EIOPA published its sixth consumer trends report. The report outlines key developments in the insurance and pensions sectors that impact European consumers. The key developments mainly revolve around the increasing prominence of financial innovation and the emergence of InsurTech players.
The report highlights the progressive presence of digital technologies across all stages of the insurance value chain, with the biggest changes being observed in distribution channels. Consequently, new InsurTech players are emerging on the market. Many established insurance companies are upgrading their digital capabilities through the setup of in-house and external innovation labs, partnering with large technology companies and InsurTech startups, including peer-to-peer insurers. Innovative and increasingly personalized insurance products and services are being offered to consumers, for instance, by using telematics devices in health, motor, and household insurance. While Big Data raise concerns regarding the possible exclusion of consumers with a high risk profile, certain examples of how it can help increase financial inclusion have also been identified.
The report also points to a significant increase in the reported level of consumer complaints in the insurance sector, particularly in non-life insurance and mainly related to claims-handling. A slight increase in the number of complaints has also been identified in the pensions sector. 2018 and 2019 are expected to bring significant improvements and changes in the EU regulatory environment related to insurance and pensions. These can be expected to impact trends of all types in the future, though the impact may take a number of years to become clear.
Keywords: Europe, EU, Insurance, Consumer Trends Report, InsurTech, RegTech, Financial Innovation, EIOPA
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