With this warning EIOPA is calling on insurers and banks (acting as insurance distributors) to ensure CPI products offer fair value to consumers by:
- taking action to address issues with high remuneration paid by insurance manufacturers to insurance distributors for the sale of credit protection insurance (CPI) products , and
- preventing detrimental conflicts of interest in the context of bancassurance business models from arising.
This warning follows a thematic review on the functioning of the EU market for CPI products sold with mortgages, consumer credits and credit cards, which revealed a number of practices that could cause detriment to consumers.