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European Insurance and Occupational Pensions Authority
News article15 June 2022

EIOPA reacts to stakeholder views on open insurance

Open Insurance - EIOPA

The European Insurance and Occupation Pensions Authority (EIOPA) published today a Feedback Statement on open insurance following a discussion paper and a public consultation on the topic. The document provides a high-level summary of the responses received from stakeholders as well as EIOPA’s reactions to them.

As part of its forward-looking approach to innovation, in its discussion paper, EIOPA had reflected upon the definition of open insurance, analysed existing use cases across the value chain, presented the risks and benefits of open insurance and considered regulatory barriers to encourage a broader discussion around the topic.

In their responses, stakeholders highlighted additional use cases apart from those featured in the paper, including better risk assessment, preventive measures and fraud detection. Respondents noted the potential of open insurance to improve pricing practices and transparency while also mentioning that open insurance would allow supervisors to access real-time data and thus help them identify poor advice and monitor automatic compliance.

Most stakeholders agreed with the benefits of open insurance identified by EIOPA. They highlighted increased efficiency and transparency, better tailor-made products, better understanding of risks as well as lower costs and increased digitalisation as some of the advantages. The majority of the respondents also concurred with EIOPA on potential risks including the security and misuse of data, the question of exclusions due to data or technological illiteracy, discrimination against certain consumers as well as concerns about consumers’ informed consent.

The approach to open insurance is a broad policy question. EIOPA’s engagement at this stage has been of a diagnostic approach and aimed at facilitating discussions by providing technical input.

The results of EIOPA’s public consultation show no strong agreement amongst stakeholders on potential next steps. It is clear that the policy issues raised by the debate on open insurance touch upon objectives and stakeholders of broader relevance and impact than solely within the financial sector itself.

In view of the feedback, EIOPA re-emphasises the potential of open insurance for consumers and for the sector, including in supervision, if managed adequately.

Next steps

EIOPA will continue monitoring legislative developments that may have a bearing on open insurance and will provide insurance and supervisory input where necessary. Relevant initiatives include the European Single Access Point proposal, the Data Act proposal and any upcoming proposals for a new open finance framework as signalled in the European Commission’s Digital Finance Strategy.

EIOPA might also further work on more concrete open insurance use cases (e.g. necessary data sets, risks, benefits) so as to facilitate a better understanding of implications for consumers, industry and supervisors.

It is of utmost importance to keep an open dialogue with all stakeholders.

View the feedback statement


Publication date
15 June 2022