EIOPA - European Insurance and Occupational Pensio : EIOPA issues good practices on websites that compare insurance products

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EIOPA issues good practices on websites that compare insurance products
• Good practices seek to promote transparency, simplicity and fairness in the market for online comparisons of insurance products.
• A comparison website should disclose those providers with whom a comparison
website has a commercial, contractual or ownership relationship;
• A comparison website should not use price as the sole criterion for comparison;
• A comparison website should avoid jargon and unnecessary technical terms.
Frankfurt, 30 January 2014 - The European Insurance and Occupational Pensions Authority (EIOPA) today issued a report which outlines good practices for websites that compare insurance products. The Report gives guidance on the following topics: information about the comparison site itself, the market coverage of the site, how the site deals with conflicts of interest, the criteria used to make the ranking of providers and products, and the presentation and the frequency of updating the information.
EIOPA considers it, for example, good practice for a comparison website to
• give clear and easy-to-find information about who to contact with complaints about the products purchased via the website;
• disclose those providers with whom a comparison website has a commercial, contractual or ownership relationship;
• present clearly and in detail main features and characteristics of products, insurance cover and limitations;

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• not use price as the sole criterion for comparison and provide the user with the final premium and details of all fees and charges;
• communicate in a clear and simple language, avoiding jargon and unnecessary technical terms.
Comparison websites are used by consumers primarily as a source of information; some also make use of the possibility to buy contracts online. Overall, comparison websites stimulate competition between insurers and intermediaries.
The good practices outlined in the report are based on the input from EIOPA Members, position papers as well as guidance provided at national level.
Gabriel Bernardino, EIOPA's Chair: "When identifying consumer trends we could designate comparison websites as an emerging trend. We warmly welcome this trend because these comparison sites help to enhance the transparency and comparability of information available to consumers, but only if they fulfil basic requirements. EIOPA conducted an in-depth analysis of the topic and our report will promote transparency, simplicity and fairness for consumers, which is key to EIOPA."

Note for Editors:

The European Insurance and Occupational Pensions Authority (EIOPA) was established on 1

January 2011 as a result of the reforms to the structure of supervision of the financial sector in the

European Union.

EIOPA is part of the European System of Financial Supervision consisting of three European Supervisory Authorities, the National Supervisory Authorities and the European Systemic Risk Board. It is an independent advisory body to the European Commission, the European Parliament and the Council of the European Union.

EIOPA's core responsibilities are to support the stability of the financial system, transparency of markets and financial products as well as the protection of insurance policyholders, pension scheme members and beneficiaries.