The EIOPA IBIP supervisory statement is a draft issued for consultation by EIOPA on sales of insurance-based investment products (IBIPs). Its stated aim is to support a more proportionate and risk-based supervisory approach to IBIP sales requirements.
Supervisory Approach and Proportionality in the Draft Statement
In its announcement, EIOPA states the objective of its draft Supervisory Statement: to help supervisors calibrate their engagement with insurance manufacturers and distributors by complementing compliance-based supervision.
According to the announcement, the draft Statement proposes asking national supervisors to consider whether sales processes and disclosures operate effectively and support informed consumer decision-making.
In the Consultation Paper, the draft text reads: “In applying proportionality and supervisory judgement, NCAs should take into account the diversity of products, consumers and distribution models, as well as the nature and significance of the risks identified, recognising that a one-size-fits-all approach may not be appropriate.”
On the question of how much information is collected and how many process steps are added, the Consultation Paper reads: “Collecting additional information, adding process steps or requiring more documentation does not necessarily improve consumer outcomes where the information required has already been obtained and is sufficient and relevant for the distribution model, product and consumer concerned.”
On the question of questionnaires and documentation, the Consultation Paper states that outcomes-focused supervision does not assume that more detailed questionnaires, additional documentation or the collection of larger amounts of information necessarily lead to better consumer outcomes.
On the question of the volume of information that a distributor provides, the draft text reads: “The fact that a distributor provides all information required by applicable law should not in itself give rise to an adverse supervisory assessment on the basis of the volume of information provided.”
On the question of where closer supervisory scrutiny may focus, the draft text reads: “Closer scrutiny may be warranted, for example, where deficiencies concern material information such as the customer’s investment horizon, ability to bear losses or relevant knowledge and experience.”
On the question of remuneration and incentive arrangements, the Consultation Paper describes an assessment that is not intended to prescribe specific remuneration or incentive models, but to consider whether, in practice, such arrangements create incentives that may adversely affect consumer outcomes and, where they do, whether the related risks are appropriately mitigated.
Market Findings Behind the Draft
On the question of what its monitoring work has found, EIOPA says in the announcement that its market monitoring and oversight work have identified several areas where existing consumer protection safeguards may not always operate as effectively as intended. The areas EIOPA identified include:
- sales processes that focus on mechanically completing procedural steps
- lengthy or complex disclosures, which make key information difficult to identify and understand
- sales assessments that do not always meaningfully inform the outcome of the sales process
The Consultation Paper refers to EIOPA’s supervisory convergence and market monitoring activities, which have highlighted differences across Member States in the practical application and supervision of requirements relevant to IBIP sales processes and disclosures.
The Consultation Paper also refers to pre-contractual disclosures whose overall volume, complexity or presentation may in practice make it more difficult for consumers to identify and understand key information.
On the question of customer journeys, the Consultation Paper reads: “Moreover, EIOPA’s work also noted that the current practices and approaches may result in unnecessarily complex customer journeys and burdens for consumers, insurance undertakings and intermediaries, without necessarily improving consumer outcomes.”
On the question of the policy issue that the draft addresses, the Consultation Paper says: “The identified policy issue concerns differences in supervisory practices in the application of existing regulatory requirements, rather than a regulatory gap or a need to establish new requirements.”
Scope of the Draft: No New Requirements
On whether the draft introduces new obligations, EIOPA’s announcement states that the draft Statement seeks to promote greater consistency in the supervision of IBIP sales without introducing new regulatory requirements, additional reporting obligations or a prescribed supervisory methodology.
The Consultation Paper says that the Statement is intended to clarify supervisory expectations within the existing framework and does not introduce new regulatory requirements.
On the question of methodology, the Consultation Paper reads: “The considerations, examples and indicators set out in this Statement are intended to support supervisory judgement, risk assessment and prioritisation rather than prescribe a single methodology or uniform set of supervisory actions.”
InsuraBeat has separate coverage of EIOPA’s peer review follow-up on product oversight and governance.
Consultation Process and Timetable
On the consultation deadline, EIOPA’s announcement says that stakeholders are invited to submit their feedback via the online survey no later than 4 January 2027.
On the question of what EIOPA asks of stakeholders in the consultation, the announcement indicates that EIOPA is seeking concrete examples of unnecessary complexity or duplication, together with stakeholders’ views on priorities for simplification and the safeguards and trade-offs that need to be considered.
On the question of a public hearing during the consultation period, EIOPA states that it will also hold an online public hearing during the consultation period.
On the question of the timetable for the final text of the Statement, EIOPA states that it expects to finalise the Statement in the first quarter of 2027.
On the question of later EIOPA work, the announcement states: “Feedback received may also inform future EIOPA work related to the Retail Investment Strategy, including on simple advice and suitability and appropriateness”.
InsuraBeat has separate coverage of EIOPA’s cut to Solvency II reporting templates.
