The European Insurance and Occupational Pensions Authority (EIOPA) has proposed changes to the disclosure requirements in place for insurers under the EU Taxonomy framework, which aim to simplify reporting and better align with other sustainable finance frameworks.
EIOPA proposals include:
- Updating the ‘underwriting KPI’ by narrowing the denominator in the Taxonomy and Eligibility ratios to Taxonomy-eligible lines of business
- Standardising how eligible activities are calculated in the numerator, by requiring a split of premiums that cover only natural catastrophe perils and only including contracts with such coverage
- Introducing a new ‘Green Insured Activities KPI’ to measure the ratio of Taxonomy-aligned insured activities
- Removing disclosures on the breakdown of gas and nuclear activities and giving more prominence to Taxonomy disclosures within insurance undertakings’ annual reports
- Streamlining group reporting to focus on the parent company’s ‘main business’ rather than reporting weighted averages for all business segments
A public consultation on the proposed revisions is open until 12 August.
