The European Insurance and Occupational Pensions Authority (EIOPA) published, today, its 2019 Consumer Trends Report outlining major developments in the insurance and pensions sectors affecting European consumers.
Improvements in disclosure practices have been seen and digitalisation remains a broadly noteworthy trend, showing that financial innovations can bring benefits for both insurers and consumers, so long as they are adequately designed and properly implemented.
Accident and health insurance products continue being ‘good value-for-money’, with the medical expense line of business having the highest claims ratio and the lowest commission rates for non-life insurance products.
Conduct issues related to unit-linked, credit life/credit protection insurance and add-on insurance products have become more prevalent. Claims management in motor insurance, in particular in some markets, also remains an area of concern.
Unit-linked insurance. Concerns continue on the poor levels of consumer understanding, product complexity, unmitigated conflicts of interests, and poor returns – sometimes due to unnecessarily high costs. Issues were identified on the sale of unit-linked policies to vulnerable consumer groups.
Credit life and credit protection products. These are increasingly under the supervisory scrutiny of NCAs and EIOPA. Even though they can bring significant benefits to consumers, potential for consumer detriment exists given generally high commissions that can lead to unmitigated conflicts of interests and some aggressive sales techniques. A data analysis shows that the ratio of acquisition expenses over gross written premiums, an indicator of commission levels, is high for other life insurance, with 151 insurance undertakings above 30% and 50 above 50%.
Add-on insurance. Despite bringing peace of mind to consumers and generally being a low cost product, add-on insurance is also a potential source of consumer detriment across several European markets. Concerns relate to the possible exploitation of behavioural biases in the context of an increase in cross-selling practices and high commissions.
Innovations in the motor insurance. These are broadly noteworthy, with an increase in policies being sold through comparison websites and an increasing uptake of telematics. However motor insurance-related complaints, due to claims management issues, continue to be the most prevalent complaints and have increased by 6% at the EEA level.
For pensions, with life expectancy increasing, a strain is being put on the decumulation phase. To address this issue, changes and innovations – such as lifecycling or delayed retirement – are taking place.
Moreover, effective and clear communication with members is essential for them to be aware of both the product’s characteristics and their pension situation. Given that more members prefer online and more interactive communication, innovations are taking place across several countries. Publicly or privately run pensions dashboards are also appearing, making it easier for consumers to access information on their overall pension situation.
Looking ahead, although regulatory changes that came into force in 2018 (Insurance Distribution Directive and the Packaged Retail and Insurance-based Investment Products Regulation) are already showing some positive developments — mainly in relation to disclosures — it is anticipated that there will be an increasing focus on product oversight and governance, to ensure that products are adequately designed and targeted, thereby ensuring good consumer outcomes.
Gabriel Bernardino, Chairman of EIOPA, said:
‘Understanding consumer trends is an essential part of our work to identify where customers might suffer because of poor practices or lack of information. Despite evidence of improved disclosures, problems remain with product design and product review processes and undertakings and distributors must take responsibility for improving consumer outcomes. At the same time, where EIOPA identifies areas for concern we will take action. This was the case for certain business models in travel insurance, where EIOPA recently issued a warning. In 2020, we will launch a comprehensive thematic review on mortgage life and other credit protection insurance sold through banks, to gather evidence on areas of potential consumer detriment.
View the whole report here
Compliments of the European Commission

December 12 – At today’s meeting the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.
On 1 November net purchases were restarted under the Governing Council’s asset purchase programme (APP) at a monthly pace of €20 billion. The Governing Council expects them to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates.
The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when it starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.

On 12 December, EU leaders discussed climate change, the EU’s long-term budget and external relations, among other issues. On 13 December, they focused on the economic and monetary union and Brexit.
Climate change
EU leaders endorsed the objective of making the EU climate-neutral by 2050, in line with the Paris Agreement. They underlined that the transition to climate neutrality will bring significant opportunities for economic growth, markets, jobs and technological development. Poland, at this stage, could not commit to implementing this objective, which is why the European Council will come back to this issue in June 2020.
The European Council took note of the Commission communication on the European Green Deal and asked the Council to take work forward.
Leaders recognised the need to put in place an enabling framework to ensure a cost-effective, as well as socially balanced and fair transition to climate neutrality, taking into account different national circumstances.
The European Council underlined that the next multiannual financial framework (MFF) will significantly contribute to climate action. Tailored support for regions and sectors most affected by the transition will be made available from the Just Transition Mechanism.

