For over two years, the EU Action Plan on Financing Sustainable Growth has formulated and adopted extensive requirements for financial services providers. Insurers are particularly affected. Some requirements, including reporting, must be met from 2021. Others, for example, those relating to the annual report, will be added in accordance with the Taxonomy Regulation from 2022.
These changes are not only driven by the European (EIOPA) and German (BaFin) supervisory authorities. With the increasing expectations of stakeholders - especially the public, customers and shareholders - there is a social revolution in terms of sustainable finance and financial services.
Societal and regulatory demands also lead to time pressure: Significant operational burdens on data, reports, methods and processes are challenging. At the same time, a strategic approach to sustainability that fits the business model should also bring added value and competitive advantage.
The importance of compliance measures is also increasing with regard to both international and national regulatory requirements. Political pressure also leads to additional requirements for the compliance management system of an insurance company. A long-term effective compliance management system and a robust compliance function at the business entity have become fundamental building blocks for success in the insurance industry.
Continuously changing the set of potentially relevant standards, coupled with the existing limitations of personnel capacity and experience, means that implementation and management are barely possible without involving external sources of information and system-based support. A systematic approach with automated solutions is necessary to efficiently meet increasing regulatory requirements.
With our many years of experience and the latest technologies, we are happy to support you in all matters related to compliance issues with insurers. Please get in touch with us.
Partner, Financial Services
KPMG AG Wirtschaftsprüfungsgesellschaft