European regulator vows action amid worrying lack of consumer protection
The European Insurance and Occupational Pensions Authority has launched an investigation into travel insurance.
The European regulator is worried about ’the persistent appearance of a number of consumer protection issues.’
Brokers and others in the distribution chain will be a particular source of investigation for EIOPA.
Above all, the cross-selling of travel insurance as an ancillary product will come under the microscope.
EIOPA will work closely with national regulators, who will then call upon the insurers and brokers.
The European Union-wide thematic review comes shortly after the FCA announced its own findings into one of the most controversial areas of insurance.
EIOPA chairman Gabriel Bernardinochairman 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.”
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