The European Insurance and Occupational Pensions Authority (EIOPA) called on insurers on Wednesday 1st April, asking them to continue to treat consumers “fairly” during the COVID-19 pandemic.
A statement that comes at a time when insurers are being blamed for their lack of solidarity and are accused of not providing enough help to companies hit by the economic crisis.
EIOPA is calling on insurance companies to be more “flexible” in handling applications from clients affected by the current crisis. Containment and social distancing measures can sometimes prevent them from fulfilling their contractual obligations on time, especially in the case of compulsory checks, such as a medical check-up or a technical inspection for a car, the Authority recalls.
It also asks them to provide “clear and timely” information to consumers on their contractual rights and the scope of coverage of their insurance policies and to keep them informed of emergency measures put in place by insurers which may have an impact on their contractual relationship, such as the increased use of online services. The EIOPA also expects insurers to continue to apply existing insurance product oversight and governance requirements.
While calling for the best interests of consumers to be served, the EIOPA nevertheless recognises that “imposing retroactive coverage of claims not envisaged within contracts could create material solvency risks and ultimately threaten policyholder protection and market stability, aggravating the financial and economic impacts of the current health crisis”.
See the statement: https://bit.ly/2UCiieg (Original version in French by Marion Fontana)