EU-Insurance Watchdog (EIOPA) (Regulation)
The European supervisory authority EIOPA will take on more responsibility for the supervision of insurance companies. In this regard, the establishment of an independent Executive Board may reduce Member States’ ability to interpret EU regulations improperly, to their own advantage. The establishment of an Executive Board will also facilitate the punishment of infringements of EU law committed by national supervisory authorities (NSAs) and allow for more effective resolution of conflicts between NSAs.
In cep’s view, it is also legitimate for the EIOPA Executive Board to be able to examine internal models on its own initiative. However, the new, vaguely worded tasks of EIOPA in relation to “environmental and social factors” and consumer protection, increase the risk of over-regulation. cep also recommends that rulings on settlement decisions relating to internal models should be made, not by the Executive Board, but by the EIOPA Council in which both the Executive Board and the NSAs are represented.