The European Insurance and Occupational Pensions Authority (EIOPA) has published its advice regarding the review of disclosures for (re)insurance undertakings under the EU Taxonomy Disclosures Delegated Act. Following a formal request from the European Commission, the supervisory authority proposed updates intended to simplify reporting rules while preserving reliable and comparable data on sustainable insurance activities.
Proposed Updates to the Underwriting KPI
To address inconsistent reporting across the sector, EIOPA proposed renaming the current Underwriting Key Performance Indicator to the Adaptation Underwriting KPI to clearly indicate its focus on climate change adaptation.
The proposed standard calculation for the numerator requires reporting only relevant contracts and accounting strictly for the portion of gross written premiums or insurance revenue directly linked to climate-related perils. Furthermore, the denominator would be restricted to eight eligible lines of business, or alternatively allow selected lines provided the three most relevant to climate adaptation are included.
EIOPA also recommended removing gas and nuclear activity breakdowns from insurance reporting templates, noting that these details are not material to underwriting or investment activities. Consideration of a potential Green Insured Activities KPI should be delayed for five years.
Cross-Sectoral Recommendations and Group Disclosures
Regarding the combined KPI used to evaluate exposures to insurance undertakings, EIOPA proposed replacing the existing weighted average calculation with either the Investment KPI or Underwriting KPI, depending on which is most relevant to the business activity.
Together with the European Banking Authority and the European Securities and Markets Authority, EIOPA advised against introducing an Operational Expenditure KPI for financial entities, even on a voluntary basis.
For group-level reporting, the European Supervisory Authorities recommended requiring full disclosures for the parent entity alongside simplified reporting for material subsidiaries, while utilizing the parent undertaking's KPI rather than a weighted average to calculate group exposure.
Background and Consultative Process
The advice was developed after the European Commission invited technical input from EIOPA, EBA, and ESMA to improve and simplify the Disclosures Delegated Act under the EU Taxonomy Regulation. EIOPA finalised its positions following a public consultation held between 1 July and 13 August 2026.
