On 28 June 2013, EIOPA issued an opinion on consumer protection issues in payment protection insurance (PPI). The opinion notes that the consumer protection issues surrounding PPI have triggered action from regulatory or supervisory bodies in a number of jurisdictions. While acknowledging that PPI products, when properly designed and sold, serve legitimate consumer needs, EIOPA also acknowledges that in a number of jurisdictions, significant cases of mis-selling have occurred. This has adversely affected consumers and has damaged the reputation of the insurance sector generally.
On the basis of its findings, EIOPA recommends that national competent authorities analyse whether PPI merits further investigation and / or regulatory action at national level. It also requests the national competent authorities to provide feedback on their previous activities and on any planned actions in this area based on the opinion within six months from the date of the opinion. Once EIOPA has received this feedback it will decide if further action is required at an EU level.
Please click here to view the full text of the opinion.