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Pan-European regimes: A pathway to mitigate lack of trust and complexity in insurance
Journal of Financial Compliance,
6
(2),
148-157
(2023)
Abstract
Over past years the insurance market has pursued a consistent and integrated approach in order to address well-known problems such as the overall complexity of insurance products, the lack of consumer confidence and, consequently, the detachment from, and reduced feeling of loyalty towards, insurers. Regulators across different sectors globally are turning to increasingly innovative approaches to disclosure and have placed greater focus on regulating product design. Yet, in the area of EU insurance services regulation, these approaches have not been implemented effectively. Most insurance products remain highly complex for average EU consumers. Hence, it is time to reflect the digital zeitgeist in EU disclosure and distribution rules, and to achieve the maximum level of consumer protection and facilitate the single market in the digital world. Consumer-centric product design, digital distribution and disclosures will help meet consumers' expectations, facilitate understanding of the financial market and support a sufficiently high and consistent level of consumer protection throughout Europe. A regulatory Pan-European regime has the potential to cut through regulatory challenges and build trust in cross-border financial services, contributing to the Capital Market Union objectives. It facilitates the use of digitalisation and provides a strong basis for supervision, which will foster trust and confidence in European citizens. European coordination will allow the EU to compete at international level, and enable European consumers to reap the benefits of the single market.
Keywords: insurance; InsurTech; disclosures; consumer protection; supervision; financial regulation; digitalisation
The full article is available to subscribers to the journal.
Author's Biography
Ana Teresa Moutinho is Head of the Supervisory Processes Department. She is responsible for EIOPA's activities related to supervisory review process under Solvency II, data analysis and processes and business intelligence tools. She also steers EIOPA work on digital transformation. Prior to joining EIOPA in 2012, Ana Teresa worked for 15 years in the Insurance and Pension Funds Portuguese Supervisory Authority, where she gained extensive experience in the supervision of the insurance market. Having started as a supervisor, she was involved in the development of the Solvency II project from its beginning. Ana Teresa holds a university degree in Management and advanced studies in ‘Financial Markets and Risk Management and Derivatives' and in ‘Reform of the Financial Regulation after the international financial crisis’.
Andres Lehtmets works as a rapporteur for an InsurTech Task Force, which leads EIOPA's work on digitalisation. He focuses on new business models, platform economy, online disclosures, blockchain and open insurance. Andres represents EIOPA in the International Association of Insurance Supervisors (IAIS) FinTech Forum. Prior to joining EIOPA, Andres spent several years at the Insurance Policy Department in the Ministry of Finance of the Republic of Estonia, developing policies on insurance and pension funds, focusing on data protection and financial innovation. He took part in the EU decision-making process and the transposition of EU law into domestic law. Andres has a Master's degree in Public Law from Tallinn University of Technology (cum laude) and a Master's degree in Law and Information Society from University of Turku.
