EIOPA Centralised European Database of SII Reporting Data

The use of EIOPAs centralised European database of SII reporting data added value to authorities Marjan Trobina, EIOPA CONSUMER PROTECTION IN NEW ERA INNOVATION VS. REGULATION, AZN, 4 September 2017

Does the topic fits to the conference focus? Innovation can be defined simply as a "new idea, device or method".[1]However, innovation is often also viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs.[2]This is accomplished through more-effective products, processes, services, technologies, or business models that are readily available to markets, governments and society. The term "innovation" can be defined as something original and more effective and, as a consequence, new, that "breaks into" the market or society 2

Does the topic fits to the conference focus? Facts: EIOPA runs the centralised European database (CRDB) that contains SII quantitative reporting data The DB contains all QRTs reported by all insurance undertakings in all EEA countries The reporting data are sent to EIOPA by national competent authorities (NCAs) One of main uses of the DB is to provide added value to NCAs by sending feedback reports to NCAs Why is EIOPA use of the European DB innovative? - It is more a more effective and new process - It "breaks into" the society - It can be explained simply in 15 minutes 3

What added values does EIOPA provide to NCAs? 1. Information exchange in colleges of supervisors 2. Information exchange on cross-border business 3. Peer groups on EEA level and peer groups indicators 4

Information exchange in colleges of supervisors - currently Many non-consistent technical and analytical solutions for exchanging templates and reports NCA 1 GS 1 NCA 2 GS 2 NCA 3 GS 3 Each circle represents a college - Each bubble different group and solo supervisors NSA N GS N 5

Using EIOPA s central repository from October 2017 One consistent technical and analytical solution for all group and solo supervisors EIOPA CRDB NSA GS 1 NSA GS 2 NSA GS 3 NSA GS N 6

Information exchange on cross-border business Exchanged information on FOE and FOS: - Premiums - Claims - Commissions Added value: o Reducing number of data flows from each NCA to each NCA to EIOPA to 31 NCAs o NCAs receive information from one source (EIOPA) instead from up to 30 NCAs o Number of data flows reduced from up to 930 to 31 reduction down to 3,33 % 7

Peer groups on EEA level how are they created Challenge: how to group around 3.000 EEA solo insurers to get e.g. representative medium-sized Life insurer a so called peer group ? Is grouping like a nuclear fusion process? Or is it mathematics underlying clustering techniques? 8

Example of peer groups indicators 9

Final thoughts EIOPA strives to bring elements of innovation into regulatory landscape. Hopefully the phrase Innovative regulation helps protecting consumers will not become an Oxymoron! 10

Thank you for your attention!

Exchange of data on branches and FPSes Insurer A Insurer C Insurer B Data 12