"Our objective is to ensure that market players put in place sound governance mechanisms, have a robust solvency position and treat consumers fairly. Our aim is to protect consumers from unfair and abusive business practices by identifying tangible risks at an early stage and to ensure that these risks are adequately tackled before fully materialising. Our approach is to promote the orderly functioning of markets resulting in a level playing field, healthy competitive and innovative environment, increased consumer confidence and guaranteeing financial stability," he explained for the audience.
In his speech, BERNARDINO described the EIOPA's strategy to strengthen conduct of business supervision, as well as the authority's current activities that will bring tangible and positive outcomes for consumers. In the end, he also has addressed the challenges of the digitalisation era for the insurance industry. In this regard, he stressed out that changes brought at a fast pace by digitalization "will impact on the whole value chain - insurers, intermediaries, distributors and service providers. We will see business models being threatened and new entrants implementing business models that will dramatically reduce the traditional frictional costs." To prevent unwanted effects, "industry and regulators need to constantly adapt to the global environment in which consumers live."
Read here the full speech given by Gabriel BERNARDINO.