Insurance Comparison Websites: EIOPA Good Practices Alexandra de Jong Multi-Stakeholder Dialogue 5 March 2014

EIOPA European Insurance and Occupational Pensions Authority Since 2011 replacing CEIOPS EEA National Supervisory/Competent Authorities EIOPA’s role: “The Authority shall take a leading role in promoting transparency, simplicity and fairness in the market for consumer financial products or services (…).” [Art. 9(1) EIOPA Regulation]

Report on Good Practices on Comparison Websites Content: “good practices” for transparent and consumer-friendly websites Non-legally binding Timeline: Published on 30 January 2014 Follow-up in Joint Committee of EIOPA, EBA and ESMA

Outline Consumer experience EIOPA Good Practices Market reality

Consumer experience EIOPA Good Practices Market reality

Insurance comparison websites Definition Insurance comparison websites “interfaces, the objective of which is, to display to Internet users a number of insurance offers, and compare their prices and/or what is covered” EIOPA Report on Good Practices on Comparison Websites

Market for online insurance comparisons Diverse: Number of websites per country Products Activities

Number of insurance comparison websites > 20: CZ, ES, FR, NL, RO, UK 10 – 19: DE, GR, HU, IE, IT, LV, PL, SK 1 – 9: AT, BE, BG, DK, EE, FI, HR, LT, MT, NO, PT, SE None: CY, IS, LI, LU, SI Source: EIOPA Report on Good Practices on Comparison Websites, based on reporting from EIOPA Members

Supervisory regime Insurance Mediation Directive (IMD): “insurance mediation”: regulated activity Transposed into national legislation: differences IMD2: expected to clarify

Consumer experience Supervisory response Market reality

Usage Consumers planning to buy insurance in the next 12 months***: online: Europe: 43% UK: 70% FR: 21% Trend: increasing Sources: *** Accenture (2010): Multi-Channel Distribution Insurance Consumer Survey

What consumers like Popular with consumers: Source of information Shop around Possibility to conclude contract online Result: Increased transparency, decreased prices

Scope for improvement

Example: Ranking

Example: Ranking Is the cheapest offer also the best for me? What are the differences between the offers? What is covered?

Consumer experience EIOPA Good Practices Market reality

Example: Ranking => Not easy to understand how ranking was made Good Practices: Price: not the sole criterion! Allow users to select additional criteria Allow for easy comparison: present product features, insurance cover and limitations in a consistent way

EIOPA Good Practices Other areas: Criteria used to make the ranking Information about the website Market coverage Dealing with potential conflicts of interest Presentation of information Frequency of updating the information

Conclusions

Thank you for your attention! Alexandra de Jong Expert Consumer Protection and Financial Innovation Unit Alexandra.dejong@eiopa.europa.eu

References: EIOPA’s Report on Good Practices on Comparison Websites: https://eiopa.europa.eu/fileadmin/tx_dam/files/publications/reports/Report_on_Good_Practices_on_Comparison_Websites.pdf