EIOPA has published its report on consumer protection issues arising from the sale of mobile phone insurance (MPI). It analyses sales practices involved in this type of insurance product, providing coverage against loss or theft of mobile phones or physical damage to them. EIOPA identifies long contracts, insufficiently clear disclosure practices and high commission rates as some of the key problems with MPI. The report makes recommendations on how to best improve consumer protection, including:
- increasing transparency in MPI selling practices;
- providing consumers with a clearly disclosed opportunity to opt out of the MPI when it is sold alongside the purchase of mobile phones or other products;
- setting up transparent and efficient administrative procedures for processing MPI claims; and
- ensuring that MPI distributors and salespersons are properly trained as relevant.
Most of these recommendations have already been reflected in the forthcoming IDD, which aims to enhance consumer protection in the process of selling insurance products more generally. (Source: EIOPA Reports on Consumer Protection in Mobile Phone Insurance)