Insurance Europe welcomes the ambition of the EU’s Savings and Investment Union (SIU) to boost retail participation in capital markets. Insurance Europe however cautions that the European Commission’s latest plan to develop savings and investments ‘‘accounts’’ will fall short unless it includes insurers as product providers and insurance within its scope. This would help increase consumer choice, increase market competition and drive innovation.
In its consultation response, the federation stresses that insurers are close to people due to their wide network of distributors. The insurance industry gives peace of mind to many savers who would not otherwise dare to invest, by offering financial guarantees and insurance protection. Moreover, insurers offer a range of life investment and pension products that enable people with differing needs and risk profiles to invest in capital markets.
Thea Utoft Høj Jensen, Director General of Insurance Europe, commented: ‘Any EU savings and investments plan must be inclusive. Insurers are uniquely placed to reach as many people as possible, due to their extensive distribution networks and range of products. Excluding insurance would also be a missed opportunity to help tackle Europe's pension gap and channel investment towards the green transition'.
Insurance Europe therefore calls on the European Commission to ensure that the forthcoming recommendation is inclusive, promoting a wide range of investment and insurance solutions rather than restricting its scope to ‘‘accounts’’.
The federation also emphasises the importance of national tax incentives for products that bring societal benefits, and in the key role of financial and insurance education to increase citizens’ awareness about the different investment opportunities available in the market.