CBI publishes communication on Data Ethics within Insurance (see here)
On 2 August 2023, the CBI published a report on the use of big data and related technologies in the insurance industry following the survey of 12 insurers across the life, non-life, health and reinsurance sectors as part of its Data Ethics Within Insurance Project (the Report). The Report found that most insurers are already using big data for pricing and underwriting and are looking to expand its use to sales, distribution and marketing activities. The Report also highlighted the benefits, risks and areas of focus for (re)insurers of the use of big data and related technologies.
Our article 'Big data: A big opportunity for insurers, but what about customer ethics?' provides further detail on the Report and is available here.
Road Traffic and Roads Act 2023 (see here)
The Road Traffic and Roads Act 2023 was partly commenced on 31 July 2023. The Section of the Act requiring vehicle insurers and intermediaries to share data on policyholders with the Motor Insurers' Bureau of Ireland (MIBI) took effect on this date. Going forward, members of An Garda Síochána will be able to access the MIBI database through new number plate recognition technology and mobility devices to identify vehicles being driven without insurance.
Other provisions of the Act, that have yet to be commenced, include the classification of e-scooters as a new category of vehicle called 'personal powered transporters' and the requirement for drivers of e-mopeds to have insurance.
ESA’s Joint Board of Appeal dismisses appeal by Euroins Insurance Group AD against the European Insurance and Occupational Pensions Authority (EIOPA) (see here)
On 3 August 2023, the Joint Board of Appeal of the European Supervisory Authorities unanimously denied an appeal brought by the Euroins Insurance Group AD against EIOPA as inadmissible. Euroins requested the board to annul an EIOPA report arguing that EIOPA acted in excess of its regulatory powers and infringed Euroins rights under domestic law as well as the principles of proportionality, independence, objectivity and transparency. The board found that the EIOPA report had no legally binding effect on national authorities and accordingly couldn’t be challenged. However, the board concluded that Euroins could challenge the decisions of national authorities or court decisions that were adopted based on the EIOPA report.
Macro risks top insurers’ worry list according to EIOPA’s Insurance Risk Dashboard (see here)
EIOPA published its Insurance Risk Dashboard based on Solvency II Data for Q1 2023 on 31 July 2023. A key observation was that exposure to macro-related risks remain among the most relevant risks for the European insurance sector. Risk levels across other sectors stayed broadly constant, with all risk categories pointing to medium risk with the exception of macro risks. ESG related risks and digitalisation and cyber risks also displayed an increasing trend.
EIOPA appoints Teija Korpiaho to management board (see here)
On 17 August 2023, EIOPA announced the appointment of Teija Korpiaho, Chief Adviser of Insurance Supervision at the Finnish Financial Supervisory Authority, to its management board. Ms. Korpiaho has been appointed for a two and a half-year term, which commenced on 31 July 2023. EIOPA’s management board consists of EIOPA’s Chairperson, six representatives of national supervisory authorities and a European Commission representative. It aims to accomplish EIOPA’s mission and ensure completion of the tasks assigned to it.
EIOPA publishes technical information updates
EIOPA published its monthly technical information on 3 August 2023 regarding the relevant risk-free interest rate term structures with reference to the end of July 2023, for Solvency II purposes. This technical information is used for the calculation of technical provisions for (re)insurance obligations. On the same date, it also published technical information on the symmetric adjustment of the equity capital charge under Solvency II with reference to the end of July 2023.
Keynote speech of EIOPA Chairperson, Petra Hielkema, at the Croatian Financial Services Supervisory Authority (HANFA)
On 29 August 2023, EIOPA Chairperson, Petra Hielkema, addressed the attendees at the Croatian Financial Services Supervisory Authority Conference on ‘Insured Risks in Uncertain Times’. Petra Hielkema’s speech centred on natural catastrophe risk and sustainable financial disclosures. Notably, insurers are reminded to ensure that their sustainability disclosures are carefully and correctly identified in order to avoid greenwashing and to build trust in the insurance sector.
Looking ahead, Ms Hielkema touched on the European Parliament’s review of Solvency II and the agreement on a proposal for an Insurance Recovery and Resolution Directive, both of which are due to move to the trialogue negotiation phase of the legislative process this Autumn.