European Commission - Speech [Check Against Delivery] Speech by Commissioner Albuquerque at the German Insurance Association annual reception Brussels, 3 June 2026 Good evening, ladies and gentlemen. Many thanks to Jorg for the invitation to be with you this evening, and to Norbert for the kind introduction. Your invitation suggested that I reflect on what we have done so far under my mandate and what still lies ahea...
European Commission - Speech [Check Against Delivery] Speech by Commissioner Albuquerque at the German Insurance Association annual reception Brussels, 3 June 2026 Good evening, ladies and gentlemen. Many thanks to Jorg for the invitation to be with you this evening, and to Norbert for the kind introduction. Your invitation suggested that I reflect on what we have done so far under my mandate and what still lies ahead. Looking back to where we were this time last year, I have to say I am proud of the progress we have made. We have launched important debates and put forward ambitious reforms that, I believe, can help shape a stronger, more competitive and more resilient European economy at a time when geopolitical developments are increasingly influencing our economic choices, creating both challenges and opportunities. This time last year, we had published our Savings and Investments Union strategy, setting out our vision for a deeper, more integrated and more resilient European financial market. A market that works for people, finances innovation, supports companies throughout their growth journey, and helps ensure that Europe can match its ambitions with the capital needed to deliver them. One year ago, we were preparing the first measures to turn the SIU from a vision into reality. We were finalising our first legislative package on securitisation, on which trilogue negotiations will soon begin. Since then, we have put forward a recommendation on Savings and Investments Accounts and the first European Financial Literacy strategy, which I am pleased to see many Member States are now beginning to implement. We have also finalised the Solvency II delegated act and presented our pensions package - initiatives that can help strengthen long-term savings and investment while creating new opportunities for the insurance sector to contribute to the objectives of the SIU. And at the end of last year, we delivered the Market Integration and Supervision Package, a major step towards a more integrated, simple and efficient European financial market, provided we maintain the level of ambition during the negotiations ahead. If I were to describe all these initiatives in a single sentence, while fully recognising the technical complexity behind them, I would say that they share a common objective: to create an enabling regulatory and supervisory environment that unlocks the full potential of Europe's financial system by reducing fragmentation, removing unnecessary complexity, facilitate cross-border activity and investment, and ensuring that resilience, financial stability and consumer protection remain non- negotiable. We are now also advancing the banking dimension of the SIU. We are currently preparing a report on the competitiveness of the European banking sector, which we intend to publish in July, with legislative proposals to follow in early 2027. Insurance has been an integral part of our work on the capital markets dimension of the SIU, particularly when it comes to supplementary pensions, incentives for long-term investments and reducing unnecessary administrative burdens. But I also hear calls for us to do more for the insurance sector – and I am open to that discussion. The question, however, is whether we are collectively ready to be as ambitious for insurance as we are for capital markets. Are we ready to move towards a truly European insurance market? One where companies can operate seamlessly across borders, where citizens enjoy broader choice and greater access to products, and where scale can support innovation, competitiveness and investment? I ask this question because I firmly believe that building the SIU can only be achieved through a genuine collective effort. The Commission can propose reforms and recommendations, create the right framework and ensure that common rules are respected. But the final decisions rest with the co- legislators, and successful implementation depends on market participants, supervisors and Member States. We need genuine commitment from all sides. Not only agreement on the diagnosis, but also the willingness to act on the solutions. Europe is not short of declarations of support for the SIU. The challenge now is to translate that support into concrete decisions and tangible results. The role of the insurance sector in our vision for Europe is difficult to overstate. With trillions of euros available for long-term investment and a critical role in protecting households and businesses, insurers are uniquely placed to contribute to Europe's competitiveness, resilience and economic security. Let me therefore focus on the steps we are taking to create the right conditions for insurers to invest, innovate and contribute even more effectively to the objectives of the SIU. When we first began developing the SIU agenda, supplementary pensions quickly emerged as one of its key pillars. This is essentially about improving pension sustainability, pension adequacy and the financial well- being of European citizens in retirement. It fully acknowledges Member States' competences and responsibilities for organising their pension systems and does in no way intend to undermine the role of Pillar 1 in European social security systems. But we must also recognise the demographic realities facing Europe. Longer life expectancy, ageing populations and changing labour markets are placing increasing pressure on public pension systems. Creating more opportunities for citizens to complement their retirement savings is therefore not only desirable, it is becoming increasingly necessary. As policymakers, it is our responsibility to ensure that the supplementary pension products are trustworthy, transparent and capable of delivering good long-term returns for savers. But it is equally our responsibility to ensure that the regulatory framework makes it easier for providers to offer such products and for citizens to access them. This is where the insurance sector has a particularly important role to play. Insurers have the expertise, the long-term perspective and the investment capacity needed to help millions of Europeans prepare more effectively for retirement, while simultaneously supporting long-term investment in Europe's economy. This is the idea behind the review of the pan-European Personal Pension Product or PEPP. Our objective is to make the framework more attractive and workable for providers, while maintaining high standards of transparency, cost disclosure and investor protection. At the same time, we must be mindful how our own rules shape the growth opportunities. This is why our pensions package seeks not only to improve retirement outcomes for citizens, but also to support the development of