..As part of its forward-looking approach to innovation, in its discussion paper, EIOPA had reflected upon the definition of open insurance, analysed existing use cases..
The European Insurance and Occupation Pensions Authority (EIOPA)
published today a Feedback Statement on open insurance following a discussion paper
and a public consultation on the topic. The document provides a
high-level summary of the responses received from stakeholders as well
as EIOPA’s reactions to them.
As part of its forward-looking approach to innovation, in its
discussion paper, EIOPA had reflected upon the definition of open
insurance, analysed existing use cases across the value chain, presented
the risks and benefits of open insurance and considered regulatory
barriers to encourage a broader discussion around the topic.
In their responses, stakeholders highlighted additional use cases
apart from those featured in the paper, including better risk
assessment, preventive measures and fraud detection. Respondents noted
the potential of open insurance to improve pricing practices and
transparency while also mentioning that open insurance would allow
supervisors to access real-time data and thus help them identify poor
advice and monitor automatic compliance.
Most stakeholders agreed with the benefits of open insurance
identified by EIOPA. They highlighted increased efficiency and
transparency, better tailor-made products, better understanding of risks
as well as lower costs and increased digitalisation as some of the
advantages. The majority of the respondents also concurred with EIOPA on
potential risks including the security and misuse of data, the question
of exclusions due to data or technological illiteracy, discrimination
against certain consumers as well as concerns about consumers’ informed
consent.
The approach to open insurance is a broad policy question. EIOPA’s
engagement at this stage has been of a diagnostic approach and aimed at
facilitating discussions by providing technical input.
The results of EIOPA’s public consultation show no strong agreement
amongst stakeholders on potential next steps. It is clear that the
policy issues raised by the debate on open insurance touch upon
objectives and stakeholders of broader relevance and impact than solely
within the financial sector itself.
In view of the feedback, EIOPA re-emphasises the potential of open
insurance for consumers and for the sector, including in supervision, if
managed adequately.
EIOPA
© EIOPA
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