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
Previous ArticleBoE Updated its Approach to Resolution Framework for Banks
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.