On October 4th, 2022 the European Insurance and Occupational Pensions Authority (EIOPA) issued a warning pursuant to Article 9, paragraph 3, of Regulation (EU) no. 1094/20104 with which it warns insurers and banks (as insurance distributors) on the high levels of remuneration and the presence of conflicts of interest in the sale of credit protection insurance products.
EIOPA expects all insurers and banks acting as insurance distributors to fully comply with the Insurance Distribution Directive (IDD), including product supervision and governance (POG) requirements, and to take action to address issues with high remuneration and prevent harmful conflicts of interest.
EIOPA expects the industry to improve consumer outcomes with CPI products, making sure they meet the needs of the target market.
In this direction Algoritmic® is evolving its offer system in favor of insurance companies and their distributors:
- strengthening its line of business of consulting on insurance distribution with the entry of Antonia Boccadoro;
- developing a proprietary model for evaluating the value for money for non-IBIPS insurance products based on the theory of expected utility.