Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Micro and Macroprudential Supervision
IMF Staff Country Reports, July 25, 2025
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- Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Micro and Macroprudential Supervision
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Bibliographic details
- Published: July 25, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229018074.002
Overview
- Focus: Insurance Micro and Macroprudential Supervision in the euro area (EA).
- Context: The institutional framework for insurance regulation and supervision in the EA has evolved gradually, with significant legislative processes still in development at the time of the financial sector assessment program.
- Alignment: The European Systemic Risk Assessment Framework is aligned with the International Association of Insurance Supervisors’ Global Monitoring Exercise but lacks a systemic risk score for individual insurers.
Key findings
- Legislative process status:
- The institutional framework has evolved gradually.
- Significant legislative processes remained in development at the time of the FSAP.
- Systemic risk assessment:
- EIOPA’s European Systemic Risk Assessment Framework is aligned with the International Association of Insurance Supervisors’ Global Monitoring Exercise.
- The framework does not include a systemic risk score for individual insurers.
- Data ownership and constraints:
- Key Solvency II data are owned by National Competent Authorities (NCAs), which can constrain data sharing and systemic risk monitoring within the European System of Financial Supervision.
Policy recommendations
- Legislative reform sequencing:
- The European Commission is advised to consider a temporary pause in legislative reforms after the retail investment strategy is completed and insurance guarantee schemes are harmonized.
- Any future legislative changes should face a high threshold for adoption.
- EIOPA enhancements:
- EIOPA should continue to enhance its European Systemic Risk Assessment Framework, with emphasis on addressing the absence of a systemic risk score for individual insurers.
- Data centralization:
- Centralize Solvency II data collection at EIOPA to improve data sharing and systemic risk monitoring within the European System of Financial Supervision.
Subjects and keywords
- Subjects: Financial institutions; Financial sector policy and analysis; Insurance; Insurance companies; Solvency; Stress testing; Systemic risk.
- Keywords: A. EU insurance regulation architecture; E. climate risk Supervision; EIOPA protection gaps dashboard; Europe; Global; Insurance; Insurance companies; insurance MICRO; risk dashboard; Solvency; Stress testing; Systemic risk.
Source: International Monetary Fund, "Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Micro and Macroprudential Supervision", July 25, 2025.
Content in this bundle
- 1eurea2025005