Insurance Europe continues to highlight the fact that it is extremely important that the features of insurance-based investment products are appropriately presented in the key information document (KID) for packaged retail investment and insurance-based investment products (PRIIPs).
In particular, it reminds policymakers that the Level 1 PRIIPs Regulation introduces a section in the KID on costs, which should include “the costs associated with an investment in the PRIIP” and, should, therefore, not include the insurance premium.
In this context, Insurance Europe has published key messages on the presentation and design of the KID for PRIIPs. It stresses that, when consumers are freely choosing an insurance-based investment product, they are looking for both beneficial investment opportunities and for insurance protection. The paper underlines the benefits that the life insurance part of insurance-based investment products may offer to consumers and highlights that these benefits, which are unique to insurance-based investment products, are secured by the payment of an insurance premium.
Furthermore, it points out that, in addition to the PRIIPs Regulation, insurance PRIIPs also fall under the EU distribution framework.