Innovating in Supervision: Building Trust Through Conduct Oversight and SupTech

Distinguished guests and colleagues; ladies and gentlemen,

It is a pleasure and an honour to join you today at the Asian Forum of Insurance Regulation's Annual Meeting here in Hyderabad. India is a country whose insurance and financial sectors continue to be a remarkable source of innovation, ambition, and global inspiration. I would like to thank the organisers for creating an environment in which supervisors, industry leaders, academics, and policymakers can collectively reflect on the future of our sector.

Today, I will address a topic that is central to the mission of every supervisory authority around the world - one that is also deeply personal to me as Chair of the European Insurance and Occupational Pensions Authority:

• how we can innovate in supervision, and…
• how trust can be strengthened through robust conduct oversight and the intelligent use of supervisory technology (SupTech).

We stand at a defining moment for financial supervision. Digitalisation, market complexity, new business models, and shifting consumer expectations are challenging traditional supervisory approaches. At the same time, risks that once seemed theoretical - such as cybersecurity breaches, algorithmic biases, and climate-related losses - have become tangible realities.

In such an ecosystem, trust is both more fragile and more valuable. Consumers expect fairness, transparency, and resilience. Markets need stability and predictability. In addition, supervisors must demonstrate that they can keep pace with innovation while protecting the public interest.

This is why the future of supervision cannot be built on legacy processes alone. It must rely on innovation, data-driven oversight, and conduct frameworks that understand and anticipate how people actually experience financial products.

Allow me to structure my remarks today in three parts:

1. Why conduct oversight is essential for trust in a digital era.
2. How SupTech can transform supervisory practice.
3. What steps we, as global supervisors, can take together to build a more trusted and resilient financial future.

1. Conduct Oversight: The Foundation of Trust

At its core, insurance and pensions are promises about the future. They exist to give households and businesses the peace of mind that comes with long-term security. Yet, those promises only have meaning if consumers trust that their provider and the wider system will act fairly and responsibly.

Traditionally, prudential supervision has focused on ensuring that institutions remain solvent and resilient. Conduct supervision, by contrast, focuses on ensuring that institutions treat customers fairly, design products responsibly, and communicate transparently.

Both elements are essential. One protects stability; the other protects people.

Today, conduct oversight is becoming even more central due to important shifts:

• Digitalisation and new distribution models

The rise of comparison platforms, digital brokers, embedded insurance, and AI-enabled underwriting has changed how customers interact with insurers. These innovations can increase access and convenience, but they also create new risks:

• opaque pricing,
• algorithmic discrimination,
• misaligned incentives,
• over-complexity for consumers who are digitally inexperienced.

Conduct oversight must evolve to ensure that digital innovation remains consumer-centric and risk-appropriate.

• Complexity of modern products

Insurance and pensions products are becoming more sophisticated. With greater complexity comes the risk that customers may struggle to understand the implications of their choices. Conduct supervision must therefore focus on:

• product design,
• suitability assessments,
• clarity of disclosures,
• and the prevention of over-complexity.
• Heightened expectations and rising vulnerability

Consumers today expect more, from both companies and supervisors. At the same time, inflation, longevity, and economic uncertainty have increased financial vulnerability.

As supervisors, we must ensure that vulnerabilities are not exploited, but rather, anticipated and protected.

For EIOPA, this has meant developing a comprehensive conduct framework:

• one that looks at product governance,
• identifies consumer detriment early,
• scrutinises digital distribution,
• and enforces fairness in claims settlement.

No matter how strong the framework is though, we must accept a simple truth: conduct oversight can no longer rely solely on traditional methods. The complexity and speed of modern markets require that we embrace innovation.

2. SupTech: The Engine of Modern Supervision

When we talk about innovation in supervision, we are really talking about SupTech: the use of advanced technology by supervisory authorities to enhance their effectiveness, efficiency, and foresight.

SupTech is not a fashionable term or a passing trend. It is a strategic necessity.

Let me highlight several ways in which SupTech is redefining supervisory practice.

• Data Collection and Quality Enhancement

The foundation of risk-based supervision is data. But data today is not only volume. It is velocity, variety and veracity.

SupTech allows supervisors to:

• automate data collection,
• validate data quality in real time,
• integrate information from diverse sources,
• and reduce the burden on supervised entities.

