Earlier this year, the European Commission proposed revisions to the 2002 EU Insurance Mediation Directive (IMD) and an initiative on packaged retail investment products (PRIPs). “We welcome the idea of a ‘key information document’ for PRIPs buyers. However, it is essential that such a document always shows whether a product offers insurance benefits, so that consumers can make a well-informed product comparison”, said Insurance Europe’s director general, Michaela Koller.
“What we must ensure overall”, Koller added, “is that the Commission’s proposals have a demonstrable benefit for consumers. The information that customers are given before they buy a product must be instrumental in helping them to make their decision. Simply adding an additional layer to current levels of pre-contractual information could otherwise confuse consumers rather than encouraging them to focus on key factors, such as the insurance coverage provided. The proposals must also be workable and not place disproportionate costs or administrative burdens on the industry, as they could, in turn, have a negative effect on the market and the products available.”
Insurance Europe supports transparency about the potential conflicts of interest and the remuneration of insurance distributors as long as it helps consumers to understand products, but it must be proportionate and focus on the needs of the consumer. Likewise, consumers should be able to purchase products without advice, should they choose to do so.
Insurance Europe also stresses the importance of consistency in financial services legislation and the need to avoid cumulative conduct of business rules for insurance investment products.
Press release
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