The European Insurance and Occupational Pensions Authority (EIOPA) published the results of its first EU-coordinated mystery shopping exercise, assessing how insurance-based investment products (IBIPs) are sold across eight EU Member States and identifying gaps in disclosure, transparency and consumer outcomes. The exercise was designed to gather first-hand insights into sales practices in real-life interactions, rather than to assess compliance. Trained shoppers visited insurers, banks, agents, brokers and post offices, and provided feedback via standardised questionnaires on distributors’ information-gathering and product disclosures, including costs, risks, key information documents (KIDs) and sustainability disclosures. Most distributors (74%) asked about shoppers’ ability to hold products for the recommended period, but results were weaker for questions on risk tolerance and sustainability preferences. More than two thirds provided information on risks, expected returns and recommended holding periods, while complete cost information was provided in less than half of interactions; when KIDs were provided, they supported shoppers’ understanding. EIOPA’s review of whether products discussed aligned with shoppers’ profiles found that 84% of products were consistent with at least one pre-identified need or objective, but there was limited correlation between more thorough sales processes and better alignment, suggesting the process may need simplification. EIOPA indicated it will further analyse instances of poor consumer outcomes and assess whether layering distribution requirements over time may have inadvertently reduced benefits for consumers, including whether a more outcome-oriented approach combined with simple, transparent products offering value for money could improve results.
European Insurance and Occupational Pensions Authority 2025-06-17
European Insurance and Occupational Pensions Authority publishes first EU-coordinated mystery shopping results on insurance-based investment product sales
The European Insurance and Occupational Pensions Authority (EIOPA) conducted its first EU-coordinated mystery shopping exercise, revealing gaps in disclosure and transparency in selling insurance-based investment products across eight EU Member States. Most distributors asked about product holding periods, but fewer addressed risk tolerance and sustainability preferences, with complete cost information provided in less than half of interactions. EIOPA plans to analyze poor consumer outcomes and consider a more outcome-oriented approach with simpler, transparent products to enhance consumer benefits.