At EIOPA, for example, our digital transformation programme is enabling the shift from periodic reporting to continuous data flows, giving us more timely insights while reducing duplications.

• Advanced Analytics and Machine Learning

Traditional supervisory reviews often rely on sampling, manual analysis, and periodic assessment. SupTech introduces new tools:

• machine learning models that detect anomalies,
• algorithms that identify emerging consumer risks,
• text-mining tools that read millions of complaints,
• dashboards that alert supervisors to sudden shifts in the market.

These tools do not replace human judgement. Rather, they amplify our capacity and enable supervisors to focus on the areas of highest risk.

• Conduct Monitoring in Digital Markets

Conduct oversight represents one of the most promising uses for SupTech. Supervisors can now:

• monitor online sales journeys,
• analyse comparison-site pricing in real time,
• detect misleading marketing practices,
• and identify discriminatory outcomes in algorithmic underwriting.

This gives supervisors an unprecedented understanding of how consumers actually experience products, not merely how they are intended to work.

• Supervisory Collaboration and Knowledge Sharing

SupTech also enhances cooperation. By creating digital platforms, supervisors can:

• share risk indicators,
• compare market practices,
• coordinate cross-border oversight,
• and collaborate in crisis scenarios.

This is crucial in a globalised market where risks do not stop at border limits.

• Enhancing Internal Efficiency

Finally, SupTech allows authorities to improve internal workflows through:

• automated case management systems,
• digital audit trails,
• secure communication channels,
• and integrated risk dashboards.

This frees up supervisory teams, allowing them to focus on expert analysis rather than administrative tasks.

But innovation comes with responsibilities. SupTech must be developed safely, ethically, and transparently. Supervisory authorities must maintain strong governance, data protection, and algorithmic accountability.

Innovation should strengthen trust, not weaken it.

3. Building a More Trusted and Resilient Supervisory Future

If we agree that conduct oversight is essential, and that SupTech is indispensable, the next question should be: how do we collaborate as global supervisors?

Allow me to outline some priorities:

• Establish Common Standards for Responsible Innovation

As new technologies emerge, supervisors should agree on principles for:

• fairness in AI,
• ethical data use,
• transparency in algorithms,
• and consumer protection in digital distribution.

EIOPA is actively working on guidelines for the use of AI systems in insurance, and we see important opportunities for global alignment.

• Promote Open, Interoperable Data Ecosystems

Data is the lifeblood of modern supervision. We must work toward:

• interoperable data standards,
• consistent reporting frameworks,
• and secure data-sharing protocols.

This will reduce costs for industry and enhance the ability of supervisors to collaborate.

• Invest in Capacity-Building and Digital Skills

SupTech is not only a technological journey, but also a human one. Supervisory authorities need:

• data scientists,
• behavioural economists,
• cyber experts,
• and digital analysts.

Upskilling our teams is just as important as upgrading our systems.

• Embed Consumer Insights into Supervisory Design

Consumers are not data points. They are people with expectations, vulnerabilities, and aspirations. Conduct supervision must be informed by:

• behavioural research,
• consumer testing,
• user experience analysis,
• and meaningful stakeholder engagement.

This will ensure that our frameworks protect not only the average consumer but also those on the margins.

• Strengthen Global Cooperation

No supervisory authority can manage today's risks alone. Whether it be climate risk, cyber threats, or cross-border digital distribution, cooperation is essential.

Forums like the IAIS, and indeed AFIR, provide invaluable opportunities to develop shared solutions. EIOPA is committed to deepening cooperation with supervisory partners around the world.

Ladies and gentlemen,

Innovation is often discussed in terms of technology, efficiency, or speed. But in supervision, innovation has a more profound purpose: to protect people and strengthen trust.

Our goal is not to have the most advanced tools. Our goal is to ensure that every policymaker, insurer, and - above all - consumer can rely on a system that is fair, resilient, and fit for the future.

By embracing conduct oversight, we honour the human side of finance.
By adopting SupTech, we equip ourselves for the complexity of the modern world.
And by working together across borders, we build a financial ecosystem worthy of public confidence.

As Chair of EIOPA, I firmly believe that the future of supervision is innovative, but also human-centred. It is technologically advanced, but grounded in ethics. It is global in scope, but local in impact.

Let us seize this moment - together - to build a supervisory framework that truly supports trust, enhances fairness, and strengthens resilience for generations to come.

Thank you.