IMF Staff Country Reports

This Technical Note focuses on Insurance Micro and Macroprudential Supervision in the euro area (EA). 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. To ensure effective implementation, 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, setting a high threshold for any future changes. The European Insurance and Occupational Pensions Authority (EIOPA) should continue to enhance its European Systemic Risk Assessment Framework, which is aligned with the International Association of Insurance Supervisors’ Global Monitoring Exercise but lacks a systemic risk score for individual insurers. Centralizing Solvency II data collection at EIOPA is recommended to improve data sharing and systemic risk monitoring within the European System of Financial Supervision, as the current ownership of key data by National Competent Authorities can be a constraint.