Insurance Europe has published an insight briefing on the need to provide consumers with the appropriate amount of information to make informed decisions when purchasing insurance products.
Insurance Europe supports effective EU consumer protection rules that enable individuals to compare products and make informed decisions. To achieve this, these rules must be consistent, coherent and well-designed.
However, the insight briefing outlines why overloading people with information could simply confuse them, leading to ill-informed decisions and potentially, when a claim comes, unhappy consumers.
Despite being well-intended, there is a risk that new EU rules such as the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation and the Insurance Distribution Directive (IDD) will not actually benefit consumers. Why?
Because each proposal was developed on its own, without enough attention being paid to the effect of the rules when they are combined. This is important because many insurance sales processes require many different rules to be applied at once. Also, the rules are already outdated, because they do not take account of the fact that many people now buy insurance online
Full briefing
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