Insurance Europe summary:
EIOPA has published its 9th Consumer Trends Report (CTR). As anticipated, observations drawn by EIOPA from stakeholder input to its CTR include:
- The positive maintenance of business continuity during the COVID-19 crisis;
- The positive efforts made by the sector to show forbearance towards consumers during the crisis.
However, EIOPA identified a number of key issues emerging from the initial phase of the COVID-19 crisis:
- Some concern in relation to unit-linked products, especially on the impact on consumers of the low value of these products;
- The potential for further investigation of the topic of contract complexity and exclusions;
- Some concern over travel insurance products, both in relation to exclusions but also in relation to changes in the risk profile.
- Some concern over the impact of changes in risk profiles.
On the pension side, the report underlined that cases of lower pension contributions emerged, where savers were not able to continue contributions. The report pointed out that further risks in the decumulation phase may crystalise, with the potential to lead to future cuts in benefits.