In March 2025, EIOPA provided clarification in Q&A 3168 (see here) regarding the regulatory treatment of insurance comparison websites under the Insurance Distribution Directive (IDD).
This guidance is particularly relevant for insurers and intermediaries leveraging digital platforms to distribute products.
The regulatory uncertainty lies in whether such websites, by facilitating access to insurance products, are engaging in "insurance distribution" as defined in Article 2(1)(1) of the IDD. The questioner sought clarity on a specific aspect of the "insurance distribution" definition, namely:
"the provision of information concerning one or more insurance contracts in accordance with criteria selected by customers through a website or other media, the compilation of an insurance product ranking list, including price and product comparison, or a discount on the price of an insurance contract, when the customer is able to directly or indirectly conclude an insurance contract using a website or other media."
EIOPA was asked to provide concrete examples of when this threshold is met – particularly in cases where the comparison website redirects users to another platform to apply for a product. Specifically, it was asked whether comparison websites, at the end of the comparison process, guide users to a concrete and specific insurance offer and allow them to apply for the product, either directly on the site or via a hyperlink to an insurer's or intermediary's site, can be deemed to fall within the scope of insurance distribution? It was also questioned whether less direct referrals, such as links to generic product pages or product simulation pages, could similarly be considered enabling an indirect conclusion of an insurance contract, thereby falling within the definition of insurance distribution under IDD.
In its response to Q&A 3168, EIOPA emphasises that the definition of insurance distribution must be interpreted broadly, in line with the IDD's objectives of ensuring high consumer protection and a level playing field across distribution channels. Accordingly, comparison websites can constitute insurance distributors if they meet two criteria:
- The activity of providing information on insurance contracts for remuneration in response to criteria selected by the customer, or the provision of a ranking of insurance products, including price and product comparison or a discount on the price of an insurance product; and
- The ability of the customer to directly or indirectly conclude an insurance contract at the end of the process. These criteria could notably depend on the extent to which the provider/comparison website takes additional steps to assist the customer in the conclusion of that insurance contract.
EIOPA considers the following as indicative of insurance distribution:
- Requiring users to complete pre-purchase questionnaires or select options from drop-down menus to filter sales, particularly where the questionnaire is prepopulated, and specific products are suggested.
- Collecting detailed personal data (e.g. age, claims history, medical conditions) to generate tailored product suggestions.
These actions demonstrate the taking of additional steps in assisting in the conclusion of an insurance contract, thereby falling within the scope of "insurance distribution".
Conversely, EIOPA clarifies that the following does not constitute insurance distribution under IDD:
- Merely listing insurance products or distributors with hyperlinks to website homepages or generic product pages.
- Providing information or hyperlinks on a specific product but instructing the customer to contact a distributor independently, without further facilitation or recommending the product's suitability to the customer.
Such activities are classified under Article 2(2) of the IDD as the "mere provision of information," which is excluded from the definition of insurance distribution.
EIOPA concludes that a case-by-case assessment is essential, considering the type and complexity of the insurance product.
EIOPA's Q&A 3168 serves as a timely reminder that the line between the provision of information and insurance distribution is incredibly nuanced.
Contributed by Caitlin Lenihan
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