EIOPA Supervisory Statement On Exclusions In Insurance Products Related To Risks Arising From Systemic Events

In late August 2022, the European Insurance and Occupational Pensions Authority (EIOPA) published a draft supervisory statement on exclusions related to systemic events and held a public consultation on the draft statement. In late September 2022, they published a feedback statement summarising the main findings of the consultation and a resolution of comments paper outlining the individual comments they received and their responses to the comments. The supervisory statement is now in final form.

The supervisory statement notes that a systemic event is any severe event that causes broad-based disruption and significant adverse effect on public health, public safety, national security or the economy. This was quite a timely publication given the events of the Covid-19 pandemic and Russia's invasion of Ukraine. EIOPA notes that as the frequency of systemic events increases, there is a risk that insurance products covering them become unaffordable or unavailable. At