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The European insurance industry strongly supports the aim of the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation to provide consumers with a clear understanding of different investment products through the Key Information Document (KID).
However, the final draft Regulatory Technical Standards (RTS) submitted by the European Supervisory Authorities (ESAs) to the European Commission on 7 April 2016 will not achieve this aim. As they stand, the final draft RTS will mislead consumers trying to compare different PRIIPs on the market.
The final draft RTS are not adapted to insurance-based investment products and are in many ways extremely unclear. As such, they will fall short on helping consumers to compare different PRIIPs on the market and make informed decisions.
Therefore, Insurance Europe wishes to highlight hereafter the key technical concerns the industry has over the current final draft RTS.
Insurance Europe calls on the European Commission to address these issues urgently in the final RTS in order to ensure that the PRIIPs KID delivers its intended objective and truly benefit consumers in practice.