European Court of Auditors examines the oversight of the insurance sector

EIOPA auditThe European Court of Auditors will examine the work of the European Insurance and Occupational Pensions Authority (EIOPA). The focus of the audit is on the supervision of the insurance market, mainly on the actions taken to bring European Union (EU) practices closer together, as well as on the stress tests that have been carried out using a methodology developed by the regulator.

EIOPA is one of the three European Supervisory Authorities established after the 2008 crisis. The main objective is to ensure effective regulation and supervision of the insurance and pension market in the EU and the protection of consumer interests. It is an independent advisory body for the European Commission (EC), the European Parliament (EP) and the EU Council.

The insurance market in the EU is estimated at 11 trillion. euro in assets, and in some countries its share is over 100% of gross domestic product (GDP), Europe’s auditors write in its release. For that reason, effective oversight is also key to protecting consumer rights and guaranteeing confidence in the sector.

The Court’s plans are to make an “expert analysis” of stress tests. As part of the investigation, national regulators and insurance companies will be questioned.