Eumedion generally supports EIOPA proposals on the integration of sustainability factors at insurers
Eumedion generally supports the proposals of the European Insurance and Occupational Pensions Authority (EIOPA) with respect to the integration of sustainability risks and factors in the investment policy of insurers. This follows from Eumedion’s response to the EIOPA consultation paper that was submitted today.
EIOPA has been asked by the European Commission to provide advice on how insurers can integrate sustainability risks and factors into the investment policy. Generally, EIOPA's proposals can count on Eumedion's support. Eumedion believes that insurers must take into account all risks, including sustainability risks. Eumedion agrees with EIOPA that insurers must take into account the potential long-term impact of investment decisions on environmental, social and governance factors. Eumedion believes that insurers should periodically discuss the possibilities and developments in the area of socially responsible and sustainable investment with their policyholders and beneficiaries. Eumedion has reservations, however, regarding EIOPA's proposal on the basis of which insurers will be required to (where relevant) reflect the preferences of policy holders and beneficiaries in their investment portfolio. According to Eumedion, such a requirement may be at odds with the fiduciary duty of insurers that provide general portfolio investment products.