Insurance Europe: Making EU insurance regulation that works and benefits consumers
Article Synopsis :
This short paper from Insurance Europe – IE, the European insurance and reinsurance federation – is focused on the debate about better regulation.
It agrees that consumer protection should be the focus of EU legislation, as that held consumers buy the products that suit their needs the best.
If consumers trust the products they buy, so this strengthens the industry as a whole and helps it to function better.
However, that isn’t always the case. EU financial services regulation does not always benefit consumers and the current regulatory processes do not always result in good outcomes.
IE is encouraged that the new European Commission has recognised this failing. It also welcomes the plan for an evidence one in/one out approach to regulation, instead of drafting and releasing a raft of new policies.
Yet, IE believes a lot more can be done to address the EU regulatory process’s shortcomings.
It has developed a five point plan – the five A’s – that are as follows:
- Avoid continual regulatory changes;
- Avoid legal uncertainty;
- Avoid inconsistencies, overlaps and duplication;
- Avoid unfit rules and disclosures that mislead consumers;
- Avoid implementation timelines that are too short.
There is a great deal more detail to each of these manifesto points, but the paper makes a concise and accessible job of demonstrating to policymakers how they can ensure that the regulation they propose with the best of intentions does not prove to be detrimental to consumers.
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Digital Insurer's CommentsIt’s hard to argue with a sensible approach to regulation that will protect consumers and avoid unintended consequences that came detriment.
This short, accessible paper makes many good points as to how the regulatory process might be streamlined without compromising on the core tenet of consumer protection.
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