Insurance Europe has added its two cents on the consultation conducted by the European Insurance and Occupational Pensions Authority (EIOPA) on its supervisory statement on differential pricing practices. It stressed caution in publishing measures targeting pricing, which it called “unprecedented” and a potential overreach of EIOPA’s mandates.
The federation suggested that the EIOPA and national competent authorities hold an “extremely limited role” in taking actions that directly impact an insurer’s ability to set prices. In particular, for EIOPA to take action, “there must be a clear need for EU-level action that cannot be achieved at the member state level.”
Insurance Europe agreed that pricing practices resulting in unfair outcomes, once identified, should be addressed. However, it stressed that the Insurance Distribution Directive already required insurers to act honestly and fairly in the policyholder’s best interest – a rule supported by national and industry regulation as well as existing consumer protection bodies.
It urged EIOPA to look at prices in the context of the individual insurer’s commercial policy, technical features, and fees and charges. Each company’s business strategy included setting its own price, which Insurance Europe believed brought “strong and efficient competition” to the industry and a broader approach to customer acquisition.