Access to affordable insurance and pension products tailored to consumers’ needs remains low, the European Insurance and Occupational Pensions Authority (EIOPA) revealed in its Consumer Trends report published on Wednesday 18 January.
The report’s conclusions are supported by the results of a flash Eurobarometer survey commissioned by EIOPA. According to the survey, more than a third of European consumers do not have any savings products and more than half of them fear that they will not have enough money to live comfortably in retirement. 19% of European consumers do not take out insurance, or do not renew it, because they cannot afford it.
While access to insurance products appears to be more widespread, compulsory motor and household insurance products account for a large share of all insurance, while the other categories are hardly used.
Affordability issues and budgetary constraints are the main reasons that discourage consumers and small businesses from taking out new insurance or renewing their existing policies.
“The current cost of living crisis must be seen as a call to decision-makers along the value chain to remedy known issues with consumer-centric solutions and thus alleviate the pressure on people and small business owners that are struggling to make ends meet”, said Petra Hielkema, president of EIOPA, in a statement.
According to EIOPA, the continued digitisation of the insurance and pensions sectors is one of the solutions to lead to greater access to insurance and pension products and services, cheaper delivery and better pricing. However, this trend needs to be closely monitored because of cyber risks and possible discriminatory pricing practices.
To consult the report: https://aeur.eu/f/4y6 (Original version in French by Anne Damiani)