The National Association of Insurance Commissioners (“NAIC”), the Federal Insurance Office (“FIO”) of the U.S. Department of Treasury, and the European Insurance and Occupational Pensions Authority (“EIOPA”) have hosted the sixth EU-U.S. Forum in Luxembourg.
The NAIC and EIOPA said in a statement that EU and U.S. insurance regulators continued discussions on cybersecurity, cyber insurance, use of big data, and intra-group transactions. Growing cyber threats, increasing power of big data as well as contagion risk from intra-group transactions in multi-national insurance groups are focus areas for risk-based and forward-looking supervision in the United States and the European Union, according to the two organizations.
They added that the Steering Committee of the EU-U.S. Insurance Dialogue Project set the scene for 2019 for further deepening the cooperation and mutual understanding of regulatory approaches and supervisory practices in these evolving and critical areas.
According to the NAIC and EIOPA, the recent EU-U.S. forum served as an important platform to share multiple perspectives on objectives, opportunities, challenges, and risks in these key areas.
“The EU-U.S. Insurance Dialogue Project has led to an enhanced mutual understanding of our respective regulatory frameworks and initiatives in the areas of cybersecurity, cyber insurance, use of big data, and intra-group transactions,” said Katharine L. Wade, commissioner of the Connecticut Insurance Department. “Continued dialogue with our European colleagues in these key areas helps to ensure effective coordinated supervision of cross border insurance groups for the benefit of our policyholders.” Commissioner Wade chairs the NAIC's international committee.
Regulators from the United States and the European Union were joined by representatives from industry and consumer organizations to discuss challenges and opportunities related to cyber risks, the use of big data, artificial intelligence, and intra-group transactions in multi-national insurance groups.
“We particularly welcome cooperation with our American colleagues, building on successful past dialogue and now benefiting from deepening the mutual understanding of supervisory approaches and practices to address fast evolving cyber risks, increasing power of big data and the critical area of intra-group transactions,” said Gabriel Bernardino, EIOPA's chair. “Considering the implications for the operational environment and the business models of insurers, globally, a collective response of supervisors is required to meet our primary objective which is the protection of policyholders and beneficiaries.”
The EU-U.S. Insurance Dialogue Project started in early 2012. At that time the NAIC, FIO, EIOPA, and the European Commission agreed to participate in a deeper dialogue to contribute to an increased mutual understanding and enhanced cooperation between the United States and the European Union. The objective of the project is to promote business opportunity, consumer protection, and effective supervision. The Federal Reserve Bank (“FRB”) has since joined the EU-U.S. Insurance Dialogue Project.