📋 Tender Overview
The European Insurance and Occupational Pension Authority EIOPA launched a public consultation on a Discussion paper on reinsurance value chain and new business models arising from digitalisation.Technology continues to evolve bringing new opportunities social change and new expectations for consumers. In response insurance undertakings and intermediaries continue to develop and revise their business models often in increased co-operation with third parties e.g. BigTech companies and start-ups bringing both beneficial innovation and a new set of emerging risks that have to be taken into account.These changes in firms reliance on outsourcing and third parties bring potential benefits and opportunities. They are expected to transform the way products and services are provided with benefits for consumers in terms of products and services that are better targeted to consumers needs of a better quality or that are more cost-effective and insurance undertakings for instance in terms of more efficient processes and decision-making or better fraud detection and management of risks.However it may also create new conduct and prudential risks and amplify or relocate significantly old risks e.g. operational risk Information and Communication Technology risks security governance and reputational risks consumer protection. It can also lead to legal and compliance issues e.g. data protection and compliance with outsourcing rules and regulatory perimeter issues. The widespread use of third party providers can also lead to concentration risk if a large number of undertakings become dependent on a small number of dominant outsourced or third party service providers.In this context a possible fragmentation of the insurance value chain could occur including most pertinently a potential for a reduced regulatory and supervisory grip on the relevant activities in the value chain or ways in which the lengthening of the value chain stresses existing regulatory and supervisory oversight. The goal of the public consultation is therefore to get a better picture on possible fragmentation of the European Unions insurance value chain and supervisory challenges related to that in order to plan for next steps.The deadline for submission of feedback in EU Survey Tool is 7 September 2020.EIOPA will work further on this together with national competent authorities on supervisory responses to further support supervisors and supervisory convergence while maintaining a strong and open dialogue with the market and other stakeholders.
