Open Insurance framework offers potential benefits for consumers and insurers, but rules must not copy PSD2


Insurance Europe has published a paper that examines proposals by the European Insurance and Occupational Pensions Authority (EIOPA) for a framework for Open Insurance, which focuses on access to and sharing of insurance-related data.

While Open Insurance has the potential to positively impact both consumers and insurers, the design of any potential framework will determine its overall impact. Further elaboration of the exact scope and objectives of such a framework is therefore necessary.

For insurers, a greater availability of data could lead to improved risk monitoring and assessment, a better customer experience and increased fraud detection. Increased access to data generated by both public and private sectors could also provide the opportunity to increase innovation and competition in the insurance sector. At the same time, it will be important to safeguard consumers’ ownership of their data and to ensure that data sharing is consent-based.

Maintaining a true level playing field between different market players will also be key to ensuring:

  • Consumers enjoy the same level of protection regardless of which company they are dealing with.
  • A fair allocation of costs among the parties to ensure a balanced approach to the funding and development of any new infrastructure.

It is also vital that any framework takes account of insurers’ business model, in particular the data they use. Policymakers must, for example, avoid applying a copy of the payment services framework (PSD2) to the insurance sector. The focus should instead be on:

  • Learning what has or has not worked under PSD2; and
  • Ensuring any framework respects the features and complexities of the insurance sector.

Moreover, further discussion between the industry and policymakers will be crucial in finding an optimal and balanced solution for consumers, insurers and their supervisors.