Insurance Europe

Insurance Europe has today published a new paper, Understanding the distinct nature of life investment products. The paper sets out how life investment products, also known as Insurance-Based Investment Products (IBIPs), work and how their features are carefully designed to deliver real value to consumers.

IBIPs are unique in combining investment opportunities with insurance protection, offering consumers a holistic solution that adapts to their needs throughout different life stages. Unlike other investment products, IBIPs often include features such as biometric cover, financial guarantees and risk-mitigation techniques - safeguards that provide peace of mind and protection against life’s uncertainties.

Some key facts about IBIPs:

• They provide stability during market downturns through contractual guarantees and risk-mitigation techniques.
• They embed insurance cover (eg death, disability), ensuring consumers are supported in difficult times.
• They offer flexibility through Multi-Option Products (MOPs), enabling consumers to tailor their investment and protection over time.
• They help consumers make informed decisions, with clear costs, risks and returns disclosures.