The Insurance Product Information Document – yet more box ticking?

Under the Insurance Distribution Directive, general insurance distributors in the European Union must provide consumers with a standardised document outlining key information about the product they are considering. Yet, more paper will not necessarily result in customers being better informed, argues Noline Matemera.

Noline Matemera (noline.matemera@TLTsolicitors.com) is a partner with TLT Solicitors in London who advises asset managers, banks, insurers and intermediary firms. She has previously spent several years working with the Financial Services Authority and more recently been seconded to a major global bank.

It is said that, “Information is power and hiding information is a form of tyranny.” Against this background, the European Insurance and Occupational Pensions Authority (EIOPA) is proposing to introduce the Insurance Product Information Document (IPID), a pre-contractual summary document designed to provide prospective general insurance policyholders with the key information needed to understand and, most importantly, compare insurance policies across different providers.