers. In this context, 
EIOPA has welcomed the review of the European Super-
visory Authorities.

EIOPA  strongly  believes  in  a  holistic  and  integrated  ap-
proach  towards  European  prudential  and  conduct  of 
business supervision. In the face of increasing cross-bor-
der activity, only strong European responses will counter 
cross-border  threats  and  safeguard  consumers.  In  this 
regard, EIOPA believes its regulation should be strength-
ened, in particular by an improved follow up of the eval-
uations  of  supervisory  practices  and  an  increased  role 
when it detects early signs of cross-border failure. EIOPA 
also believes that an effective monitoring of supervisory 
practices  in  jurisdictions  with  Commission  equivalence 
decisions should be considered.

EIOPA stands ready to take on additional tasks as request-
ed so that it can continue to support the development of 
high-quality  and  effective  supervision  for  the  benefit  of 
Europe’s economy, businesses and citizens.

PAN-EUROPEAN PERSONAL PENSION 
PRODUCT (PEPP)

EIOPA notes that the trilogue on December 13 2018 led to 
a successful political agreement on the overall principles of 
a pan-European Personal Pension Product (PEPP) as well as 
on the remaining issues including the authorisation of the 
PEPP  by  NCAs,  product  intervention  powers  for  EIOPA, 
decumulation options and the cost cap for the basic PEPP. 

PEPP  provides  European  citizens  an  entirely  new  per-
sonal pension framework in the form of a safe, portable, 
long-term  retirement  savings  product.  As  a  European 
supervisory authority, EIOPA will ensure consistent high 
standards  throughout  Europe.  EIOPA  stands  ready  to 
implement the responsibilities by the legislators to make 
sure that PEPP becomes a pension product that success-
fully  fosters  long-term  investment,  meets  the  needs  of 
European  citizens  and  helps  them  to  achieve  a  better 
quality of life in their retirement.

42

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYMANAGEMENT

On 18 December 2017, the Board of Supervisors adopted 
the 2018 budget for a total of EUR 25,207,008.

NCAs of the Member States (responsible for the supervi-
sion of financial institutions) contribute to the financing 
of  EIOPA  with  60%  of  the  total  budget.  The  European 
Commission  (COM)  funds  EIOPA’s  budget  with  40%(3). 
The European Free Trade Association (EFTA) States fund 
EIOPA  with  a  defined  ratio(4)  that  supplements    the 
NCAs contributions. In addition, NCAs and EFTA Mem-
ber States cover 60% of the total pension contributions 
for EIOPA staff. 

(3)  Regulation  (EU)  No  1094/2010  of  the  European  Parliament  and  of 
the  Council  of  24  November  2010  http://eur-lex.europa.eu/legal-con-
tent/EN/TXT/PDF/?uri=CELEX:32010R1094&from=EN

(4)  Decision of the EEA Joint Committee No 201/2016 of 30 September 
2016 
http://www.efta.int/media/documents/legal-texts/eea/other-le-
gal-documents/adopted-joint-committee-decisions/2016%20-%20Eng-
lish/201-2016.pdf

EIOPA’s 2018 budget included the following contributions: 
EUR 15,307,153 from NCAs, EUR 434,855 from EFTA coun-
tries, EUR 100,000 from an administrative agreement and 
EUR 9,365,000 from COM. COM repaid the 2016 budg-
etary surplus of EUR 107,253 as part of the 2018 budget. 

The initial adopted 2018 budget of EIOPA can be viewed in 
Table 1. A total of nine budget transfer operations were exe-
cuted to accommodate budgetary needs throughout 2018.

In 2018, 96.46% of the credits carried forward from 2017 
were consumed. The carry forward concerns services and 
products ordered in 2017 which were invoiced and paid in 
2018 (C8). More information on the carry forward can be 
viewed in Table 2. 

In 2018, EIOPA managed seven open tender procedures, 
five successfully and two unsuccessfully and two compet-
itive  negotiated  procedures,  out  of  which  one  was  suc-

Table 1: Budget implementation 2018 from initial adopted budget by titles

Title and description

Approved 2018 
budget EUR

Final 2018 budget 
EUR

Committed EUR

Paid EUR

Carry forward 
EUR

Title I — Staff expenditure

17 386 000.00

17 213 573.82

17 213 573.82

15 571 447.27

1 642 162.55

Title II — Administrative 
expenditure

Title III — Operational 
expenditure

3 103 467.00

3 555 565.05

3 355 565.05

2 696 295.80

659 269.25

4 717 541.00

4 637 869.13

4 637 869.13

3 279 427.72

1 358 441.41

Total

25 207 008.00

25 207 008.00

25 207 008.00

21 547 170.79

3 659 837.21

Table 2: Carry forward implementation 2017-2018

Title  and description

2017 budget  
final amount 
EUR

Carry forward 
2017 to 2018 EUR 

% Carry forward 

Paid amounts 
EUR 

% Paid 

Title I – Staff expenditure

15 466 510.25

901 883.67

3 631 821.37

620 842.71

5.83

17.24

856 923.09

608 716.88

95.01

98.05

4 900 924.43

1 299 134.28

26.14

1 256 204.04

96.70

Title II — Administrative 
expenditure

Title III — Operational 
expenditure

Total

23 999 256.05

2 821 860.66

11.71

2 721 844.01

96.46

43

ANNUAL REPORT 2018cessful.  In addition, two negotiated procedures without 
publication of a contract notice; three negotiated proce-
dures for middle value contracts; one negotiated proce-
dure for a low value contract; 42 negotiated procedures 
for very low value contracts (single tenders) and one pay-
ment  against  invoice  were  completed.  Furthermore,  14 
direct and framework contracts were concluded; 158 spe-
cific contracts and order forms (under existing framework 
contracts);  42 purchase orders; five service level agree-
ments; nine memoranda of understanding; one price revi-
sion (under a framework contract) and 72 amendments of 
existing contracts were signed.

HUMAN RESOURCES 
MANAGEMENT

EIOPA is replacing the current e-HR management system 
Allegro with SYSPER, which is utilised by COM. SYSPER 
will benefit the organisation with lower costs, synergies 
and efficiency. Delays in the staff data validation phase at 
the end of 2018 has postponed the roll out of the modules 
from January to April/May 2019. Allegro will run in parallel 
with SYSPER until it is entirely functional.

During 2018, EIOPA continued with the implementation 
of the Competency Framework and its integration in the 
various  people  management  processes,  in  particular  in 
recruitment,  learning,  and  development.  The  following 
competencies  were  also  developed:  Leadership,  Human 
Resources  (HR),  Finance  and  Procurement,  Information 
Technology,  Legal  and  Consumer  Protection,  comple-
menting  the  Core  and  Supervisory  competencies  intro-
duced in 2017.  

The  HR  Unit  continued  its  close  cooperation  with  the 
Management Team regarding the alignment and consist-
ency of application of the various talent and performance 
management  processes.  Thus,  enhancing  the  people 
management approach and facilitating a working climate 
were people and teams can excel. Dedicated workshops 
were held for managers and team leaders, and informa-
tion  sessions  for  staff  took  place.  The  2018  EIOPA  Staff 
Engagement  Survey  revealed  a  high  participation  rate 
(93%) and a high engagement level (62%). 

The HR Unit and the Management Team, in close coop-
eration  with  the  Staff  Committee,  developed  and  com-
mitted resources to the execution of a Staff Engagement 
Action Plan aiming to enhance further the motivation and 
engagement of EIOPA staff. 

ASSESSMENT OF AUDIT RESULTS 
DURING THE REPORTING YEAR  

EIOPA  is  audited  every  year  by  the  European  Court  of 
Auditors  (ECA).  The  audit  provides  a  Statement  of  As-
surance regarding the reliability of the accounts of the 
Agency  and  the  legality  and  regularity  of  the  transac-
tions  underlying  them.  In  addition,  an  independent 
external  auditor  verifies  the  income,  expenditure  and 
financial position of EIOPA.  

The  ECA  audit  over  the  financial  2018  accounts  took 
place  in  November  and  the  final  outcome  is  expected 
during 2019. 

EIOPA is also audited by its Internal Auditor, the Commis-
sion’s Internal Audit Service (IAS). In 2016 IAS executed a 
Risk Assessment that formed the basis for defining the IAS 
Strategic Internal Audit Plan 2017-2019 for EIOPA. This Stra-
tegic Internal Audit Plan includes the following prospective 
topics, subject to annual review and possible changes: 

 ›

Stress tests; 

 › Management of risk-free interest rate; 

 › Oversight tools in the consumer protection area;

 › HR management and ethics; 

 ›

 ›

Procurement and contract management; and

Data management and IT security.

