The European Insurance and Occupational Pensions Authority (EIOPA) will in 2019 work on supervisory convergence in the pensions sector regarding the implementation of the IORP II Directive.

EIOPA has published its 2018 Supervisory Activities Report, the first annual report on the supervisory activities conducted in the past year, in accordance with the Solvency II Directive.

The report sets out the priorities for 2019, one of which is “the promotion of supervisory convergence in the European pensions sector regarding the implementation of IORP II”.

EIOPA will also focus on supervisory activities including work on conduct of business supervisory practices under the Supervisory Handbook, analysis of the consistency of technical provisions best estimate calculation and analysis of the supervision of run-off undertakings.

Furthermore, EIOPA will improve the follow up of EIOPA recommendations addressed to NCAs and continue to assess supervisory practices in general and on a thematic basis to foster supervisory convergence and consistent, high quality supervisory practices among NCAs for the benefit of the European citizens.

The report outlined that in 2018, EIOPA developed the Common framework for assessing conduct risk through the product's lifecycle to identify drivers and implications in the “emergence of consumer detriment”.

It also issued the Opinion on non-life cross border insurance business of a long-term nature and its supervision to address specific cross-border situations, where evidence has shown that not all market players might be properly and prudently calculating the Technical Provisions and therefore could be jeopardising the policyholders of the host country.

In addition, EIOPA has used cooperation platforms to ensure timely identification of preventive measures resulting in successful implementation of recovery measures and has issued two opinions relating to Brexit to ensure service continuity and consistency in supervisory approaches – namely on the disclosure of information to customers and on risks to the solvency position of (re)insurance undertakings.

EIOPA also concluded three peer reviews: The principle of proportionality when assessing key functions, The supervisory assessment of fitness and propriety and The application of the prudent person rule for the supervision of occupational pension funds.

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