Sustainable finance

Sustainability, in particular efforts to address climate change and biodiversity loss, are important drivers of regulatory developments. The EU has committed to reach the goals of the Paris Agreement and the UN’s 2030 Sustainable Development Goals. The required actions for the financial sector to achieve this ambition were reflected in the European Commission’s 2018 Sustainable Finance Action Plan, including CSRD, and its 2021 Renewed Sustainable Finance Strategy.

Digital finance

The trends toward digitisation and the use of big data have a large impact on regulatory developments. Digital finance, in particular, is an important driver for legislative initiatives. On the one hand, the aim is to ensure that customers have access to innovative financial products while at the same time, preserving customer protection and financial stability.

In view of this, the European Commission presented its Digital Finance Package. Embracing digital finance is expected to unleash innovation and create opportunities to develop better financial products for customers. Digital finance also cuts across borders, therefore potentially enhancing the integration of financial markets.

Financial crime and anti-money laundering developments

The European rules and regulations regarding anti-money laundering (AML) have increased substantially over the past decade. Geopolitical developments such as the war in Ukraine and the subsequent sanctions have also illustrated the importance of robust AML regulations. In 2021, the European Commission (EC) published several proposals to reform AML regulations. With this package, the EC aims to strengthen the EU’s AML and countering of terrorism rules.

Ongoing financial reforms

Financial regulation is subject to constant, incremental change and is influenced by developments in financial markets and society. Important examples for the insurance sector include the proposed changes to the Solvency II framework, following the 2020 review of the Solvency II Directive, which is discussed in more detail in section 3.6.3 and section 7.3.5, as well as the introduction of the European Insurance Recovery and Resolution Directive (IRRD). On Solvency II and the IRRD a political agreement was reached in December 2023. The text of both directives is being finalised in the beginning of 2024, after which a final approval by the Council and the European Parliament is expected in April 2024. Similar to the Dutch Act on recovery & resolution of insurers (Dutch R&R Act) the IRRD aims to ensure that (re-)insurance companies that run into financial difficulties are better prepared to recover and limit losses for policyholders and beneficiaries. After the adoption and official publication of the IRRD, the Dutch R&R Act will need to be brought in line with the IRRD.

EU New Consumer Agenda

The European Commission intends to empower customers to play an active role in the sustainability transition, as well as the digital transition. The digital transition is rapidly changing customers’ lives. By promoting measures for a greener, more digital and fairer single market, the aim is to boost trust among customers. In addition, there is an ongoing trend toward customers protection and resilience. For these reasons, the EC published the EU New Consumer Agenda. This Agenda aims to facilitate customers to benefit fully from the single market and to empower them to make informed decisions.

a.s.r.’s response

a.s.r. actively monitors regulatory developments in order to anticipate changes to the regulatory environment. Where appropriate, a.s.r. adapts its organisation accordingly, and identifies and seizes opportunities resulting from such changes. For example, significant efforts are undertaken to enhance a.s.r.’s sustainability risk management and sustainability reporting, including CSRD. a.s.r. is also strengthening its operational resilience and IT risk management in order to prepare the organisation for further digitisation.

a.s.r. supports the goals of the EU Consumer Agenda to empower European consumers to play an active role in the green and digital transitions and to increase customers protection and resilience. In addition to the EU Consumer Agenda, the European Commission’s Digital Finance Strategy sets out general lines on how Europe can support the digital transformation of finance, while regulating its risks. Embracing digital finance would unleash European innovation and create opportunities to develop better financial products and services for customers. EU Consumer Agenda and Digital Finance Strategy are therefore complementary and should reinforce each other. a.s.r. considers the goals of the EU Consumer Agenda and Digital Finance Strategy to be in line with its own strategy, including its sustainability strategy, in which financial inclusion, financial self-reliance and financial well-being play an important role. Reference is made to section 2.5.3.

a.s.r. Is keeping a close look on further developments concerning anti-money laundering and ongoing financial reforms and will comply with subsequent legislation.