Following the Strategic Internal Audit Plan, the IAS per-
formed  in  2018  a  comprehensive  audit  on  the  Human 
Resources Management and Ethics. The objective of the 
audit was to assess the adequacy of the design and the 
efficiency and effectiveness of the HR management pro-
cess, including ethics. The outcome of this audit and con-
sequent action plan will be available in 2019.

44

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYFOLLOW UP OF AUDIT PLANS, 
AUDITS AND RECOMMENDATIONS

after  the  communication  of  the  recommendation 
(internal EIOPA KPI). 

EIOPA  has  put  in  place  arrangements  to  ensure  that 
all  recommendations  made  by  the  IAS,  ECA  and 
the  Discharge  Authority  are  timely  and  adequately 
addressed  through  dedicated  action  plans  and  this 
within  the  agreed  deadlines  or  in  case  no  specific 
target date is specified the latest within twelve months 

EIOPA in 2018 continued to implement recommendations 
from audits of previous years. At the end of 2018 only four 
recommendations were open, arising  from the 2015 Audit 
on EIOPA's Oversight Capability (1) and 2017 Stress Test 
Audit (3) (none of these qualified as critical or very impor-
tant). The status of implementation of these recommen-
dations is as follows: 

IAS Recommendation

Status (at the beginning of February 2019)

2015 EIOPA’s Oversight Capability Audit

Original deadline: 30 September 2017.

Recommendation Number 2 – Developing 
KPIs with qualitative aspects to measure 
performance.

This recommendation was reported as implemented by EIOPA and submitted 
to the IAS for review on 8 February 2018 (together with the pertinent 
documentation). The final closure of the recommendation is subject to the 
outcome of the IAS review and assessment.

2017 Stress Test Audit

Original deadline: 31 March 2018.

Recommendation Number 1 – Estimation of 
the cost of the insurance stress test in terms of 
Human Resources.

This recommendation is under implementation.

2017 Stress Test Audit

Original deadline: 30 June 2019.

Recommendation Number 2 - Securing data 
confidentiality.

This recommendation is under implementation.

2017 Stress Test Audit

Original deadline: 30 June 2019.

Recommendation Number 3 - Feedback from 
stress test participants.

This recommendation is under implementation.

45

ANNUAL REPORT 2018INTERNAL CONTROL SYSTEM

RISK MANAGEMENT

RISK OVERVIEW

A risk is defined as ‘an uncertain event or set of events that, 
should  it  occur,  would  have  an  effect  on  the  achievement 
of  (an)  objective(s)’.(5)  To  manage  such  risks,  EIOPA  has 
initiated  an  approach  to  systematically  identify,  assess, 
plan  and  if  required,  implement  responses  to  potential 
risk  events.  Such  events  can  originate  from  within  the 
Authority or be driven by external forces e.g. changes in 
priorities and agendas at a political level. The likelihood 
of an event occurring and the impact of its consequences 
for an objective should it occur will vary. This variance is 
discussed in terms of ‘risk exposure’. Based on the level 
of exposure, particularly if the impact would be negative, 
EIOPA considers steps to prevent the event from happen-
ing (if within its power), avoid it or mitigate the negative 
consequences. Staff at all levels of the authority are asked 
to consider risks in terms of their work, assess them us-
ing  a  standardised  scale  and  then  consider  appropriate 
and proportionate responses, escalating material risks to 
management when needed.

CORPORATE RISK MANAGEMENT PROCESS

The aim of the process is to provide management with 
an overview of the aggregated risks and in particular to 
allow  management  to  focus  on  those  with  a  potential 
material  impact  on  the  commitments  of  the  Authority 
as defined in its Work Programme and wider operations; 
and  offer  responses  to  mitigate  and  overcome  risks  as 
they occur. Such a picture is essential, and will aid man-
agement  as  they  oversee  implementation  of  an  ambi-
tious Work Programme.

EIOPA’s  risk  management  process  has  been  developed 
in  line  with  the  Commission’s  Internal  Control  Standard 
No.  6  ‘Risk  Management  Process’,  which  states  a  yearly 
assessment  of  risk  is  a  basic  requirement  of  the  annual 
business planning process.

(5)  OGC (2007) Management of Risk: Guidance for Practitioners

Through  its  formal  risk  management  process,  two  stra-
tegic were prioritised for management attention as they 
were deemed to have the greatest impact on the Author-
ity and its work, these were:

 ›

 ›

high degree of uncertainty in the external political, 
economic and legislative environment; and

ongoing resourcing challenges, including the alloca-
tion of new tasks and powers without sufficient staff 
and budget to deliver.

RISK 1: High degree of uncertainty in the external po-
litical, economic and legislative environment 

The  years  2019  and  beyond  are  expected  to  be  marked 
by considerable change for the EU as a whole, and for EI-
OPA, already in 2018 this has created challenges for the 
Authority.  Preparing  for  changes  to  EIOPA’s  tasks,  pow-
ers, governance and funding that may come in 2019, along 
with the potential wider consequences of the UK’s deci-
sion to leave the EU has all demanded the allocation of 
substantial time and resources. Throughout 2018, political 
negotiations  were  ongoing  for  the  legislative  proposals 
for  PEPP  and  following  the  review  of  the  ESAs,  and  for 
the  Withdrawal  Agreement  to  be  enacted  once  the  UK 
leaves the EU. 

RISK 2: Ongoing resourcing challenges, including the 
allocation of new tasks and powers without sufficient 
staff and budget to deliver 

The  Commission’s  Multi-Annual  Financial  Framework 
(MFF)  establishes  the  EU’s  budgetary  planning  across 
the areas of its expenditure, including its funding of EU 
agencies.  The  funding  assumes  a  level  of  tasks  for  each 
agency  and  seeks  to  allocate  appropriate  resources  for 
them to be delivered on a yearly basis. Since the issuing 
of the present MFF, EIOPA has been allocated additional 
tasks stemming from new legislation such as Solvency II 
and IDD and in the domains of FinTech and Sustainable 
Finance. In not all cases has the additional staff proposed 
alongside  new  tasks  been  allocated  and  in  some  cases, 

46

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYno  additional  staff  has  been  proposed  at  all.  EIOPA  has 
therefore  assumed  tasks  without  sufficient  additional 
resources,  including  in  important  areas  such  as  Solven-
cy II SCR Review and in particular regarding Sustainable 
Finance. With its strategic vision to be a credible supervi-
sory authority, EIOPA has since 2016 and the application 
of  Solvency  II,  sort  to  re-allocate  its  staff  from  the  pro-
duction  of  regulation  to  overseeing  its  implementation. 
With already limited resources and the ongoing addition 
of new demands, including in the regulatory area, EIOPA 
has been limited in terms of its capacity to grow specific 
departments and functions focused on supervision.

MITIGATION 1: Stronger approach to prioritisation 

To effectively manage the present uncertainty EIOPA has 
further  enhanced  its  approach  to  prioritization  allowing 
timely  and  upfront  discussions  with  its  Management 
Board  and  Board  of  Supervisors.  The  intention  is  to  fa-
cilitate more informed decision-making through strategic 
discussions  focused  on  the  likely  developments  in  the 
external  environment.  By  judging  the  potential  impacts 
of  these  developments  on  the  Authority  and  the  future 
demands to be placed on it, stronger priority setting can 
be achieved.

In support of this and enhancing the Authority’s ability to 
prepare  for  the  forthcoming  changes,  internal  cross  de-
partmental project groups have been established to spe-
cifically deal with EIOPA’s response to Brexit, and its new 
tasks and powers under PEPP. This has allowed EIOPA to 
consider different scenarios and the impacts it may need 
to manage in the future. As further and more concrete in-
formation is made available on these three issues, EIOPA 
stands ready to adapt its plans and work to ensure it can 
still deliver its mandate.

MITIGATION 2: Efficiency and re-deployment 

To  mitigate  any  potential  risks  of  resource  gaps,  EIOPA 
will  continue  the  positive  efforts  it  has  already  made  in 
improving  efficiency  and  evolving  as  an  organisation  to 
meet the new demands placed on it. In terms of efficien-
cies, EIOPA will continue to review its processes, ration-
alise,  and  where  possible,  introduce  more  automation 
allowing staff to be re-allocated to other tasks. Ongoing 
efforts to seek out synergies with other EU agencies and 
in  particular  the  other  ESAs  will  allow  EIOPA  to  benefit 
from  economies  of  scale  and  administrative  efficiencies 
when  procuring  services  from  external  suppliers.  Exam-
ples of this already include procurement of a contract for 
short-term IT staff run in conjuncture with the European 

Banking Authority, saving money and the administrative 
burden compared to running it separately.

