Natural catastrophes, is your home covered?

EIOPA's study highlights the importance of clearer, and more consumer-friendly information disclosures regarding the natural catastrophe coverage of home insurance policies. EIOPA's analysis of Insurance Product Information Documents (IPIDs) shows that while many insurers demonstrate good practices in disclosing essential information, there is still room for improvement in ensuring that consumers can make more informed decisions.

The findings confirm that well-implemented IPIDs can be useful in helping consumers better understand the features of insurance policies. In particular, some good practices were observed that ensured consumers were given sufficient and accurate information, without overloading them. These include undertakings providing a detailed taxonomy of NatCat perils in the terms and conditions to facilitate consumers’ understanding.