What is EIOPA
The European Insurance and Occupational Pensions Authority (EIOPA) is an independent EU authority that promotes a sound regulatory framework and consistent supervisory practices and contributes to the public confidence in the European Union’s insurance and occupational pensions sectors.
Why we need insurance and pensions
- Support the financial health of people
Both insurance and pensions support the financial health of people, enabling them to better prepare for and recover from financial shocks.
- Peace of mind and protection
Insurance provides people and businesses with peace of mind and protection against foreseen and unforeseen risks. Without insurance, all economic activity ceases. It is a safety net that enables people to take risks and try new things. Insurance benefits society by offering financial security, promoting economic growth and enhancing social welfare. Insurance enables a swifter economic recovery following natural disasters, such as flooding.
- Financial security in old age
Pensions provide people with financial security in old age. They promote independence, economic growth, social stability and fairness across society.
- Fuel Europe’s green and digital transformation
Insurance and pension funds are also Europe’s largest institutional investors, together managing assets of around approximately EUR 12 trillion. They have the power to fuel Europe’s green and digital transformation and deepen Europe’s Capital Markets Union.
Facts and figures
- 12 trillion of assets
Together insurers and pension funds manage approximately EUR 12 trillion of European assets
- >92%
More than 92% of people in Europe have an insurance policy.
- 25 million
More than 25 million people in Europe pay into an occupational pension
Where we can work together: six key policy areas to consider
Insurance protection gapProtection gaps occur when economic losses exceed the losses covered by insurance. In Europe, natural catastrophe and climate, along with cyber are two of the biggest protection gaps. For example, only a quarter of climate-related losses insured in the past.
Pension gaps and Capital Markets UnionNot enough people are saving for their retirement. Only around 45% of people are confident they will have enough money to retire and almost 20% of people are at risk of poverty in old age. EIOPA has identified some key areas of work that can help to close pension gaps and strengthen the Capital Markets Union, such as pension tracking systems and dashboards, as well as auto enrolment.
> Find out more about how we can work together to reduce the pensions gap
Sustainable financeThe importance of sustainability has meant that there are now a large number of regulations that insurers and pension funds have to comply with. Monitoring the implementation – including analysing data reported by large insurers – will help to make sure that sustainability risks are identified, assessed and managed for the benefit of policyholders and beneficiaries in the long term.
> Find out more about EIOPA's work to ensure a more resilient and sustainable
financial system
Digitalisation, AI and data sharingIncreasing amounts of data combined with rapid technological advances are changing how people look at their financial life and how insurance companies work. For example, many insurers use artificial intelligence (AI) for pricing, selling and distributing products, as well as for customer service and handling claims.
Consumer protectionAccess to insurance differs across Europe. EIOPA continues to see examples of insurance and pension products offering inadequate cover and/or poor value for money. Further, many consumers are not aware that similar insurance products have different coverage and costs from country to country. Consumer protection is at the heart of EIOPA’s work.
> Find out more about EIOPA’s work in this area, including on product oversight and value for money
EU supervision and convergenceEIOPA ensures that supervisory standards are applied consistently across the EU through the implementation of convergence tools, including the use of all supervisory tools and powers at its disposal. While progress has been made in supervising cross-border business, recent experiences as well as the expected continuous growth of cross-border business has highlighted the need for more adequate supervisory tools at EU level. Policyholders should be able to expect the same level of protection no matter which country they live in or from which country they bought their policy. Unfortunately, this is not always the case.
>Find out more about what EIOPA is doing to ensure that policyholders are treated fairly and equally
How we keep the sectors well regulated and supervised
Through our work – independently and with national supervisors – we make sure that:
- Insurance companies are well managed and have enough money to pay claims [Solvency II Directive]
- Insurance policies are sold/distributed according to certain standards and insurance distributors act in the best interests of their customers [Insurance Distribution Directive (IDD)]
- Occupational pensions are well managed, with clear information provided to beneficiaries [IORP II Directive]
- The EU supervisory community acts in line with agreed standards aiming at consistent protection of consumers around the EU.
We also make sure that the specific needs of consumers as well as the specificities of our sectors are well reflected when it comes to new (and upcoming) horizontal regulations, such as:
- The Artificial Intelligence (AI) Act
- The Sustainable Finance Disclosure Regulation (SFDR)
- The Financial Data Access regulation (FIDA)
- The Data Sharing Regulation
In the future we will also need to make sure that:
- The Digital Operational Resilience Act (DORA) is operating effectively to protect the financial system from cyber threats; and
- The Insurance Recovery and Resolution Directive (IRRD) is implemented to protect policyholders, financial stability and taxpayers in the event of an insurer’s failure.
How EIOPA works
EIOPA is an independent advisory body to the European Commission, the European Parliament and the Council of the European Union. It is one of the EU Agencies carrying out specific legal, technical or scientific tasks and giving evidence-based advice to help shape informed policies and laws at the EU and national level.
Related resources to learn more
- Find out more about EIOPA's strategy 2023-2026
If you want to know more about insurance and pensions in Europe and what do people think about insurance and pensions in your country, take a look at EIOPA’s latest consumer trends report and Eurobarometer research