In a world of geopolitical uncertainty, Europe must make every effort to increase its competitiveness. The European Commission's Financial Data Access (FIDA) framework - which aims to regulate the sharing of data in the financial services sector - must contribute, not undermine, this effort.
In its explainer published today, Insurance Europe suggests that FIDA can only succeed if it is built on a framework based on the following:
➡️ Simplification is essential: Including a broad range of insurance products in the initial scope of FIDA would complicate implementation and increase red-tape and costs. Insurance Europe therefore urges the EU's co-legislators to take a step-by-step and evidence-based approach.
➡️ Clarity on the scope of data is critical: The current FIDA proposal lacks clarity regarding what types of data will be excluded from mandatory sharing. This creates the risk that insurers could be required to disclose highly sensitive information.
➡️ A realistic timeline is necessary: To design and implement data-sharing schemes, common technical standards, governance models and consumer permission dashboards in the proposed timeline of just 18 months is unrealistic.