The EU’s Omnibus packages: why they matter for insurers

The so-called Omnibus Packages bring together amendments to several EU legal acts into a single legislative proposal, allowing for swift and coordinated changes. For insurers, these packages have far-reaching implications, from reporting obligations and supervisory rules to digital requirements. Several such initiatives, including one on reducing bureaucracy, have already been presented this year, with more to follow. A closer look at both the process and the relevant packages from this year helps to better understand the EU measures.  

The Omnibus procedure process

The process starts with a proposal from the European Commission, based on analysis and stakeholder consultations, often complemented by impact assessments. The draft then moves to the European Parliament and the Council under the ordinary legislative procedure. Within the Parliament, the lead Committee incorporates opinions from other Committees into a common position, which in turn serves as the basis for trilogue negotiations with the Council. Both institutions may take different positions, and only once Parliament, Council and Commission reach agreement is the text formally adopted.

Bundling amendments into one package does not alter the legal effect of the instruments concerned. Directives still require transposition into national law within a set timeframe, while regulations continue to apply directly in all EU Member States. The bundled approach eliminates the need for the often lengthy legislative process that would otherwise be necessary for each change.

2025: A year of change for insurers

As part of its competitiveness agenda, the European Commission has announced eight Omnibus Packages for 2025. The Omnibus Simplification Package, presented in February, aims to streamline sustainability reporting obligations in the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. Insurers are particularly concerned about sustainability reports, which deserve scrutiny. Currently, insurers and other companies are required to report up to 1,200 sustainability information objects. This is particularly difficult for smaller insurers with few employees. The changes are intended to ensure that reports focus more on meaningful information and eliminate unnecessary bureaucratic burdens. The GDV is actively involved in the relevant consultations and hearings.

For the project to be successful, the association believes it is crucial to create real added value in reporting. This includes, for example, significantly reducing the number of required data points, i.e. the individual sustainability information items. The current information flow not only burdens insurers in preparing reports but also makes it difficult for readers to interpret the contents.

What else can we expect? 

Later in the year, a Digital Omnibus Package is expected, which will consolidate and align existing rules on digital supervision and IT security. The financial sector is undergoing profound transformation through digitalisation: technologies such as cloud computing and artificial intelligence boost efficiency, open new opportunities in communication with customers and drive innovation. At the same time, as connectivity increases, so does the risk of security gaps. Insurers and regulators must ensure both the protection of sensitive data and the promotion of technological advances.

The GDV sees the Digital Omnibus as an opportunity to make regulation more practical. Avoiding overlap with the existing Digital Operational Resilience Act (DORA), which sets requirements for IT risk management and cybersecurity, should be crucial. A balance between data protection and the use of new technologies is crucial. This is the only way to ensure both security and innovation.