EIOPA calls for clarity in IPIDs relating to natural catastrophe protection

Article summary

The European Insurance and Occupational Pensions Authority (EIOPA) has published a study analysing the clarity of disclosures in Insurance Product Information Documents(IPIDs) for natural catastrophe (NatCat) coverage in home insurance policies across eight European countries. The study assessed documents provided by insurers and found that while some offered detailed definitions and precise descriptions of natural catastrophe perils, others used ambiguous language and displayed inconsistencies regarding exclusions and optional coverage features. This variability in disclosure may cause consumers to inaccurately assess the extent of their NatCat protection. The study also outlines good practices for insurers to effectively provide information on NatCat coverage and exclusions.