The European Insurance and Occupational Pensions Authority (EIOPA) has launched today a consultation on an Open Insurance use case by publishing a Discussion Paper examining the key features of an insurance dashboard.
Open Insurance – enabling standardized exchanges of customer data between different financial product and services providers – could potentially provide benefits to consumers, the insurance sector and its supervision, but it also poses risks.
The paper is a follow up to an initial Discussion Paper on Open Insurance, after which EIOPA concluded that further work on more concrete, specific and detailed open insurance use cases might facilitate a better understanding of implications for consumers, industry and supervisors.
The insurance dashboard use case selected aims to give consumers an overview of all their insurance policies in one place, while allowing insurance providers to present information about their own products so that consumers may better compare coverages and prices. The use case was developed to draw out technical and supervisory challenges from the ground up by exploring how such a service could work in practice.
The Discussion Paper investigates the operational aspects of such a dashboard from a supervisory perspective, including data flows, stakeholder roles and responsibilities, standardisation and interoperability, as well as data protection and ethical considerations. Furthermore, it also outlines applicable legal frameworks, considers implementational challenges regarding data sharing and identifies benefits and risks. The consumer journey in navigating the use case is used to root the analysis in consumer touchpoints and risks.
Stakeholders are encouraged to participate in the consultation and provide their feedback until 24 October 2023 by responding to the questions presented in the Discussion Paper via the EUSurvey platform.
Notes and next steps
EIOPA will not build the insurance dashboard set out in the paper, now or in the future, and is not expecting this example to be developed by the market as such; EIOPA is not identifying it as a good or bad example of open insurance. The use case is instead intended as a theorical but concrete example so the supervisory community and market participants can get a better view on open insurance and related issues.
EIOPA remains committed to fostering an inclusive and cooperative approach to open insurance. The insights gathered during this consultation will help shape supervisory views on open insurance with the objective of enhancing consumer protection and promoting sound innovation in the insurance sector. While the Discussion Paper does not specifically address the European Commission’s legislative proposal on FIDA, and was prepared before that proposal was adopted, the feedback gathered through this consultation may help facilitate future technical discussions.