Insurance Europe therefore responded to the call for evidence by the European Commission on its initiative to reduce reporting burdens. In its response it warns that excessive reporting and other regulatory requirements for insurers, ‘negatively impacts customers, for example through higher costs. It redirects often scarce expertise away from key activities such as risk management or innovation to reporting on them and puts the European insurance industry at a competitive disadvantage internationally’.
Sharing an overview of what it considers excessive reporting for insurance companies, in its response Insurance Europe identified a number of areas where reporting could be reduced or streamlined, including the insurance prudential regulation framework, Solvency II, the conduct of business area, and sustainability.
Insurance Europe also calls on the European Commission to use this current initiative not only, to seek ways to simplify and reduce the existing reporting burden, but to embed the following principles into all current, ongoing and future regulatory initiatives:
- Avoid unnecessary new reporting requirements.
- Ensure changes initiated by the European supervisory authorities are also carefully reviewed and assessed
- Do not create reporting overlaps and duplications
- Always embed proportionality into the requirements
- Always ensure sufficient time is given for implementation
- Avoid over-prescriptiveness and allow flexibility
- Where requested by the industry, provide the necessary clarity and Q&As quickly,
- Conduct thorough consumer-testing
- Ensure a proper and swift correction process for errors identified in Implementing Technical Standards (ITS)
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