Regulatory Alerts2019-10-29
Added · Updated
EIOPA Warning on High Commissions for Travel Insurance Products
Insurance undertakings and insurance intermediaries must assess their product offerings, approval processes, and distribution agreements to ensure fair value for customers and compliance with the Insurance Distribution Directive. The document highlights that business models with extremely high commissions or low claims ratios, as well as health coverage excluding pre-existing conditions without pre-screening, are not in line with IDD requirements. EIOPA and national competent authorities will intensify risk-based supervision and may exercise investigatory powers or impose sanctions for non-compliance with conduct of business requirements.