Insurers Highlight Extensive Need for Revisions to the FiDA Regulation
With the adoption of the position on the Financial Data Access Regulation (FiDA) by EU ambassadors today, the Council of the European Union is now prepared for trilogue negotiations. Insurers, however, continue to see significant need for revisions to the proposed regulation.
“Despite the Council’s adjustments, FiDA remains a critical concern. We need a legal framework that provides tangible benefits to policyholders and fosters digital transformation,” emphasizes Jörg Asmussen, Chief Executive Officer of the German Insurance Association (GDV).
FiDA seeks to grant selected financial service providers and third parties access to customer financial data to drive digital innovation. The GDV has expressed scepticism, citing the significant resources the regulation would require without delivering clear advantages for customers. Insurers have identified continuous real-time data provision as a key cost driver. “The infrastructure necessary for such data sharing would be prohibitively expensive and would far exceed the anticipated benefits,” Asmussen explains.
Need for Refinements in Phased Implementation
The GDV welcomes the Council’s proposal for a phased implementation of FiDA based on product categories. However, it criticizes the decision to include the motor vehicle insurance sector in the initial phase. “The volume of data in the motor vehicle sector, with approximately 133 million contracts, is enormous. Transitional arrangements are essential to prevent undue burdens and ensure data is prepared in compliance with FiDA,” notes Asmussen. Additionally, the GDV argues that each phase should be followed by a thorough review to assess the need for adjustments.
Overly Broad Scope of Application
The exclusion of occupational pensions from FiDA’s scope is viewed by the GDV as a positive step. Nonetheless, insurers are calling for further exclusions, such as state-subsidized private pension products, including Riester and basic pensions, as well as accident insurance. “Accident insurance frequently involves highly sensitive health data, which must not, under any circumstances, be included in FiDA,” warns Asmussen.
Legislative Process Moving Forward
The Economic and Monetary Affairs Committee of the European Parliament also granted its expected mandate for trilogue negotiations today. These negotiations are anticipated to begin in early 2025 and could conclude by the second quarter of the year. As a regulation, FiDA will be directly applicable in all member states.
