EIOPA welcomes the initiatives already taken by insurers and insurance intermediaries to support and assist consumers, and the consideration shown towards consumers affected by COVID-19. EIOPA also urges insurers and intermediaries to continue to act in the best interest of consumers during the COVID-19 pandemic. Underscoring the essential need for business continuation and the fair treatment of consumers to secure trust in the sector, EIOPA outlines five recommendations for insurers and intermediaries:
- • Provide clear and timely information to consumers on contractual rights to ensure that consumers understand the scope of their cover and the exemptions that apply.
- • Treat consumers fairly and be explicit in all communications with consumers to avoid confusion.
- • Inform consumers about contingency measures taken and how these could affect contracts and the provision of services. This includes information pertaining to the continuity of services, validity of insurance contracts, changes to how claims are managed, and organisational arrangements around how consumer enquiries are dealt with.
- • Continue applying product oversight and governance (POG) requirements, taking into account the impact of the pandemic and carrying out product reviews where necessary.
- • Consider the interests of consumers and exercise flexibility in how they are treated, where reasonable and practicable.
EIOPA furthermore notes that, in the wake of the pandemic, the pooling of risks could be difficult to achieve. It points out that material solvency risks could emerge with the imposition of the retroactive coverage of claims not envisaged within contracts, and this could put policyholder protection and market stability in jeopardy. This statement follows the secretariat’s intense outreach to EIOPA in view of highlighting the goodwill but also the needs of the insurance industry.
Latest developments
EIOPA previously published:
- • A statement on actions to mitigate the impact of Coronavirus/COVID-19 on the EU insurance sector;
- • Recommendations on supervisory flexibility regarding deadlines of supervisory reporting and public disclosure by insurers.
Next steps
- • EIOPA and NSAs are closely monitoring the latest developments around the pandemic and will issue guidance where necessary.
- • The secretariat will continue liaising with EIOPA.
For more info
EIOPA’s full statement can be accessed here.