Insurance Europe has published its views on the advice provided to the European Commission by the European Insurance and Occupational Pensions Authority (EIOPA) on key performance indicators (KPIs) for the Taxonomy Regulation.
While agreeing with EIOPA that the KPI for insurers’ investment activities should be based on a ratio of assets and the KPI for underwriting activities based on a ratio of premiums, the industry also has some important concerns about the technical details of EIOPA’s advice.
The industry input to the European Commission makes a number of proposals for improvements and clarifications which would ensure the indicators work in practice and provide a fair and useful view of an insurer’s contribution to sustainable activities. These include clarifying a feasible implementation timeline, the need for the investments KPI to be based on eligible assets and consistent across financial sectors, and for the underwriting KPI to be at the product level.