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Reform Support
© EU

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

Funding Programme
  • 2019

Improvement of risk based supervision in the insurance sector for the Croatian Financial Services Supervisory Agency (HANFA)

The Commission supported the Croatian Financial Services Supervisory Agency (HANFA) to improve its risk-based supervision of insurance undertakings. As a result, HANFA can enhance prudential supervision through new manuals and processes across the core topics of Solvency II and thereby better protect policyholders.


The revised Solvency II regulatory framework[1] is in force since 2016. A harmonised application of the risk-based supervision has been one of the core objectives for the European Insurance and Occupational Pensions Authority (EIOPA). The support enables HANFA to engage in early stage supervisory intervention through better use of data in the prioritization of supervisory activities and through enhanced application of the stress-testing framework.

Support delivered

The Commission provided support in the form of technical advisory services by EIOPA, including for:

• Developing practical guidance, and supervisory tools, such as manuals;

• Designing additional stress test scenarios for HANFA;

• Capacity building for the employees of HANFA involved in supervisory activities.

Results achieved

The project enhanced HANFA’s supervisory capacity in the area of prudential supervision and delivered manuals in some essential areas. This was achieved by taking a snapshot of the current state of HANFA’s prudential supervision and through data analyses and good practices from other EU supervisors. As a result, HANFA can engage in a more forward–looking supervision of insurance undertakings and ensure that policyholders benefit from better protection.

1 Insurance regulation - Solvency II review (