Insurance Supervisors in Ljubljana Discuss Key Challenges and Opportunities in Regional Insurance Markets
The Insurance Supervision Agency of Slovenia hosted the CEET Regional Seminar in Ljubljana on 20–21 November 2025, bringing together over 40 representatives from supervisory authorities across 14 countries. The two-day program, “Bridging the Gap: Resilience, Risk and Inclusion in Regional Insurance Markets”, opened discussions on the most pressing trends, risks, and opportunities in regional insurance markets.
Seminar Program and Focus Areas
The program featured six thematic sessions. The first day focused on consumer protection, the role of intermediaries, and the development of agricultural insurance in the region. A central topic was the transition from Solvency I to Solvency II, where experts from CEET authorities, EIOPA, and IAIS shared practical experiences in implementing risk-based supervision frameworks.
The second day addressed digital transformation and cyber resilience, including a live ethical hacking demonstration. It also included a review of IAIS regional priorities and presentations on models and best practices in natural catastrophe insurance.
Crypto Assets: High Risk, High Responsibility
The first session highlighted that crypto assets, despite market growth, remain highly speculative and risky, with significant environmental and security challenges. Supervisors stressed that the prudent person principle is essential. As noted, the crypto revolution is not a race to the future but a test of responsibility today.
Product Oversight and Governance (POG) and Consumer Protection
POG is increasingly shifting from a compliance-focused approach to a cultural expectation, emphasizing collaboration between manufacturers, intermediaries, and supervisors. The consumer must remain at the center of all product development. Common weaknesses persist, such as broadly defined target markets, overly technical documentation, and product reviews lacking clear criteria.
Market Conduct, Governance, and Solvency
The seminar highlighted that poor culture, flawed sales models, or excessive commissions can quickly translate into prudential risks. ORSA (Own Risk and Solvency Assessment) was emphasized as a key tool to move from compliance to risk ownership and long-term resilience.
Intermediaries and Market Dynamics
Discussions highlighted challenges in distinguishing between consumers and clients, integrating sustainability requirements into IDD, and maintaining stable rules to build trust. Despite digitalization, human interaction remains essential, as evidenced by the most frequent chatbot query: “Can I speak to a real person?”
Agricultural Insurance and the Protection Gap
Agricultural insurance remains underserved, with data gaps, moral hazard, and limited reinsurance capacity restricting access to coverage. Promising solutions include parametric products, digitalization, and strong public-private partnerships, though prevention and resilience remain the most effective protection.
Solvency II: Gradual Transition and Cultural Change
The discussion on Solvency II emphasized gradual implementation, proportionality, and early capacity building. The goal of S2 is clear: safer, innovative, and long-term resilient insurance markets, recognizing that cultural change takes time.
Artificial Intelligence, InsurTech, and Cyber Risks
Day two addressed AI, InsurTech, and cyber risks, emphasizing a risk-based and proportionate supervisory approach, with clear principles for transparency, ethics, and oversight of third-party AI providers. InsurTech trends highlight genAI and open finance, shifting focus from routine tasks to enhancing consumer value and experience.
Natural Catastrophe Insurance
The final session showed that only about 25% of European natural catastrophe losses since 1980 were insured. Emerging risks such as drought and wildfires require better data, advanced modeling, and broader risk-sharing mechanisms. Key challenges include low awareness, cost, and unclear coverage. Solutions lie in improved data, greater public awareness, and stronger public-private collaboration.
Key Takeaways
The seminar concluded with a unified message: resilient insurance markets rely on responsible innovation, transparent governance, consumer-focused products, and forward-looking risk management. Informal networking events in Ljubljana and Bled further strengthened collaboration among CEET countries.