Question ID: 3383
Regulation Reference: (EU) No 2016/97 - Insurance Distribution Directive
Topic: Demands and needs test (Art. 20 para. 1 subpara. 1 IDD), Cross-selling (Art. 24 IDD)
Article: art. 24(3) and 20
Status: Question forwarded to the European Commission
Date of submission: 16 Jul 2025
Question
The first question is: Does the exception in Article 24(3), second subparagraph, apply to travel insurance sold together with a credit card? A credit card is not a payment account as defined in Article 2(3) of Directive 2014/92/EU, but a credit card typically is linked to an underlying payment account. Is the sale of travel insurance together with a credit card therefore covered by the ex-ception, or does the requirement to offer the insurance separately apply? The second question is: Depending on the answer to the first question, to what extent is a de-mand and needs assessment required under Article 20 of the IDD when travel insurance is sold as an inseparable part of a credit card package? We would appreciate EIOPA’s clarification on the application of these provisions in the context described.
Background of the question
Regarding the regulatory requirements applicable to banks that offer cred-it cards with an attached travel insurance, where the insurance cannot be opted out of. These cases raise concern about double insurance and the demands and needs assessment required under Article 20 of Directive (EU) 2016/97 on insurance distribution (IDD) when, for example, travel insurance is sold together with a credit card as part of a package. This issue is related to Article 24(3) of the IDD on cross-selling, which states: "Where an insurance product is ancillary to a good or a service which is not insurance, as part of a package or the same agreement, the insurance distributor shall offer the customer the possibility of buying the good or service separately. This paragraph shall not apply where an insurance product is ancillary to an investment service or activity as defined in point 2 of Article 4(1) of Directive 2014/65/EU, a credit agreement as defined in point 3 of Article 4 of Directive 2014/17/EU of the European Parlia-ment and of the Council, or a payment account as defined in point 3 of Article 2 of Directive 2014/92/EU of the European Parliament and of the Council.”