EIOPA  will  build  upon  the  restructure  of  the  Authority 
undertaken  in  2016  to  search  out  further  opportunities 
to bring together different elements of the organisation 
working on similar areas to capitalise on synergies and en-
hance the efficiency. Ensuring changing priorities can be 
realised in changes to its structure and the competencies 
of its work force, EIOPA has already implemented a com-
petency  framework.  This  allows  the  Authority  to  better 
manage and re-allocate staff across its many tasks based 
on  the  shift  in  priorities.  This  has  already  proven  useful 
to  manage  the  change  in  EIOPA’s  tasks  from  regulation 
to supervision.

EIOPA remains committed to do as much as possible to 
narrow  any  future  gap  between  allocated  and  required 
resources,  allowing  it  to  deliver  existing  commitments 
and  its  new  tasks  and  powers.  Pending  the  outcome  of 
its  own  internal  analysis  the  extent  this  effort  can  fully 
address the gap is still to be determined. If through these 
measures EIOPA cannot meet on the demands placed on 
it, robust re-prioritisation will be undertaken.

47

ANNUAL REPORT 2018COMPLIANCE AND 
EFFECTIVENESS OF INTERNAL 
CONTROL STANDARDS

EIOPA’s Internal Control Framework in 2018 was based on 
the 16 Internal Control Standards of the European Com-
mission. They were approved by the Management Board 
in 2015 and implemented within the organisation by the 
Executive Director through the adoption of detailed im-
plementing rules and related procedures. The annual as-
sessment  of  the  internal  control  system  was  conducted 
by the Internal Control function and have led to process 
adjustments where relevant.

In November 2018, the Management Board adopted the 
Revised Internal Control Framework, which is in line with 
the model of the European Commission and the Commit-
tee of Sponsoring Organizations (COSO) (6). The revised 
framework is applicable in EIOPA from January 2019.

MANAGEMENT ASSURANCE

The building blocks of management assurance at EIOPA 
consist of several core elements. These are rooted in the 
implementation  of  the  Internal  Control  Standards  and 
continued  strong  management  oversight  of  both  oper-
ational  and  horizontal  activities,  and  adherence  to  prin-
ciples  such  as  sound  financial  management.  Regular  re-
views by EIOPA’s Internal Control Coordinator and audits 
of EIOPA by the Internal Audit Service, European Court 
of  Auditors,  the  Quality  Control  Committee  and  audit 
firms  provide  impartial  and  thorough  reviews  of  these 
measures, and are a further element of management as-
surance. With this framework in place, EIOPA is confident 
there are no significant weaknesses that would create res-
ervations or impact on the validity on the Declaration of 
Assurance on the subsequent page.

(6)  https://www.coso.org/Pages/aboutus.aspx

48

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYDECLARATION OF ASSURANCE

I, the undersigned, 

Fausto Parente, Executive Director of EIOPA, in my capacity as Authorising Officer,

 ›

 ›

declare that the information contained in this Consolidated Annual Activity Report 
2018 gives a true and fair view;

state that I have reasonable assurance that the resources assigned to the activities 
described  in  this  report  were  used  for  their  intended  purpose  and  in  accordance 
with the principles of sound financial management, and that the control procedures 
in place are effective, efficient and provide the necessary guarantees concerning the 
legality and regularity of the underlying transactions.

This reasonable assurance is based on my own judgement and on the information at my 
disposal as presented in this report, including:

 ›

 ›

 ›

the progress and follow-up of risk management activities;

the recommendations of the Internal Audit Service, the accompanying action plans 
and their follow-up; and,

the lessons learnt from the reports of the Court of Auditors for the years prior to 
the year of this declaration.

I confirm that I am not aware of anything not reported here which could harm the inter-
ests of the authority.

[signed]

Fausto Parente

49

ANNUAL REPORT 2018ANNEX I: CORE BUSINESS STATISTICS

PRODUCT AND SERVICES 
OVERVIEW

EIOPA monitors delivery of its Annual Work Programmes 
(AWP) through the development of an Annual Implemen-
tation Plan (AIP). For each product and service in its AWP, 
specific milestones are planned, the involvement of differ-
ent departments and horizontal functions is specified and 
risks are recorded. Throughout the year, EIOPA’s manage-
ment is informed of the status of this work and decides on 
changes such as the introduction of new work or de-lay-
ing  and  de-prioritising  existing  tasks.  The  status  of  the 
products and services by December 2018, as recorded in 
the AIP, provides the basis for the data in the chart below.

The majority of EIOPA’s planned work was delivered suc-
cessfully in 2018, this equates to 218 products and services. 
A further 25, experienced minor delays. The primary reason 
for  delays  was  insufficient  resources,  but  also  changes  in 
requirements and priorities. Only three workstreams were 

not delivered as planned or with a tolerable delay. The first 
was the Internal Model On-going appropriateness indica-
tors’ (IMOGAPIs’) review, with development of IMOGAPIs 
in  2018  limited  due  to  the  issues  of  available  data  for  in-
ternal  models.  In  July  2019,  EIOPA  will  consult  on  a  pro-
posed new template for Internal Model solos and groups 
to  complete  on  an  annual  basis  which  will  aid  the  future 
development of IMOGAPIs. Additionally, an Internal Mod-
el strategy forum will meet regularly in 2019 to coordinate 
Internal Model work and aid the analysis and interpretation 
of future IMOGAPIs. The remaining two were finalisation 
and  final  launch  of  the  redesigned  EIOPA’s  website  and 
finalisation  of  analysis  phase  of  the  redesigned  EIOPA’s 
intranet. With considerable alternative demands arising in 
2018 for the limited resources of EIOPA’s Communications 
Team, a decision was taken to de-prioritise the website pro-
ject. Informing this decision was the fact that EIOPA’s cur-
rent website was still functioning and therefore the impact 
on EIOPA’s stakeholders would be limited. The Authority 
will continue to work on its website and intranet in 2019 
and does not expect the delay to cause any further issues.

2018 Product and service status

  Delivered as planned

  Minor/tolerable delays to delivery

 

It was not possible to deliver as 
planned or within a tolerable delay

39

34

26

28

66

5

12

2

8

1

6

1

7

1

8

2

InsurTech

Conduct of 
Business 
Policy

Conduct of 
Business 
Oversight

Prudential 
Regulation

Supervisory 
Data & 
Reporting

Supervisory 
Oversight

Financial 
Stability

Eﬃcient & 
Eﬀective

70

60

50

40

30

20

10

0

50

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYALLOCATION OF HUMAN 
RESOURCES

With its strategic vision to be a credible supervisory au-
thority, EIOPA continues to strengthen the allocation of 
its staff to supervision related tasks. Combined, the work 
on conduct of business oversight (3%), prudential over-
sight (24%) and enhancing the availability of supervisory 
information and data (19%) account for the biggest share 
of EIOPA’s human resources. Despite changing as an or-
ganisation  from  regulation  to  overseeing  its  consistent 
implementation,  there  continues  to  be  important  reg-
ulatory  tasks  for  the  Authority,  including  preparing  for 
key  reviews  of  Solvency  II.  EIOPA  therefore  maintains 
staffing levels for work on conduct (3%) and prudential 
(16%)  regulation.  Eleven  percent  if  its  staff  were  allo-
cated  to  monitoring  and  reporting  on  risks  to  financial 
stability  and  1%  to  the  new  cross-cutting  theme  of  In-
surTech. The remaining 21% of staff ensured the organ-
isation is managed in a way that is both compliant with 
the regulation EIOPA is subject to and that allows it to 
remain adaptable to a changing situation and still deliver 
its key strategic objectives.

Allocation of resources to EIOPA's activities

1 %

5 %

3 %

21 %

15 %

19 %

11 %

24 %

 

InsurTech

  Conduct of Business Policy

  Conduct of Business Oversight

  Prudential Regulation

  Supervisory Data & Reporting

  Supervisory Oversight

  Financial Stability

  Eﬀective & Eﬃcient

KEY PERFORMANCE INDICATORS

Key Performance Indicators (KPIs) are an important tool 
for monitoring EIOPA’s progress in relation to its defined 
strategic  ambition.  EIOPA  has  set  thirteen  strategic  lev-
el  targets  for  performance  across  its  seven  main  areas 
of work in 2018. Of these, EIOPA achieved or surpassed 
the target for 11, and of the remaining 2, only marginally 
missed the target.

For  its  work  building  the  regulatory  framework  for 
consumer  protection,  EIOPA’s  target  was  intended  to 
capture  the  level  of  interest  and  engagement  with  its 
stakeholders.  The  target  of  20  as  the  average  number 
of  respondents  for  relevant  public  consultations  on 
consumer  protection  topics  was  exceeded  in  2018  for 
the two EIOPA ran. EIOPA did not meet its target for 5 
national initiatives taking inspiration from deliverables, 
however,  in  its  conduct  country  visits  during  2018  EI-
OPA identified instances of action at the national level 
(supervisory focus, use of supervisory tools) to its work. 
This  included  action  on  Unit  Linked  market,  action  on 
PPI, action on POG supervision.

