High Costs, Unclear Benefits – Insurers Warn of Overload from FiDA
As trilogue negotiations on the Financial Data Access Regulation (FiDA) begin, Germany’s insurance association (GDV) has warned of significant burdens stemming from the planned framework for sharing customer data with third parties.
In the EU’s efforts to enhance competitiveness, Brussels must set clearer priorities. Given the already strained market for IT specialists, resources should be directed towards future-oriented technologies rather than being absorbed by additional regulatory obligations.
“FiDA creates new bureaucracy with no clear benefits for consumers. It ties up resources, stifles innovation, and ultimately drives up costs for customers,” says Jörg Asmussen, CEO of the GDV. “The EU must ask itself whether this is the right path to greater competitiveness and innovation in Europe.”
Questionable Consumer Benefits, High Costs
FiDA aims to facilitate customer access to their financial data and enable its transfer to third-party providers. The European Commission hopes this will spur digital innovation in the financial sector. However, demand for such a system has yet to be substantiated.
At the same time, FiDA threatens to drain vast resources from companies. Implementation would require substantial investments in IT infrastructure, data interfaces, and security measures—funds that are crucial for key transformation projects such as cyber resilience and AI-driven initiatives. Insurers are already committing significant resources to regulatory frameworks like DORA. Additional compliance burdens will further stretch available capacities, particularly for small and medium-sized enterprises.
Risks to Data Protection and Europe’s Competitiveness
The GDV also sees serious risks to data protection and IT security. The transfer of sensitive customer data via standardized interfaces increases exposure to cyberattacks and data misuse. Moreover, FiDA could inadvertently strengthen the market power of non-European players.
“There is a real danger that European financial and insurance companies will become mere data providers for large tech firms, while those same firms face little to no comparable obligations,” warns Asmussen.
Legislative Process Ahead
To finalize the EU Commission’s proposal, FiDA must undergo trilogue negotiations involving the European Parliament and the Council of the EU. A conclusion to the talks is expected under the Danish Council Presidency in the second half of 2025.
