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
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
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.
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