Ferma calls for regulatory simplification from Hungarian Presidency of EU Council

Ferma has called upon the Hungarian Presidency of the Council of the EU to help simplify the regulatory maze and promote the competitiveness of European industry. Ferma said this will require “a holistic approach”.

As part of this simplification process, Ferma called upon the Hungarian Presidency to focus efforts on supporting the implementation of adopted legislation concerning the green and digital transition – in particular the EU AI Act, the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive and Solvency II.

The Federation added: “Ferma is supportive of the Antwerp Declaration calling for ‘a new spirit of law making’. Ferma calls on the Hungarian Presidency of the EU to keep this ethos at the core of its work, including any new initiatives, towards making Europe more competitive.”

Charlotte Hedemark, president of Ferma, said: “The Hungarian Presidency has set ambitious goals and Ferma is committed to supporting it. While there is much focus on the challenges the EU faces, it is important we equally recognise the significant opportunities for progress that exist. The risk management community has a fundamental role to play in capitalising on these opportunities and Ferma will be an active participant in dialogue with the Hungarian Presidency.”

The Hungarian Presidency has committed to maintaining dialogue on cybersecurity, and Ferma has called for “a shift in focus from prioritising cyber crisis management processes to emphasising preparedness first”. Ferma said it hoped such a move could be reflected in dialogue relating to the EU cybersecurity policy.

It also reiterated the need for the EU to consider establishing a cyber reinsurance pool or backstop mechanism to provide financial resilience against a catastrophic cyber event. “Ferma values a multistakeholder approach and advocates for a joint taskforce led by the European Commission, EIOPA, and ENISA to work on the practicalities for setting up such a system,” it said.

Ferma also urged the Presidency to adopt a risk-based approach to addressing Europe’s increasing exposure to crises to help ensure operational continuity and minimise disruptions. Ferma suggested that, with the expectation of further impacts in the latter half of 2024, “the EU provides tools, like funds and guidance, to help businesses manage supply shocks during crises or emergencies”.

On AI-related developments and the implementation of the EU AI Act, Ferma noted: “Risk managers play pivotal roles within their organisations and society, leveraging the potential of AI, while ensuring its safe, ethical and fair use. Their participation in AI-related policymaking is crucial, particularly in discussions relating to the liability regime governing AI.”