12 June 2015

EIOPA/Bernardino: Insurance distribution in a challenging environment

The speech updates on some key topics for EIOPA: how the Insurance Distribution Directive (IDD) is shaping up, the work on the Key Information Documents (KID) and vision on Conduct of Business Supervision.

In particular, Mr. Bernardino touches upon the following three issues:

• How the Insurance Distribution Directive (IDD) is shaping up and some of EIOPA’skey strategic views. He said: “As insurance  intermediaries,  you  play  a  key  role  in  selling  insurance  products  to consumers. You are the main interface in the market. That is why your conduct needs to appropriately match the interests and needs of customers.”
• The work on the Key Information Documents (KID) for Packaged Retail and Insurance-based  Investment  Products  (PRIIPs) to  enhance  product  disclosure for consumers by reducing complexity and enhancing comparability; as well as
• EIOPA’s vision on Conduct of Business Supervision;

He ends by making reference to the upcoming challenges posed by the digital era.

Distribution of insurance products is a very complicated topic. It is needed not forget that certain markets have their own long-term culture, traditions and specificities. There are also a wide variety of structures at the national level for supervising insurance intermediaries.

But the EU has a single European market, which should be promoted in the field of regulation and supervision. It is need to have harmonized rules that, at the same time, consider the existing market specificities, as well as effective supervision.

Mr. Bernardino said:

”Only if we put at the centre of regulation and at the heart of the business, the interests of customers, we will be able to ensure the appropriate level of consumer protection and, in general, enhance consumers’ confidence in financial markets.”

Finally, all market participants need to embrace the changes coming from the digital era and use them to provide customers a better experience and service.

Full speech

© EIOPA