Context
EIOPA has issued a public consultation on its draft technical advice on minimum common standards for insurance guarantee schemes (IGS) in the European Union. The advice, which includes a detailed technical annex, comes in response to a request from the European Commission.
EIOPA is to provide its final technical advice to the European Commission by 31 August 2026. Article 98 of the Insurance Recovery and Resolution Directive requires the Commission, after having consulted EIOPA, to submit a report to the European Parliament and the Council on the suitability of establishing minimum common standards for insurance guarantee schemes within the European Union.
In line with most recent FCA publications, EIOPA believes that the proposals represent a balanced, proportionate and effective approach – in line with broader efforts to simplify regulation and reduce administrative burdens.
Key points to note and next actions
- Insurance policyholders across the EU face differing levels of protection when insurers fail. This is explained by a patchwork of national schemes that vary widely in scope and coverage—as well as the absence of such schemes altogether in some countries. This, across member states, has led to significantly different outcomes for policyholders after failures, particularly in cross-border cases.
- It is against this backdrop that EIOPA sets out its draft technical advice. The proposals address four main policy areas:
- general questions about the impact of minimum harmonized IGSs
- operational functioning of IGSs
- conditions for effective funding of IGSs and
- interaction between the IRRD and harmonized IGSs.
- For each of these areas EIOPA analysed several policy options and, where possible, presented a preferred option.
- Responses can be made online.