A number of EU regulations risk overloading consumers with information that provides no benefit to them when choosing insurance products, according to Insurance Europe, the European insurance and reinsurance federation.
Ensuring transparency that effectively helps consumers compare products and make informed decisions is crucial in ensuring better consumer protection. However, the disclosure of too much information is counterproductive, and risks distracting and confusing consumers and, eventually, moving them away from informed decisions.
Michaela Koller, director general of Insurance Europe, said: “The focus of regulation should be on providing a high quality of relevant information to consumers, rather than just a high quantity. Regrettably, this is not the path that the EU is on today. The latest legislative developments at EU level will dramatically increase the amount of information that insurers will be required to provide to consumers. As things stand, the number of information disclosure requirements is set to double.”
Insurance Europe also published an insight briefing on the subject, which is also available here