On 3 December 2014, EIOPA published its third consumer trends report.

The report, which is dated 2 December 2014, provides an overview of trends in Member States that may have led, or may lead in the future, to consumer detriment in the insurance and pensions markets. The purpose of the report is to assist EIOPA in in the identification and prioritisation of future measures.

Among the main trends are:

  • misleading advertising and sales literature, and incomplete or difficult to understand information on costs and charges;
  • increased cross-selling (that is, tying and bundling) and sale of add-ons linked to a large number of financial products, such as protection linked to loans, debit and credit cards, where competition for the add-on product may not be effective and/or the add-on product is of poor added value;
  • poor claims-handling or claims management, in particular in the area of motor insurance;
  • conflicts of interests, where life insurers select underlying funds based on the highest commissions received from fund managers;

insurers' sales incentive schemes leading to mis-selling, due to insufficient steps being taken to safeguard the fair treatment of customers, reflecting failures in the proper identification and management of conflicts of interests.