On 1 August 2016, the European Insurance and Occupational Pensions Authority ("EIOPA") published a consultation paper on Implementing Technical Standards ("ITS") on the standardisation of the presentation of the insurance Product Information Document (the "PID"). The ITS may be accessed here. This will be provided to customers prior to conclusions of all non-life insurance lines, excluding large risks in accordance with the provisions of the Insurance Distribution Directive (the "IDD").
The purpose of the PID is to ensure that key information relating to in-scope products is presented to the customer in a standardised and simplified manner so that the customer can compare different in-scope products to one another.
The format of the information contained in the PID should be clear and easy to read and should be written in a font of a readable size. As for the colour of the documentation, it is specified that the document should be no less comprehensible in the event of it being photocopied in black and white where it was being originally designed in colour.
In regard to the material content of the PID, certain information including the type of insurance cover, payment methods, risk exclusions, obligations of the insured and insurer, duration of the contract, and the means of termination should all be contained therein.
In addition, a member state may still require that a stricter approach is applied. Member states may impose additional requirements, including the provision of mandatory advice prior to the sale of a non-life insurance product. In these cases, insurance distributors (including those exercising passporting rights) must comply with stricter member state rules when concluding insurance contracts with customers who have their habitual residence or establishment in the relevant member state.
Member states may also limit or prohibit the acceptance or receipt of fees, commissions or other monetary or non-monetary benefits paid or provided to insurance distributors by any third party (or a person acting on behalf of a third party) in relation to the distribution of insurance products.
EIOPA must submit the draft ITS relating to the PID to the European Commission by 23 February 2017, after consulting national authorities and after consumer testing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
