Article 25, IDD does not exempt any category of insurance product, except those covering large risks. For compulsory insurance products, it should be considered that these products can offer not only mandatory guarantees but also customization parameters and other guarantees. For example, in some Member States, motor third party liability insurance offer different driving formulas (e.g. expert/free/exclusive). These parameters can have significant tariff effects, which could be relevant for the identification of the target market.

Given the above, for easiness, EIOPA proposes the following illustrative  distinction can be made between: (1) the situation in which the customer is required to have the insurance product and the insurance undertaking is required to accept the customer and (2) the situation in which the customer is required to have the insurance product and the insurance undertaking is not required to accept the customer. 

(1) If the insurance undertaking is required by law to accept the customer (also defined by law), target market is in accordance with the information provided by law (i.e. the legal definition);

(2) If the insurance undertaking is not required by law to accept the customer, the information provided by the law is the basis for the identification of the target market.