EIOPA has launched today the second series of consultations regarding its proposed report on biodiversity risk management, as well as on five legal instruments to reflect the changes expected to be introduced to the regulatory framework as part of the Solvency II review process.
The six consultations issued today cover topics ranging from biodiversity risk, sustainability risks and sustainability plans, diversity in insurers’ administrative, management or supervisory bodies, as well as updates to some existing guidelines and technical standards. The findings of the report and the five legal instruments will guide the implementation of the new features within the Solvency II framework to improve risk management and financial stability in the EU’s insurance sector.
EIOPA invites stakeholders to provide their feedback on the consultation papers listed below by responding to the questions via the online surveys no later than 26 February 2025. All responses will be published on EIOPA’s website unless otherwise requested.
- Consultation on a report on biodiversity risk management
Biodiversity loss can result in significant economic risks, affecting the value of investments, the frequency and intensity of insured losses, and the overall risk profile of insurers’ portfolios. EIOPA has identified a significant investment exposure in the insurance sector to assets dependent on nature and ecosystem services, which may indicate an exposure to biodiversity risks.
Considering these economic and financial impacts and dependencies on biodiversity, EIOPA proposes for consultation a report which looks at how insurers identify, measure and manage biodiversity risks, and assesses undertakings’ own risk and solvency (ORSA) practices. It aims at engaging supervisors and the insurance sector to adequately identify and address biodiversity loss risks.
Go to the consultation
- Consultation on Regulatory Technical Standards on management of sustainability risks including sustainability risk plans
In its proposal, EIOPA aims to limit the burden on undertakings and establish a coherent and proportionate approach to sustainability risk management. In this regard, the proposed Regulatory Technical Standards integrate the sustainability risk plans into existing risk management practices of undertakings, connect their sustainability plans with their transition plans, while allowing undertakings to disclose sustainability risks in a consistent and efficient manner.
The draft Regulatory Technical Standards specify the minimum standards and reference methodologies for the identification, measurement, management, and monitoring of sustainability risks, the elements to be covered in the plans, the supervision and disclosure of relevant elements of the plans.
Go to the consultation
- Consultation on guidelines regarding the notion of diversity for the selection of the members of the administrative, management or supervisory body
EIOPA’s proposed Guidelines define the notion of diversity to help insurance and reinsurance undertakings to put in place a policy promoting diversity for the selection of members of their administrative, management or supervisory bodies, as well as the quantitative objectives related to gender-balance.
Go to the consultation
- Consultation on revised guidelines on undertaking-specific parameters
The revised Guidelines include amendments to correct legal references and to clarify and streamline the text without changing its intended meaning. In particular, three Guidelines are deleted because their content is sufficiently clear from the legal provisions of Solvency II.
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