## Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Micro and Macroprudential Supervision

_IMF Staff Country Reports, July 25, 2025_

## Source details

**Canonical URL:** [Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Micro and Macroprudential Supervision](https://www.imf.org/en/publications/cr/issues/2025/07/25/euro-area-publication-of-financial-sector-assessment-program-documentation-technical-note-568939)

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## Bibliographic details
- Published: July 25, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229018074.002

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### 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.*

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- **1eurea2025005**
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_Source: https://www.imf.org/en/publications/cr/issues/2025/07/25/euro-area-publication-of-financial-sector-assessment-program-documentation-technical-note-568939_