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News Update Financial Regulatory

AFM's paper 'Technology towards 2033' and EBA's Consultation on risk-based supervision guidelines.
1 May 2023

In this News Update we discuss AFM's paper 'Technology towards 2033: the future of insurance and supervision' and EBA's Consultation on guidelines amending its risk-based supervision guidelines.

AFM | paper 'Technology towards 2033: the future of insurance and supervision'

On 11 April 2023, the Dutch Authority for the Financial Markets (AFM) published an occasional paper on the opportunities and risks of insurance market digitalisation 'Technology towards 2033: the future of insurance and supervision' (Technologie richting 2033, in Dutch only). The paper addresses the technological trends in data handling, and the impact of data analytics on insurance business operations and distribution, from pricing to claims handling. It also addresses the impact of new European legislation on technological developments and examines AFM's changing role.

Technological trends

Trends range from an increased amount of data and data sources, along with cloud storage and improved analytical capability, to increased connectivity and issues around digital security and digital skills. Legacy issues affecting systems and processes could hamper the realisation of the efficient functionalities needed for digitalisation.

Impact on the insurance business

According to the AFM, the increasing digitalisation and the possibilities it creates for the insurance business could lead to:

  • Process optimisation in terms of pricing, acceptance, prevention and claims. This may result in personalised pricing and more detailed risk and acceptance policies, as well as personalised insurance terms and conditions. Extensive personalisation could make it difficult or impossible for consumers to compare products;
  • New propositions in distribution and products. Distribution-related propositions involve robo-advice, platforms, embedded insurance, products and distribution, and cross-bordeservices. Product-related propositions include insurance linked to place and time (e.g. travel insurance that automatically starts when national borders are crossed), insurance based on actual behaviour (e.g. lower premiums for risk-averse drivers) and parametric insurance (which pays out when a pre-set threshold is reached);
  • Changing roles: insurers can take on a platform role (offering additional services) or can even offer entire ecosystems;
  • New dependencies: insurers are expected to become more dependent on the Internet of Things and the Internet of Everything (using, for example, data from electric vehicles and from household appliances connected to the internet), as well as becoming more dependent on data providers;
  • Other developments in distribution and products. The impact of non-supervised companies in the insurance area, such as software developers or producers of fraud detection systems and programs, may lead to the insurance chain becoming fragmented or conversely more integrated. The role of re-insurers is expected to increase given their expertise in data analysis. Demand for cyber risk insurance is expected to rise as a result of increased digitalisation.

Impact of EU policies and regulations

The EU regulations and policies on technological developments may also impact the digitalisation of the insurance market.  Examples of such regulations and policies include the European Commission's digital and data strategy, sector-specific policy developments such as the Digital Operational Resilience Act and Open Insurance,  and conduct supervision both on national and on a cross-border basis.

Impact on AFM

The AFM's role could change. The existing legal requirements for processes (product approval and review process and customer centricity) and for the provision of information and advice will remain relevant. However, other developments may become important. These include outsourcing to non-supervised firms, the role of other supervisors in a digital environment and possible tension with the existing legal requirements. This may affect AFM's role in supervising processes, distribution platforms and the level playing field (in the context of the blurring of the distinction between financial services and other sectors, such as Big Tech).

EBA | Consultation on guidelines amending its risk-based supervision guidelines

On 29 March 2023 the European Banking Authority (EBA) published a Consultation Paper on amending the guidelines on a risk-based approach to anti-money laundering and counter-terrorist financing (AML/CFT) supervision. The aim is to extend the scope of these risk-based supervision guidelines to AML/CFT supervisors of crypto-asset service providers (CASPs). Given that the provision of crypto-asset services is a cross-border activity, EBA considers it important to apply the same standards to CASPs operating in the single market, in particular where multiple competent authorities are responsible for the supervision of the same institutions. The consultation ends on 29 June 2023.

New or amended guidance includes the sources of information to be considered by competent authorities when assessing money laundering/terrorist financing risks associated with CASPs. The guidance also stresses that competent authorities' staff should have the technical skills and necessary expertise to supervise CASPs.

Guidance for CASPs on AML/CFT will follow by amendments to the EBA’s risk factors guidelines, amendments to the guidelines to prevent the abuse of fund transfers for money laundering/terrorist financing purposes, and new guidelines on policies and procedures for compliance with restrictive measures.

Other financial regulatory publications

We have highlighted a selection of other publications by legislatures and regulators for the financial markets and financial supervision since our April 2023 Update.



  • News item: DNB published its new Guide containing the supervisory approach for climate and environmental risk management. An English version of the Guide will be published shortly.


  • On 12 April 2023 the European Supervisory Authorities (ESAs) published a Joint Consultation Paper on the review of Sustainable Finance Disclosure Regulation (SFDR) Delegated Regulation regarding PAI and financial product disclosures. The consultation period ends on 4 July 2023;
  • On 14 April 2023 the Joint Committee Sustainable Finance published Q&As on the interpretation of Regulation (EU) 2019/2088 (SFDR).



  • EIOPA and the European Central Bank (ECB) published a joint discussion paper on how to reduce the climate insurance protection gap. The consultation period ends on 15 June 2023.



Ministry of Finance 

  • In early April 2023 the Act on the implementation of the sixth directive on insurance against civil liability in respect of the use of motor vehicles (Implementatiewet zesde richtlijn motorrijtuigenverzekering, in Dutch only) was sent to the House of Representatives;
  • The Act on the implementation of the MIFID II Covid-19 recovery package (Implementatiewet richtlijn herstelpakket beleggingsondernemingen, in Dutch only) entered into force on 5 April 2023;
  • Answers to parliamentary questions on AFM's questionnaire for investment firms on the Money Laundering and Terrorist Financing (Prevention) Act (Wet ter voorkoming van witwassen en financieren van terrorisme) and the Sanctions Act (Sanctiewet) and on DNB's questionnaire on integrity risk;
  • Answers to parliamentary questions on the analysis and next steps following the European Court of Justice judgment on the UBO register (in Dutch only).

If you have any financial regulatory questions, please do not hesitate to contact Berry van WijkJuan Vervuurt, Gijs Hamelijnck or Lisanne Haarman.

Written by:
Berry van Wijk

Key Contact

Advocaat | Partner

Key Contact

Advocaat | Counsel
Gijs Hamelijnck

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Advocaat | Senior Associate

Key Contact

Advocaat | Senior Associate