Insurance Europe responds to ESMA call for evidence

Insurance Europe has published its response to ESMA’s call for evidence on aspects of retail investor protection.

Key points in the response include:

  • insurance-based investment products (IBIPs) account for c.90% of the current PRIIPs market (which accounted for around €5 trillion of assets under management in 2019), so it is vital that the future framework respects IBIPs’ specific features and enables consumers to take better informed decisions;
  • the EC Retail Investment Strategy should examine how to better explain the characteristics of different products, rather than adopting a common approach for all financial products;
  • the regulatory framework must be digital-friendly for all products and services;
  • action is needed to increase financial literacy across Europe and the Commission should play a greater role in achieving this; and
  • any review should not be rushed – extensive technical and consumer testing and an adequate timeline for the consultation of stakeholders are essential.

Lucy Hadrill