European regulatory body the European Insurance and Occupational Pensions Authority (EIOPA) has announced that it is launching an investigation into the travel insurance industry.
EIOPA has said that the investigation has been caused by the ‘persistent appearance of consumer protection issues’ and that it will be analysing and assessing potential sources of consumer detriment stemming from how travel insurance products are designed, distributed and sold within the European Union.
In particular, EIOPA will be taking a look at the distribution practices of policies that are sold through cross-selling as an ancillary product. It wants to establish best practice guidelines to provide guidance to insurance undertakings in implementing national provisions of the Insurance Distribution Directive (IDD) for the distribution of travel insurance, as well as other types of insurance products.
EIOPA Chairman Gabriel Bernardino said: “Travel insurance has too often been under the spotlight with the persistent appearance of a number of consumer protection issues. This review will enable us to gain a deeper understanding of the reasons leading to potential consumer detriment and to identify the required actions that will better protect consumers.”
The EIOPA hopes to publish its findings in the first quarter of 2019.