The  KPI  for  EIOPA’s  work  on  the  prudential  regulatory 
framework was for a technically sound and participatory 
review  of  the  Solvency  II  insurance  regulation,  with  the 
target in 2018 of timely and high quality advice, striving 
to reduce complexity whilst preserving risk-sensitivity and 
avoid  pro-cyclicality,  as  well  as  enabling  proportionality, 
delivered to the Commission on the changes to Solvency 
II implementing measures. This target was met with the 
second  set  of  the  SCR  Review  Advice  delivered  in  time 
and quality to the European Commission. The Advice was 
consulted  upon  in  a  public  consultation  as  well  as  with 
the  IRSG.  With  the  aim  of  pursuit  of  Solvency  II  as  the 
practical  implementation  of  the  International  Associa-
tion  of  Insurance  Supervisors’  (IAIS)  International  Cap-
ital  Standard  (ICS),  EIOPA’s  target  was  for  the  ongoing 
development of the ICS remains in line with Solvency II 
principles:  market  consistency  and  risk-based.  The  ICS 
Field Testing was launched by the IAIS in May. Due to its 
stability and comparability, it contained, for the reference 
ICS, a market-adjusted valuation (MAV) approach with a 
single discounting curve. All elements for a practical im-
plementation of Solvency II are contained and the target 
was therefore judged to be met. To assess EIOPA’s efforts 
to contribute to the development of the internal market 

51

ANNUAL REPORT 2018in  pensions,  the  target  was  set  of  proposals  delivered 
by  EIOPA  on  facilitating  the  implementation  of  IORP  II. 
The target specified the areas of improved standardised 
information  to  members  and  beneficiaries,  governance, 
risk management as well as cross-border activities, all of 
which were delivered.

To judge the performance of EIOPA’s supervisory report-
ing and data framework, two KPIs were set. The first relat-
ed to the percentage of insurance undertakings reported 
on  with  valid  data  by  NCAs,  as  evidenced  by  the  com-
pleteness ratio of technically valid reports of the Quan-
titative Reporting Templates (QRTs). The target was 97% 
and EIOPA fell slightly short, with an issue of non-compli-
ance relating to one country with a specific proportionate 
approach to quarterly limitation of reporting. For 2019 the 
KPI will also consider the market share instead of only the 
number  of  undertakings  to  better  reflect  proportionali-
ty  principle.  EIOPA  did  however  meet  its  target  for  the 
monthly publishing of the Risk Free Rate.

The first KPI for EIOPA’s supervisory oversight work was the 
number of supervisory or policy actions taken by NCAs fol-
lowing observations and feedback from EIOPA’s Oversight 
team. With 16 occurring in 2018, the target was exceeded 

by one. EIOPA’s target for the number of bi-lateral engage-
ments with NCAs on oversight topics of 20 was met in 2018.

To assess the quality and broader acceptance of EIOPA’s 
financial stability publications, the number of citations in 
research journals and publications from other institutions 
in the field was set as a target. EIOPA identified 4 in 2018, 
which was one more than the target. EIOPA also set the 
target relating to its Stress Tests, which was the number 
of  financial  stability  risks  with  a  material  impact,  within 
the agreed scope of the Stress Test, not identified by the 
exercise materialising within one year of the publish date 
of  the  results.  EIOPA  achieved  this  target  with  no  such 
risks identified.

EIOPA  also  maintains  two  KPIs  on  the  management  of 
the Authority and its resources. The first is the percent-
age  of  audit  findings  from  European  Court  of  Auditors 
and  Internal  Audit  Service  addressed  by  improvement 
measures by the agreed deadline, or if no deadline was 
set,  within  twelve  months  of  the  finding  being  issued. 
The  target  was  100%,  which  EIOPA  achieved.  EIOPA 
also exceed its 99% target for implementation rate of its 
budget (percentage of the approved budget committed) 
achieving 100% in 2018.

KPI target achievement

11

12

10

8

6

4

2

0

2

We achieved 
the target

We came close to 
achieving the target

We did not achieved 
the target

52

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYANNEX II: EIOPA’S GOVERNANCE AND 
MANAGEMENT

BOARD OF SUPERVISORS

MANAGEMENT BOARD

As  set  out  in  EIOPA’s  Founding  Regulation,  the  Board 
of Supervisors (BoS) is the main decision-making body 
of  EIOPA.  It  is  composed  of  EIOPA’s  Chairperson,  the 
heads  of  28  national  authorities  (Voting  Members),  in-
cluding Permanent Representatives – where more than 
one national authority is responsible for the supervision, 
the  heads  of  three  EEA  EFTA  national  authorities  (Ice-
land, Liechtenstein and Norway), Non-Voting Members 
and Observers.

The  status  of  Non-Voting  Members  is  granted  to  the 
European Commission, the European Banking Authority 
(EBA),  the  European  Securities  and  Markets  Authority 
(ESMA), and the European Systemic Risk  Board (ESRB) 
and  the  European  Free  Trade  Association  Surveillance 
Authority  (EFTA  SA).  The  Board  of  Supervisors  may 
grant  observer  status  to  heads  of  national  authorities 
of acceding countries, competent for the supervision of 
financial institutions. The Board of Supervisors meets at 
least  twice  a  year  and  may  create  internal  committees 
and panels for specific tasks. In 2018, the Board of Su-
pervisors  met  seven  times  including  one  extraordinary 
meeting and the Board of Supervisors’ Strategy Day.

The Management Board (MB) ensures that EIOPA carries 
out its mission and performs the tasks assigned to it. It is 
composed  of  EIOPA’s  Chairman  and  six  other  members 
of the Board of Supervisors, elected by and from among 
the Voting Members of the Board of Supervisors. The Al-
ternate  Chairman  and  the  Executive  Director  of  EIOPA 
participate  in  the  meetings  of  the  Management  Board 
without the right to vote. In accordance with EIOPA’s reg-
ulation, the Executive Director also has an important role 
preparing the work of the Management Board. The meet-
ings are also attended by a representative of the Europe-
an Commission, who has a right to vote only on budget 
issues. The term of office of members of the Management 
Board is two and a half years, and it can be renewed once. 

The Management Board meets at least five times a year, 
always before every regular meeting of the Board of Su-
pervisors,  and  as  often  as  it  deems  necessary.    In  2018, 
the  Management  Board  met  five  times.  This  year  again, 
the  Management  Board  played  a  key  strategic  role  in 
EIOPA’s management. With a focus on planning, budget 
and assurance, the Board steered the revisions of EIOPA’s 
Annual Work Programmes and development of the Draft 
Single Programming Document 2020-2022. It also mon-
itored  the  budget  planning  process  and  allocation  of 
human and financial resources. To support this work the 
Management  Board  receives  updates  on  EIOPA’s  tasks 
and activities on a regular basis.

53

ANNUAL REPORT 2018INFORMATION BOX

MANAGEMENT BOARD MEMBERS, DECEMBER 2018

Gabriel Bernardino

EIOPA Chair

Zuzana Silberova 

Czech National Bank, Czech Republic 

Frank Grund

BaFin-Bundesanstalt für 
Finanzdienstleistungsaufsicht, Germany 

Olaf Sleijpen

De Nederlandsche Bank (DNB), The Netherlands

Jean Hilgers

Nationale Bank van België, Belgium 

Sandrine Lemery

Autorité de Contrôle Prudentiel et  
de Résolution, France 

Alberto Corinti

Istituto per la Vigilanza sulle Assicurazioni, Italy

54

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYANNEX III: STEERING COMMITTEES,  
PROJECT GROUPS, EXPERT NETWORKS AND  
WORKING GROUPS

EIOPA’s policy agenda is also delivered through structures 
established to facilitate cooperation between NCAs and 
EIOPA staff. These structures are an important element of 
the Authority and provide technical input for preparation 
of documents to be adopted by the Board of Supervisors.

 ›

EIOPA currently maintains a two-leg working group struc-
ture composed of working groups (leg one), and of steering 
committees, project groups, expert networks (leg two).

Leg-one consists of the following original working groups:

 ›

 ›

 ›

 ›

Committee  on  Consumer  Protection  and  Financial 
Innovation (CCPFI), which supports EIOPA in fulfill-
ing the requirement laid down in the EIOPA Regula-
tion concerning taking a ‘leading role’ in the area of 
consumer protection and financial innovation; 

Review Panel, which develops methodologies, proce-
dures and tools to conduct peer reviews; 

Information Technology and Data Committee (ITDC), 
which delivers advice on information technology, and 
on transfer, storage and data handling in EIOPA; and

InsurTech Task Force (ITF), which leads EIOPA’s work 
on issues and aspects arising from technology-enabled 
innovation in the (re-)insurance and pensions sectors.