stronger institutional investors capable of operating at scale across Europe. In doing so, we can increase the flow of long-term capital into the European economy while helping citizens build greater financial security for the future. The urgency of reinforcing supplementary pensions is increasingly reflected in policy decisions across Europe, including in Germany's recent reform of its third pillar pension framework this year. However, when it comes to negotiating European solutions, we still encounter significant resistance to change. I fully recognise that pensions are a sensitive and complex topic, and one that deserves careful consideration. But I also hope that, throughout these discussions, we keep the interest of future retirees at the centre of our decisions. Europe's needs to finance growth, innovation and competitiveness have put the broader question of long-term investment at the heart of our work on the review of the Solvency II framework. The revised framework is more proportionate and better reflects both the specific risk profiles of insurers and the long-term nature of their business model. It is also simpler with reduced reporting and administrative requirements, especially for smaller insurers. And we are determined to ensure that the implementing measures remain faithful to that same spirit. Our reform makes it easier for insurers to benefit from the preferential treatment for long-term equity investments, whether listed or unlisted, including private equity and venture capital. In addition, preferential prudential treatment will apply to equity investments made alongside public entities under legislative programmes. We have also improved the risk sensitivity of the prudential treatment of securitisations, introducing substantial changes that can enable insurers to play a greater role in financing the economy while maintaining robust prudential safeguards. The framework is now in place. We have created new opportunities for long-term investment while preserving financial stability and policyholder protection. The next step belongs to the market. EIOPA has been entrusted with monitoring the use of the incentives provided by the revised framework. The Solvency II review is also complemented by the introduction of a new Insurance Recovery and Resolution Directive - the IRRD, which will apply from January 2027. We are working to ensure that implementation goes as smoothly as possible. This includes reducing unnecessary administrative burdens, providing sufficient flexibility where appropriate, and ensuring a gradual and pragmatic transition to the new rules. The framework has been designed to embed proportionality and reflect the diversity of the European insurance sector, and we will work to ensure that implementation remains faithful to that objective. Under the IRRD, the Commission has been tasked with the preparation of a report in early 2027 to assess the appropriateness of minimum common standards for insurance guarantee schemes within the Union. More than half of EU Member States already have insurance guarantee schemes in place - and that number continues to grow. As part of this work, EIOPA is currently consulting on this topic and will provide technical advice to the Commission. The consultation remains open until 26 th of June, and I would encourage all interested stakeholders to contribute if they have not already done so. Ladies and gentlemen, managing risk is at the heart of what you do every day. You are constantly looking ahead, identifying the next challenge and preparing for it. In a rapidly evolving world, those challenges are becoming more numerous, more complex and, in some cases, more severe. As a result, we are seeing growing protection gaps across Europe, situations where economic losses are not covered by insurance. This is increasingly evident in areas such as climate-related risks and cybersecurity, but also in cases where certain groups of citizens struggle to access insurance products, including cancer survivors in remission. These insurance protection gaps are not only created when risks become too large, too complex or too costly to insure. They also arise when people perceive insurance as unavailable, unaffordable or unfair. And when that happens, trust in the system is weakened and resilience suffers. Addressing these challenges requires a collective effort. We have already started engaging with relevant stakeholders to better understand the drivers behind these protection gaps and to identify practical ways to narrow them. I count on the insurance industry, the supervisory community and EIOPA to be active partners in this work. Because ensuring that citizens and businesses can access appropriate protection against the risks they face is not only a question of market development, it is also a question of economic resilience, social inclusion and fairness. Still discussing forward-looking agenda, you probably noticed that I am a strong advocate for digital friendly rules that ensure we can move forward with innovation, rather than against it. That matters because technology is already changing the way people interact with financial services. From how they pay, save and invest, to how they access advice, submit a claim and manage their money. At the heart of much of this progress is data. Through our proposal for a Regulation on open finance, known as FiDA, the Commission is supporting data-driven business models that put citizens in control of how their financial data is used. The transformation in how data is used and shared is happening right now, as we speak. And it will continue to develop, with or without the incumbent players. And this is perhaps one of the most important realities the sector must recognise. Established players are naturally more comfortable with existing structures and business models. Change brings competition, new entrants and new ways of serving customers, and that can create understandable hesitation. But resisting change does not stop it from happening. The future will belong to those capable of creating competitive environments, embracing innovation and offering customers simpler, better and more tailored solutions. Those are the firms that will thrive, attract trust and shape the next generation of financial services in Europe. FiDA also offers a clear business opportunity for insurers. With customer permission, better access to financial data can help insurers develop more tailored products, improve risk assessment, simplify onboarding, and offer services that better reflect people's real needs. Let me conclude with this. As we continue building the SIU, I want the insurance sector to be at the heart of our efforts to support competitiveness. Because a more competitive Europe will require more investment, more protection against risk and more long-term thinking, all areas where insurers have a unique contribution to make. With those thoughts, I hope I have set the scene for our discussion. And I am now delighted to hand over to my old friend, Jörg Asmussen, and to take your questions. SPEECH/26/1255
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