To ensure the continuing fair treatment of customers in light of COVID-19, insurance manufacturers are asked to: Identify their products affected as a result of COVID-19 Assess possible unfair treatment of customers for these products Consider proportionate remedial measures
Today, the European Insurance and Occupational Pensions Authority (EIOPA) has issued a statement calling on insurance companies to review their product oversight and governance measures
because of the potential impact the COVID-19 pandemic can have on
products and their utility for customers. It is vitally important that
insurance companies place the fair treatment of customers at the heart
of their response to the COVID-19 pandemic.
Insurance manufacturers are asked to identify products whose main
features, risk coverage or guarantees have been materially affected by
the COVID-19 pandemic. If such products no longer offer value to the
target market, insurers should assess whether there is the risk of
possible unfair treatment. The assessment should be on a medium to
longer term basis, to take into account product lifecycles and the
evolution of the impacts of the COVID-19 pandemic.
Where there is a possibility of unfair treatment, EIOPA expects
remedial measures to be taken. These measures should be proportionate to
potential unfair treatment and take account of legal requirements in
national civil and insurance law.
In taking remedial measures, insurance manufacturers should aim at
both mitigating the situation and preventing further occurrences of
detriment. Insurance manufacturers should consider a broad range of
possible measures and their impact on products over the medium to long
term.
This call to action is one of a series of measures that EIOPA has
been taking to address the impact of COVID-19 on the insurance sector
and in particular builds on its statement of 1 April 2020 calling on insurers and intermediaries to take steps to mitigate the impact of COVID-19 on consumers.
EIOPA and national supervisory authorities will continue to work
collectively to ensure financial stability, market integrity and
consumer protection, including by monitoring market practices in light
of the COVID-19 situation.
EIOPA
© EIOPA
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article