Leg-two  consists  of  the  following  second-wave  working 
structures:

 ›

 ›

Policy  Steering  Committee  responsible  for  the 
following  project  groups  (PGs):  Solvency  Capital 
Requirements  Review  PG,  Long-Term  Guarantees 
Review PG, and Risk-Free Rate PG, Pension Benefit 
Statement and Other Information Documents PG, 
IORP II Implementation, Governance and Risk Eval-
uation  PG,  Illiquid  Liabilities  PG  and  Sustainable 
Finance PG;

Risks  and  Financial  Stability  Steering  Committee 
responsible  for  the  following  PGs:  2019  Method-
ological  Principles  of  Insurance  Stress  Testing  PG, 

Recovery and Resolution PG, Macroprudential Policy 
in Insurance PG, 2018 Insurance Stress Test PG and 
2019 IORP Stress Test PG; and

Supervisory Steering Committee responsible for the 
following PGs: Market and Credit Risk Comparative 
Study  PG,  Non-life  Underwriting  Risk  Comparative 
Study PG; Remuneration Policies PG; Internal Mod-
els SRP PG, Group Supervision Issues PG, Technical 
Provisions PG, E.U.-U.S. Covered Agreement PG; IT 
and Cyber Risk PG.

Last,  EIOPA  maintains  expert  networks  in  the  following 
areas:

 › Quantitative requirements;

 ›

 ›

 ›

 ›

 ›

 ›

Risk management;

Supervisory information;

Internal models;

Financial stability;

Audit and accounting;

Pensions; and

 › Natural catastrophe.

55

ANNUAL REPORT 2018ANNEX IV: STAKEHOLDER GROUPS

EIOPA  has  two  independent  advisory  bodies:  the  Insur-
ance and Reinsurance Stakeholder Group (IRSG) and the 
Occupational Pensions Stakeholder Group (OPSG). Both 
Groups  include  representatives  from  the  industry,  con-
sumers and academia. EIOPA welcomes the contribution 
of the Stakeholder Groups to the work in areas relevant to 
the Authority’s tasks. EIOPA engages in a close dialogue 
with them and provides extensive administrative support, 
whilst ensuring their full independence.

on  the  review  of  Solvency  II  and  on  the  pan-European 
Personal Pension Product (PEPP). The previous OPSG de-
livered advice on the European Commission's Sustainable 
Finance  Action  Plan  and  Action  Plan  on  Financing  Sus-
tainable  Growth,  on  the  implementation  of  the  IORP  II 
Directive, on the IORP Stress Test and on Asset Liability 
Management. Both Groups also provided input on Con-
sumer Trends and on the Review of the ESAs, including 
a Joint letter.

In September 2018 the two-and-half-year mandate of the 
members of the previous Stakeholder Groups expired. 

Following the selection procedure for members of both 
Stakeholder Groups the following improvements in their 
composition were achieved:

 ›

 ›

Better balance in representation;

Improved interaction between the Authority and its 
two advisory bodies. 

The Board of Supervisors (BoS) achieved a better balance 
in the composition and representation of interests in both 
groups  when  it  appointed  the  new  members  of  the  two 
new groups. The proportion of representatives of consum-
ers/users/beneficiaries  increased  by  almost  two-thirds  in 
both groups. Further, the category of professional associa-
tions includes for the first time NGOs and charities.

Members  highlighted  in  their  2016-2018  activity  re-
ports that transparency could be improved. Therefore, 
EIOPA  developed  a  secure  IT  platform  to  allow  for  a 
greater exchange.

In terms of deliverables, the 2016-2018 the previous IRSG 
provided to EIOPA advice on cost and past performance, 

As of September, each new Group held its first meeting 
and  elected  as  their  Chair  Greg  van  Elsen  for  the  IRSG, 
representing  consumers,  and  Bernard  Delbecque  for 
the  OPSG,  representing  Professional  Associations.  The 
current  IRSG  has  provided  advice  on  Illiquid  Liabilities, 
on Travel Insurance, on Resolution funding and national 
Insurance Guarantee Schemes, as well as on Solvency II 
Guidelines on System of Governance. The current OPSG 
has delivered advice on the “IORP II Report on Other In-
formation documents for prospective and current mem-
bers”, and on the application of proportionality in the area 
of governance and risk assessment.

In 2018 the interaction with the Board of Supervisors and 
Management  Board  Members  –  who  regularly  attend 
Stakeholder  Group  meetings  –  culminated  in  the  Joint 
BoS  and  Stakeholder  Groups  meeting  organised  by  EI-
OPA  on  28  November.  The  following  strategic  topics  of 
common interest were discussed: sustainable finance, cy-
ber  risks  and  exposures,  and  Information  documents  to 
policy holders and beneficiaries.

A  full  list  of  stakeholder  group  members  and  accompa-
nying curriculum vitae is available on the EIOPA website: 
https://eiopa.europa.eu/about-eiopa/organisation/stake-
holder-groups/

56

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYOccupational Pensions Stakeholder Group members – status December 2018

Chair: Bernard Delbecque (Belgium)

Vice-Chairs: Aleksandra Mączyńska (Poland), Falco Valkenburg (Netherlands)

#

 Member’s  Name 

 Nationality

 Organisation

1.

Alviniussen, Alf

Norway

Small Treasury Consulting and  
Investment Company

 Category

SMEs

2.

3.

4.

5.

6.

7.

8.

Azzopardi, Moses 

Malta

Maltese Association of Pensioners

Beneficiaries

Briganti, Francesco 

Italy

Cross Border Benefits Alliance Europe

IORPs

Delbecque, Bernard 

Belgium

European Fund and Asset Management 
Association (EFAMA)

Professional 
associations

Duarte, Valdemar

Portugal

Ocidental Pensões

Fekeža Klemen, Senka  Croatia

Erste, Ltd.

Gabellieri, Bruno 

France

European Association of Paritarian 
Institutions (AEIP)

IORPs

IORPs

Employees

Gómez Fernández, 
José Carlos

Spain

Spanish Consumer Association (ADICAE)

Beneficiaries

9. 

Gülich, Christian

Germany

German Consumer Association (BdV)

Beneficiaries

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

Jones, Olav

UK/Norway

Insurance Europe

Kupšys, Kęstutis

Lithuania

Alliance of Lithuanian Consumer 
Organizations 

Lemaire, Christian

France

Amundi Pension Fund

Lewis, Sue

Luciano, Elisa

Mączyńska, 
Aleksandra 

UK

Italy

The People's Pension

University of Torino

Poland

Better Finance

IORPs

Beneficiaries

IORPs

Beneficiaries

Academics

Beneficiaries

Maher, John

Ireland

Waterford  Institute of Technology

Academics

Micilotta, Flavia

Italy

Luxembourg Green Exchange (FESE)

Moriarty, Jerry

Ireland

PensionsEurope

Nellshen, Stefan 

Germany

Bayer-Pensionskasse VVaG

20.

Neyt, Philip 

Belgium

PensioPlus, Belgian Association of Pension 
Institutions

Professional 
Associations

IORPs

IORPs

IORPs

21.

22.

23.

24.

25.

O'Quigley, John

Ireland

Public Sector Pension Trustee Companies

Employees

Oroviceanu, Cătălin 

Romania

Romanian Association of Participants in 
Pension Funds and Investment Funds

Beneficiaries

Reichert, Sibylle 

Germany

Federation of the Dutch Pension Funds

IORPs

Reiner, Michael

Austria

University of Vienna

Reinhammar, Torun*

Sweden

CDP Europe

Academics

Professional 
Associations

57

ANNUAL REPORT 2018#

 Member’s  Name 

 Nationality

 Organisation

26.

27.

28.

29.

30.

Seidel, Philippe

France/Germany

AGE Platform Europe

Valkenburg, Falco

Netherlands

Actuarial Association of Europe (AAE)

van der Lecq, Fieke

Netherlands

Vrije Universiteit Amsterdam

van Meerten, Hans

Netherlands

University of Utrecht

Wancke Widemar, 
Ann-Marie

Sweden

ALECTA

 Category

Beneficiaries

Professional 
Associations

Academics

Academics

IORPs

* Torun Reinhammar replaced Sonia Maffei who had left the group following a change in professional activity.

  Members of the  Occupational 
Pensions Stakeholder Group

58

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYInsurance and Reinsurance Stakeholder Group members – status December 2018

Chair: Greg Van Elsen (Belgium)

Vice-Chair: Michaela Koller (Germany)

#

1.

2.

3.

4.

5.

6.

7.

8.

Member’s  Name 

Nationality

I nstitution

Bataller-Grau, Juan

Spain

University of Valencia

Baumgärtel, Martina  Germany

Allianz SE

 Category 

Academics

Industry

Beaupérin, Typhaine

Belgium/France

Federation of European Risk Management 
Associations (FERMA)

Professional 
associations

Caget, Alexandre

France

A.C. Expertises

Calu, Monica

Romania

Asociatia Pro Consumatori

Fox, Paul

Francis, Hugh 

UK

UK

Finance Watch

Aviva Plc.

