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Reform Support
Enhancing conduct supervision and product oversight of insurance in Portugal banner

Supporting reforms to develop well-regulated, stable and competitive financial markets

Funding Programme
  • 2021

Enhancing conduct supervision and product oversight of insurance in Portugal

The European Commission provided support aimed at strengthening the conduct supervision activities undertaken by ASF, especially on how to incorporate the new challenges posed by regulatory changes and market developments which are changing the industry and impacting the consumer behaviour. The different regulatory changes, particularly related to the new POG requirements introduced under the Insurance Distribution Directive, lead to the need of adaptation of the supervisory practices and procedures in a very demanding context in terms of resources. 


New trends in the insurance and pension funds’ market such as digitalization, sustainability and the need of transparency amid growing complexification of corporate structures pose new challenges to ASF’s (Insurance and Pension Funds Supervisory Authority) regulatory and supervisory approach. ASF is required to upgrade its regulatory and supervisory action in a very swift manner in order to be fully prepared to fulfil its mandate and competences in line with the market developments and European and national priorities in the fields of digitalization and sustainability. 

Support delivered  

The Commission has collaborated with EIOPA to offer Portugal support in the reform of its insurance conduct supervision and in addressing challenges related to the supervision of insurance groups. The project lasted around 18 months, and it entailed the development of enhanced methodologies for the assessment of conduct of business risks within the insurance sector, the analysis of digital distribution trends in the concerned market, and capacity building in the area of group supervision. The Commission and EIOPA also organized interactive training sessions and workshops with peer authorities on conduct of business supervisory methodologies, with a view to promote the exchange of good practices and sharing of experiences.  

Results achieved

The project enabled ASF’s experts and supervisors to adequately and efficiently implement and deploy the necessary tools (e.g., supervisory frameworks, procedures, tools and methodologies) to identify and mitigate risks through the application of applicable standards in the area of insurance conduct supervision, and to strengthen capacity to supervise complex insurance groups. By enhancing its regulatory environment as well as its supervisory capacity, Portugal will contribute to ensuring a higher degree of protection for policyholders that in turn will result in a more efficient, resilient and stable financial sector.