EIOPA Outlines Vision for Smarter Regulation to Boost EU Competitiveness

The European Insurance and Occupational Pensions Authority (EIOPA) has unveiled its comprehensive approach to regulatory simplification and administrative burden reduction, aiming to strengthen European competitiveness while safeguarding consumer rights and financial stability across the Single Market.

In its statement published today, EIOPA emphasized the urgent need for a more harmonised and efficient regulatory environment amid evolving global uncertainties and a shifting geopolitical landscape. The authority called for “smarter, not weaker” regulation — one that balances simplification with effective EU-level supervision and long-term strategic coherence.

“Regulatory simplification and burden reduction is important and possible. Yet, it should be viewed as a means to an end, not the end itself,” said Petra Hielkema, Chair of EIOPA. “The ultimate goal is a resilient and competitive European economy, where businesses can thrive, consumers are protected, and stability is ensured.”

A Strategic Pillar for Growth

EIOPA believes regulatory reform can be a catalyst for growth if it eliminates fragmentation and national divergence. Simplification efforts must be EU-centric, avoiding the risk of transferring burdens to national regulators or creating new obligations in place of reduced EU ones.

To this end, EIOPA advocates for early engagement in the legislative process and greater harmonisation of mandates that currently vary across Member States. The authority is also pushing for stronger supervisory convergence and consistent enforcement, especially in areas such as cross-border supervision.

Actions Already Underway

EIOPA highlighted a series of internal initiatives already contributing to streamlined regulation, including:

• Simplified Solvency II guidelines

• Reduced reporting requirements and data points

• Broader application of proportionality principles

• Less frequent stress testing for insurers and pension funds

• Streamlined product disclosure and sales processes

A Measured Approach to Sustainability

On the sustainability front, EIOPA will support the European Commission’s efforts to simplify reporting frameworks while ensuring that insurers and pension funds maintain access to reliable and standardised climate-related data. This is vital for managing emerging climate risks effectively.

Strengthening Supervision Alongside Simplification

EIOPA stressed that simplification must not weaken supervisory oversight. The authority will evaluate what data is genuinely necessary for its monitoring functions and support the Commission in developing proportionate rules that support both stability and competitiveness.

As the EU aims to build a greener, more competitive economy, EIOPA’s vision reinforces the need for intelligent regulation that empowers businesses, protects citizens, and upholds the integrity of the financial system.

At Ez-XBRL, we continue to closely monitor regulatory developments to help our clients remain proactive and prepared. Our financial reporting solutions are built to streamline compliance and reduce reporting complexity.

To find out more details please visit :www.eiopa.europa.eu