Grabowski, Krzysztof

Poland

Kozminski University Warsaw

SMEs

Consumers

Consumers

Industry

Academics

9. 

Halme, Liisa

Finland

Union of Insurance Employees in Finland

Employees

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Hendriks-Muijs, 
Miranda

Netherlands

Univé Cooperative

Industry - 
Cooperative/Mutual

Herboczková, Jana

Czech Republic

Aegon Pojišťovna, a.s.

Industry

Hugonin, Benoit 

France

SCOR Group

Industry - Reinsurance

Jacob, Alin

Romania

Romanian Association of Financial Services 
Users (AURSF) 

Users of (re)insurance 
services

Koller, Michaela

Germany

Insurance Europe

Industry

Kybartas, Tomas

Lithuania

Alliance of Lithuanian Consumer Organizations

Consumers

Laeven, Roger 

Netherlands

University of Amsterdam

Larnaudie-Eiffel, 
Xavier

France

CNP Assurances

Academic

Industry

Marano, Pierpaolo

Italy

Catholic University of Milan

Academics

Materne, Stefan

Germany

Cologne University of Applied Sciences

Academics

Morton, Stephanie

Netherlands/UK

ClientEarth

O'Riordan, Anthony

Ireland

Actuarial Association of Europe (AAE)

Petri, Giampaolo

Italy

Assicurativo Konsumer

Consumers

Professional 
associations

Consumers

Plá, Juan-Ramón

Spain

European Federation of Intermediary 
Associations (BIPAR)

Industry - 
Intermediaries

24.

Prache, Guillaume

France

Better Finance

25.

Reinhammar, Torun

Sweden

CDP Europe

Users of (re)insurance 
services

Professional 
associations

59

ANNUAL REPORT 2018#

Member’s  Name 

Nationality

I nstitution

 Category 

26.

27.

28.

29.

30.

Rodrigues, Tito

Portugal

DECO Proteste Consumer Association

Consumers

Saraste, Lauri

Finland

Local Tapiola

Scaroni, Bruno

Italy

Generali

Industry - 
Cooperative/Mutual

Industry

Ulbricht, Dirk

Germany

Institut fuer Finanzdienstleistungen (Iff)

Consumers

Van Elsen, Greg

Belgium

The European Consumer Organisation (BEUC)

Consumers

  Members of the Insurance and 
Reinsurance Stakeholder Group

60

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYANNEX V: ORGANIGRAM 2018

CHAIR

Gabriel Bernardino

EXECUTIVE DIRECTOR

Fausto Parente

ACCOUNTING

CORPORATE AFFAIRS 
DEPARTMENT
Susanne Rosenbaum

Institutional Relations, Strategy 
and Implementation Team

Communications Team

Legal Team

CORPORATE SUPPORT 
DEPARTMENT
Danny Janssen

Information Technology Unit 
Philip Kitzmantel

Human Resources Unit
Fatima Diago Villescas

Finance and Procurement Unit 
Inga Naumane

Corporate Services Team

POLICY DEPARTMENT
Manuela Zweimueller

OVERSIGHT  DEPARTMENT
Patrick Hoedjes

Insurance Policy Unit
Justin Wray; Deputy HoD

Pension Policy Team

Impact Assesment Team

Oversight Unit
Jarl Kure

Internal Models Team

Peer Review Team

RISK AND FINANCIAL 
STABILITY DEPARTMENT
Dimitris Zafeiris

Crisis Prevention Team

Financial Stability Team

Studies and Statistics Team

SUPERVISORY PROCESSES 
DEPARTMENT 

Ana Teresa Moutinho

CONSUMER PROTECTION 
DEPARTMENT

Fausto Parente (interim)

Supervisory 
Convergence Team

Data and Business 
Intelligence Team

Solvency II Technical 
Inputs Team

Conduct of Business 
Policy Team

Conduct of Business 
Oversight Team

61

ANNUAL REPORT 2018ANNEX VI: ESTABLISHMENT PLAN 2017 
(TEMPORARY AGENTS) AND FIGURES FOR 
CONTRACT AGENTS AND  
SECONDED NATIONAL EXPERTS

Function group and grade

Final budget

Filled as at 31.12.2018 *

1

1

1

4

11

14

13

15

14

11

9

2

96

0

1

1

3

3

3

3

2

0

0

0

16

112

1

0

1

2

3

5

8

14

5

14

22

18

93

0

0

0

0

0

3

4

5

2

0

0

14

107

*+2 AD (AD10 and AD6) and -2 AST (AST10 and AST6) as approved by EIOPA Board of Supervisors under the flexibility rule..

AD 16

AD 15

AD 14

AD 13

AD 12

AD 11

AD 10

AD 9

AD 8

AD 7

AD 6

AD 5

AST 11

AST 10

AST 9

AST 8

AST 7

AST 6

AST 5

AST 4

AST 3

AST 2

AST 1

AD total

AST total

TOTAL

62

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYFilled as at: 31.12.2017

Filled as at: 31.12.2018

CONTRACT AGENTS

Function Group IV

Function Group III

Function Group II

Function Group I

TOTAL

SECONDED NATIONAL EXPERTS

8

15

11

0

34

17

8

17

8

0

33

18

63

ANNUAL REPORT 2018ANNEX VII: ENTRY LEVEL FOR  
EACH TYPE OF POST

Key functions (examples)

Type of contract (Official, 
Temporary Agent (TA) or 
Contract Agent (CA)) 

Function group, grade of 
recruitment 

Indication whether the 
function is dedicated to 
administration support 
or policy (operational) 

CORE FUNCTIONS

Head of department

Head of unit

Head of sector

Senior officer/ 
principal expert

Officer/senior expert

Junior officer/expert

Senior assistant

Junior assistant

SUPPORT FUNCTIONS

Head of Administration

Head of Human Resources

Head of Finance

Head of Communication

Head of IT

Senior Officer / Principal Expert

Officer / Senior Expert

TA

TA

n/a

TA

TA

TA + CA

TA + CA

TA + CA

TA

TA

TA

TA

TA

TA

TA

AD 9

AD 9

n/a

AD 9-11

AD 7-8

AD 5-6 + FG IV

Administration support 
and operational

Administration support 
and operational

n/a

Administration support 
and operational

Administration support 
and operational

Administration support 
and operational

AST 4 + FG III

Administration support

AST 2 + FG II

Administration support

AD 12

AD 9

AD 8 

AD 9

AD 8 

AD 9-11

AD 7-8

Junior Officer / Expert

TA + CA

AD 5-6 + FGIV

Webmaster- Editor

Secretary

Mail Clerk

SPECIAL FUNCTIONS

Data Protection Officer

Accounting Officer

Internal Auditor

Secretary to the Director/
Personal Assistant to the 
Senior Management

CA

CA

n/a

TA

TA

n/a

TA

64

FGIV

FGIII

n/a

AD 8

AD 6

n/a

AST 3

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYANNEX VIII: STATISTICS FROM  
JOB SCREENING/BENCHMARKING EXERCISE

JOB TYPE

Category

Subcategory

2016

2017

2017

Total administrative support and coordination

Administrative support

Coordination

Top level operational coordination

Programme management and  
implementation

Evaluation and impact assessment

General operational

Total Operational

Total neutral

Total finance/control

Total linguistics

15.4 %

11.2 %

4.2 %

75.5 %

4.9 %

53.1 %

6.3 %

11.2 %

9.1 %

9.1 %

n/a 

14.5 %

10.5 %

4 %

76.3 %

3.9 %

54.7 %

3.9 %

13.8 %

9.2 %

9.2 %

n/a

15.2 %

10.1 %

5.1 %

77.2 %

3.2 %

62 %

0 %

12 %

7.6 %

7.6 %

n/a

For reference, please find the descriptions of the categories used in the benchmarking exercise below.

CATEGORIES IN AN ADMINISTRATIVE SUPPORT AND COORDINATION ROLE

TYPE/ROLE

CATEGORY

CATEGORY CODE EXAMPLES (not exhaustive)

Administrative Support  
(ADM SUP)

Document Management

HR Management

Information and  
Communication Technology

DOC

HR

ICT

Internal audit and control

IA

Logistics

LOG

Document centre and archives

HR Officer, Training assistant 
(except payroll and mission reimbursement)

Network administrator, Helpdesk 
assistant (not directly implementing the 
mandate of the Agency)

Internal auditor, internal controller  
(focus on procedures)

Mail clerk, security officer, receptionist, 
building management, facilities.

