Pension scheme members’ rights should be re-addressed in a paradigm shift in consumer protection, the European Insurance and Occupational Pensions Authority (EIOPA) stated today.

At a consumer strategy day in Frankfurt, EIOPA chair Gabriel Bernardino emphasised that conflicts of interest and market inefficiencies were both affecting the rights of pension scheme members, policyholders and beneficiaries. Bernardino called for a greater standardisation of strategy and policy tools to address these issues.

In addition, Bernardino stated that insurance companies and customers both have a part to play in this ‘shift in order for consumer protection to be improved effectively. Bernardino called for ‘secure and well capitalised insurance companies with sound strategies and robust risk management’ and also for customers to provide ‘relevant, comprehensive and accurate information on their personal situation so any necessary response is tailored to suit their needs.

In order to improve consumer protection, a number of consultations are currently in progress from the EIOPA. These include a report on good disclosure and selling practices for variable annuities and also a report on best practices on complaints handling by insurance undertakings.

“The purpose of the Consumer Strategy Day is to intensify dialogue with consumer representatives, industry, supervisors and other stakeholders and also to shape our priorities in terms of consumer protection and financial innovation,” Bernardino added.

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