Head of Resources

RES DIR / HoA

Resources Director,  
Head of Administration

65

ANNUAL REPORT 2018TYPE/ROLE

CATEGORY

CATEGORY CODE EXAMPLES (not exhaustive)

Coordination (COORD)

Legal advice

Communication/ 
information

LEGAL

COMM

DPO, counsellor, legal officer (not directly 
implementing the Agency’s mandate)

External communication (not directly 
implementing the mandate of the 
Agency), Internal communication to the 
Agency’s own staff goes under HR  
Frequently web editing / web design

General coordination

GEN COORD

Inter-institutional contributions

CATEGORIES IN A NEUTRAL ROLE

TYPE/ROLE

CATEGORY

CATEGORY CODE EXAMPLES (not exhaustive)

Neutral

Finance, non-operational 
procurement and quality 
management

FIN/CONT

Accounting; finance; procurement 
and contract management (excluding 
operational); quality management; payroll; 
reimbursement of mission costs; internal 
auditing (with a focus on finance)

Linguistic

LING

Typically editing, translation of documents

EXAMPLES OF JOBS IN OPERATIONAL ROLES

TYPE/ROLE

CATEGORY

Operational 
(OPER)

Top level 
operational 
coordination

CATEGORY 
CODE

Typical Job Titles  
(not exhaustive

T/OP 
COORD

Executive Director

Programme 
management and 
implementation

PGM M/IMP

Evaluation and 
Impact Assessment

EVAL

General operational GEN OPER

Scientific / Technical 
Project (or Support) 
Officer, International Aid 
/ Cooperation Officer, 
Programme Manager (or 
Officer) – EU policies, Policy 
Officer, Project Manager – 
EU Policies

Evaluation Officer, Policy 
Officer, Policy Analyst, 
Statistical Officer, Economic 
Analyst, Statistical Assistant, 
Evaluation Assistant

Policy Officer, Policy 
Co-ordinator, Assistant 
Policy Officer, Policy 
Analyst, Economic Analyst, 
International Relations 
Officer

Typical Entities (not exhaustive)

The AIPN/AHCC and Authorising Officer 
role (e.g. Director, Executive Director 
(ED), President…) Besides the secretariat/
personal assistant to the ED, coordination 
and support of the management Board, 
other jobs directly linked to the ED (‘ED 
office’…) have to be categorised individually, 
depending on their specific content.

Thematic/Scientific Officer, Analyst, 
Expert, Programme Officer, Project 
Manager, Studies and research specialist, 
Data handling, ICT (directly implementing 
the mandate of the Agency, usually 
implementing Title 3 of the budget or 
generating revenues/fees)

Evaluation, impact analysis, external audit, 
inspection or supervision of external 
entities, research assessment, inspection, 
licensing.

Managers of organisational units in 
operational areas (directly implementing 
the mandate of the Agency), Support/
secretariat of Appeal boards (where 
foreseen in the Agency mandate), Agency’s 
planning and reporting (annual work 
plan, annual report); Legal officer (directly 
implementing the mandate of the Agency.

66

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYANNEX IX: ANNUAL ACCOUNTS

BUDGET RESULT

EIOPA  only  used  non-differentiated  appropriations.  The 
revenue  was  generated  by  contributions  of  the  national 
supervisory authorities of the Member States and EFTA 
countries, a subsidy from the European Commission plus 
other  income,  especially  from  an  administrative  agree-
ment with the European Commission’s Structural Reform 
Support Service (SRSS). It reached a total of € 25,290,647. 
Expenditure  evaluation  was  determined  by  the  con-
sumption  of  commitment  appropriations  with  a  total  of 
€ 25,367,165 of which payments made from the adopted 
budget  represented  €  21,547,171  and  from  internal  as-
signed revenue € 70,496. Appropriations carried over to 
2019 were equal to € 3,749,498 and added up to the to-
tal expenditure. The outcome was a negative outturn of 
the financial year equal to € 76,518. This was alleviated by 
cancelled appropriations from the carry-over of the previ-
ous year as well as by appropriations available from 2017 
internal assigned revenue. Further, adjustments made for 
foreign exchange rate differences led to a budgetary sur-
plus of € 104,243.

The  budget  implementation  rate  for  commitments  was 
100%. For payments executed from the adopted budget 
it reached a level of 86% which was higher than the target 
set for 2018. The commitments carried forward to the fol-
lowing year achieved a rate of 14.52% (11.71% in 2017). The 
consumption of commitments carried forward from 2017 
was high for payments made in 2018 and reached 96.46%.

At the date EIOPA publishes its Consolidated Annual Ac-
tivity  Report,  EIOPA's  annual  accounts  for  2018  are  un-
dergoing  an  European  Court  of  Auditors'  (ECA)  review. 
EIOPA does not expect any critical remarks necessitating 
changes  to  the  accounts  as  an  outcome  of  that  review. 
The final audit opinion on the reliability of the accounts is 
subject to the results of that review.

FINANCIAL PERFORMANCE  
IN 2018

EIOPA’s annual accounts have been established in accord-
ance with EIOPA’s Financial Regulation and Implementing 
Rules adopted by the Management Board, Title IV Chap-
ter 4 Section 3 and Title XIII of the Financial Regulation 
(EU, Euratom) 2018/1046 of the European Parliament and 
of the Council of 18 July 2018 on the financial rules appli-
cable to the general budget of the European Union, meth-
ods  and  guidelines  as  adopted  and  provided  by  the  Ac-
countant of the European Commission. These rules adapt 
the  International  Public  Sector  Accounting  Standards 
(and in some cases the International Financial Reporting 
Standards)  to  the  specific  environment  of  the  EU,  while 
the reports on implementation of the budget continue to 
be primarily based on movements of cash.

The  accounting  system  of  EIOPA  comprises  general  ac-
counts  and  budget  accounts.  These  accounts  are  kept 
in Euro on the basis of the calendar year. The budget ac-
counts  give  a  detailed  picture  of  the  implementation  of 
the budget. They are based on the modified cash account-
ing principle. The general accounts allow for the prepara-
tion of the financial statements as they show all charges 
and  income  for  the  financial  year  and  are  designed  to 
establish  the  financial  position  in  the  form  of  a  balance 
sheet as at 31 December.

67

ANNUAL REPORT 2018STATEMENT OF FINANCIAL PERFORMANCE

The financial statements below show all income and charges on accrual basis complying 
with the accounting rules of the European Commission. 

The economic result of the year was negative with € 307,157. As a consequence the ac-
cumulated reserves decreased further to reach € 6,274,663 at the date of closure. The 
main reasons for this evolution were non-cash movements such as the high annual amor-
tisation of internally generated software, which comes to an end in 2019. The underlying 
software products capitalised in 2016 are amortised over a useful life of 4 years. At the 
same time, the reserves bound by the appropriations carried over to 2019 compensated 
the effects of such high amortisation so that the decrease of the reserves did not reach 
the level of the previous year.

2018 
AMOUNT IN EUR

2017 
AMOUNT IN EUR

European Union contribution

Other operating revenue

TOTAL OPERATING REVENUE

Administrative expenses

All Staff expenses

Fixed asset related expenses

Other administrative expenses

Operational expenses

Other operational expenses

TOTAL OPERATING EXPENSES

SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES

Financial revenues

Financial expenses

SURPLUS/ (DEFICIT) FROM  
NON-OPERATING ACTIVITIES

9 421 639

15 742 565

25 164 204

-21 253 304

-13 530 181

-2 228 494

-5 494 629

-4 171 312

-4 171 312

-25 424 616

-260 412

1

-46 746

-46 745

9 089 580

14 862 103

23 951 683

– 20 264 194

– 12 979 917

– 2 417 800

– 4 866 477

– 4 621 180

– 4 621 180

– 24 885 374

– 933 691

0

– 25 968

– 25 968

SURPLUS/(DEFICIT) FROM ORDINARY ACTIVITIES

-307 157

– 959 659

ECONOMIC RESULT OF THE YEAR

-307 157

– 959 659

68

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYBALANCE SHEET – ASSETS

The balance sheet presents EIOPA’s assets and liabilities 
on a full accrual-basis.

ASSETS

31.12.2018 
AMOUNT IN EUR

31.12.2017 
AMOUNT IN EUR

NON-CURRENT ASSETS

Intangible assets

Property, plant and equipment

Land and buildings

Plant and equipment

Computer hardware

Furniture and vehicles

Other fixtures and fittings

Property, plant and equipment under construction

Long-term receivables and recoverables

Long-term receivables and recoverables

Long-term receivables and recoverables with 
consolidated EC entities

2 796 477

1 028 203

0

0

169 985

352 878

505 340

0

0

0

0

4 018 814

1 222 064

0

0

142 088

385 162

694 814

0

0

0

0

TOTAL NON-CURRENT ASSETS

3 824 680

5 240 878

CURRENT ASSETS

Short-term receivables

Current receivables 

Sundry receivables

Pre-paid expenses

Deferred charges and accrued income

Short-term pre-financing

Short-term pre-financing

Cash and cash equivalents

TOTAL CURRENT ASSETS

TOTAL

1 472 879

320 755

35 511

0

1 116 613

0

0

3 310 266

4 783 145

8 607 825

1 272 997

242 942

21 750

0

1 008 305

0

0

2 653 400

3 926 397

9 167 275

69

ANNUAL REPORT 2018 
BALANCE SHEET – LIABILITIES

LIABILITIES

31.12.2018 
AMOUNT IN EUR

31.12.2017 
AMOUNT IN EUR

CAPITAL

Accumulated surplus/deficit

Economic result for the year — profit +/loss –

TOTAL

NON-CURRENT LIABILITIES

Provisions for risks and charges

Other financial liabilities

Accrued charges and deferred income

TOTAL NON-CURRENT LIABILITIES

CURRENT LIABILITIES

Provisions for risks and charges

Accounts payable

Current payables

Sundry payables

Accrued charges and deferred income

Accrued charges with consolidated EU entities

Accounts payable with consolidated EU entities

Pre-financing received from consolidated EU entities

TOTAL CURRENT LIABILITIES

TOTAL

6 274 663

6 581 820

 –307 157

6 274 663

1 392 914

602 576

99 601

690 737

1 392 914

940 248

0

940 248

1 361

13 504

819 291

1 849

104 243

104 243

940 248

8 607 825

6 602 320

7 561 979

– 959 659

6 602 320

1 511 736

551 814

92 868

867 054

1 511 736

1 053 219

0

1 053 219

16 846

13 511

849 494

429

172 939

172 939

1 053 219

9 167 275

70

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYCASH FLOW TABLE (INDIRECT METHOD)

The cash flow provides a basis to assess the ability of EIOPA to generate cash and cash 
equivalents, and the needs of the entity to utilise those cash flows. Cash flows are classified 
by operating, investing and financing activities. 

CASH FLOWS FROM ORDINARY ACTIVITIES

Surplus/(deficit) from ordinary activities

-307 157

-959 659

2018 
EUR

2017 
EUR

Operating activities

Adjustments

Amortization (intangible fixed assets)   +

Depreciation (tangible fixed assets)  +

Increase/(decrease) in long-term provisions for risks and 
liabilities

Increase/(decrease) in short-term provisions for risks and 
liabilities

(Increase)/decrease in inventories

(Increase)/decrease in long term pre-financing

(Increase)/decrease in short term pre-financing

(Increase)/decrease in long term receivables and 
recoverables

(Increase)/decrease in Short term Receivables and 
recoverables

(Increase)/decrease in receivables related to 
consolidated EU entities

Increase/(decrease) in value reduction for doubtful debts

Increase/(decrease) in long-term financial liabilities

Increase/(decrease) in short-term financial liabilities

Increase/(decrease) in other long-term liabilities

Increase/(decrease) in other short-term liabilities 
(accrued charges and deferred income)

Increase/(decrease) in short-term payables

Increase/(decrease) in Liabilities related to consolidated 
EU entities

Other non-cash movements

NET CASH FLOW FROM OPERATING ACTIVITIES

1 864 702

363 792

50 762

0

0

0

0

0

-201 274

1 393

0

6 733

0

-176 317

-28 783

-15 492

-68 696

-20 500

1 469 163

1 859 794

558 006

-77 164

0

0

0

4 290

0

-44 790

-1 265

0

6 781

0

-191 234

-22 722

7 630

-95 196

0

1 044 471

71

ANNUAL REPORT 2018CASH FLOWS FROM INVESTING ACTIVITIES

(Increase)/Decrease in intangible assets and property  
plant and equipment

Other proceeds from intangible assets and property  
plant and equipment 

2018 
EUR

2017 
EUR

-812 297

-520 228

0

NET CASH FLOW FROM INVESTING ACTIVITIES

-812 297

-520 228

INCREASE/(DECREASE) IN EMPLOYEE BENEFITS

Net increase/(decrease) in cash and cash equivalents

CASH AND CASH EQUIVALENTS AT THE BEGINNING 
OF THE PERIOD

CASH AND CASH EQUIVALENTS AT THE END OF THE 
PERIOD

656 866

2 653 400

524 243

2 129 157

3 310 266

2 653 400

STATEMENT OF CHANGES IN NET 
ASSETS

NET ASSETS

Accumulated  
surplus/deficit 
EUR

Economic result  
of the year 
EUR

Balance as of 31 December 2017

Other

Fair value movements

Movement in Guarantee Fund reserve

7 561 979

-20 500

0

0

Allocation of the Economic Result of Previous Year

-959 659

Amounts credited to Member States

Economic result of the year

0

0

Balance as of 31 December 2018

6 581 820

-959 659

0

0

0

959 659

0

-307 157

-307 157

Net assets  
(total) 
EUR

6 602 320

-20 500

0

0

0

0

-307 157

6 274 663

72

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYANNEX X: ACCESS TO 
DOCUMENTS REPORT 2018

1. INITIAL REQUESTS IN 2018

Number of received applications and of identified documents, as requested (7) 

Number of applications

Number of identified documents

7

Outcome of the applications in number of documents 

Full disclosure

Partial disclosure

Refusal 

Decision pending 

No existing/possession of document 

Document already publicly available

18

4

0

7

0

2

7

2. CONFIRMATORY APPLICATIONS IN 2018

Number of confirmatory applications and of identified documents, as requested

Number of applications

Number of identified documents

1

Outcome of the applications in number of documents

Confirmation 

Partial revision 

Full revision 

7

0

0

7

.

(7)  An ATD application containing a general request to any documents relating to a specific subject(s) cannot 
be quantified in terms of number of requested documents. Such quantification is only possible with regard to an 
ATD application requesting access to a specific document. Therefore, the figures in this table do not necessarily 
coincide.

73

ANNUAL REPORT 2018ANNEX XI: OPINIONS AND REPORTS 
PUBLISHED IN 2017

DATE

12.2018

07.2018

06.2018

05.2018

DATE

12.2018

12.2018

12.2018

12.2018

12.2018

12.2018

OPINION

Opinion on non-life cross-border insurance business of a long-term nature and its supervision 

Opinion of EIOPA's Mediation Panel

Opinion on disclosure of information to customers about the impact of the withdrawal of the 
United Kingdom from the European Union 
Frequently Asked Questions

Opinion on the solvency position of insurance and reinsurance undertakings in light of the 
withdrawal of the United Kingdom from the European Union

Financial Stability Report December 2018

REPORT

Report to the European Commission on group supervision and capital management with a group of 
insurance or reinsurance undertakings, and FoS and FoE under Solvency II

Seventh consumer trends report

Report on the use of limitations and exemptions from reporting 2018

Report on the evaluation of the structure of insurance intermediaries markets in Europe

Report on the use of capital add-ons 2018

12.2018 

Report on long-term guarantees measures and measures on equity risk 2018

11.2018

11.2018

11.2018

10.2018

09.2018

08.2018

07.2018

07.2018

06.2018

06.2018

05.2018

Peer review of key functions: supervisory practices and application in assessing key functions

Implementation of IORP II: Report on the Pension Benefit Statement: guidance and principles 
based on current practices

European insurance overview

EIOPA’s analysis of IFRS 17 insurance contracts

Activity Report 2016 – 2018 of the Occupational Pensions Stakeholder Group

Understanding cyber insurance – A structured dialogue with insurance companies

Other potential macroprudential tools and measures to enhance the current framework

Failures and near misses in insurance

Financial Stability Report June 2018

Annual Report 2017

First comparative study on market and credit risk modelling

74

EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITYDATE

04.2018

04.2018

03.2018

02.2018

01.2018

REPORT

Oversight activities in 2017

Supervisory Convergence Plan 2018 – 2019 

Solvency II tools with macroprudential impact

Systemic risk and macroprudential policy in insurance

2017 Market development report on occupational pensions and cross-border IORPs

75

ANNUAL REPORT 2018GETTING IN TOUCH WITH THE EU

In person

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You can find the address of the centre nearest you at: http://europa.eu/contact

On the phone or by e-mail

Europe Direct is a service that answers your questions about the European Union. 

You can contact this service 

– by freephone: 00 800 6 7 8 9 10 11 (certain operators may charge for these calls), 

– at the following standard number: +32 22999696 or 

– by electronic mail via: http://europa.eu/contact

FINDING INFORMATION ABOUT THE EU

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EU Publications

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http://bookshop.europa.eu. Multiple copies of free publications may be obtained by contacting Europe 
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EU law and related documents

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versions, go to EUR-Lex at: http://eur-lex.europa.eu

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Data can be downloaded and reused for free, both for commercial and non-commercial purposes.

EUROPEAN INSURANCE AND 
OCCUPATIONAL PENSIONS AUTHORITY

Westhafenplatz 1, 
60327 Frankfurt am Main, German y