“All relevant EU legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate neutrality objective while respecting a level playing field.”
European Council conclusions, 12 December 2019

The European Council recognised that all relevant EU policies need to be in line with the climate-neutrality objective and invited the Commission to examine whether existing rules, including on state aid and public procurement, require adjustment. It also asked the Commission to report regularly on the environmental and socio-economic impact of the transition to climate neutrality.
EU leaders acknowledged the need to ensure energy security and to respect the right of the member states to decide on their energy mix and to choose the most appropriate technologies. Some countries have indicated that they use nuclear energy as part of their national energy mix.
Finally, leaders invited the Commission to prepare:
a proposal for the EU’s long-term strategy as early as possible in 2020 with a view to its adoption by the Council and its submission to the UNFCCC
after a thorough impact assessment, a proposal for an update of the EU’s nationally determined contribution (NDC) for 2030 under the Paris Agreement
Climate change: what the EU is doing (background information)
Taking the lead on climate change (multimedia story)
Long-term EU budget
The European Council discussed the main features of the multiannual financial framework (MFF) for 2021-2027. This followed the presentation of the MFF negotiating box with figures by Finland’s presidency.
EU leaders called on the European Council President Charles Michel to take the negotiations forward with the aim of reaching a final agreement.
Multiannual financial framework for 2021-2027: negotiations
Conference on the Future of Europe
The European Council considered the idea of a Conference on the Future of Europe, starting in 2020 and ending in 2022, to involve the Council, the European Parliament and the Commission in their respective roles.
External relations
EU-Africa partnership
EU leaders reaffirmed the importance of the EU-Africa partnership. They stressed the need for a strategic discussion, on Africa relations and on the next EU-African Union summit, at the June 2020 European Council.
EU-Africa relations (background information)
Relations with Russia
Chancellor Merkel and President Macron informed the leaders about the implementation of the Minsk agreements, following the meeting in Normandy format on 9 December 2019 in Paris. EU leaders agreed to roll over the economic sanctions on Russia for another 6 months.
Turkey
EU leaders discussed relations with Turkey, in light of Turkey’s actions in the Eastern Mediterranean and Aegean Sea. They reconfirmed previous Council conclusions condemning Turkey’s illegal drilling activities in the Eastern Mediterranean. They also denounced the Turkey-Libya Memorandum of Understanding on the delimitation of maritime jurisdictions and reaffirmed their full solidarity with Greece and Cyprus on this matter.
Turkey’s illegal drilling activities in the Eastern Mediterranean: Council adopts conclusions, 14 October 2019
Albania
The European Council expressed solidarity with Albania in light of the recent earthquake. EU leaders welcomed the Commission’s announcement to provide humanitarian assistance and to organise a donors’ conference.
Trade
The European Council reiterated its full support for the global rules-based international order and noted with concern the paralysis of the World Trade Organisation’s (WTO) mechanism for settling disputes.
Leaders supported the European Commission’s efforts to set up interim arrangements with third countries while actively pursuing a permanent solution. In that connection, the European Council called on the European Parliament and the Council to examine the Commission’s proposal to adapt the EU legislation referring to the EU’s rights under international trade agreements.
Economic and monetary union
EU27 leaders took stock of progress made on the implementation of the June 2019 Statement of the Euro Summit, including the:
revision of the European Stability Mechanism (ESM) Treaty
budgetary instrument for convergence and competitiveness (BICC)
technical work on the strengthening of the banking union
Euro Summit, 13 December 2019
Brexit
EU27 leaders discussed Brexit and preparations for the negotiations on future EU-UK relations after the withdrawal. They reconfirmed their aim of establishing as close as possible future relationship with the UK and welcomed the Commission’s decision to reappoint Michel Barnier.
Special European Council (Art. 50), 13 December 2019
Compliments of the European Commission

Today, the European Commission unveiled a proposal that will allow the European Union to protect its trade interests despite the paralysis of the multilateral dispute settlement system in the World Trade Organization (WTO). To further increase the focus on compliance and enforcement of the EU’s trade agreements, the Commission created today the position of Chief Trade Enforcement Officer.
President of the European Commission, Ursula von der Leyen, said: “A stronger Europe in the world implies efficient EU leadership on global trade and appropriate powers to ensure that international trade rules are respected. For that reason, I start my mandate by taking swift action to strengthen our trade toolbox. Today’s proposals will let us defend our interests in these particularly uneasy times for international trade. As many European jobs are at stake, the EU needs to be equipped to ensure that our partners respect their commitments and that’s what this proposal aims for.”
Commissioner for Trade, Phil Hogan, said: “This is a critical moment for multilateralism and for the global trading system. With the Appellate Body removed from the equation, we have lost an enforceable dispute settlement system that has been an independent guarantor that the WTO’s rules are applied impartially. Whilst we seek to reform the WTO and re-establish a well-functioning WTO system, we cannot afford being defenceless if there is no possibility to get a satisfactory solution within the WTO. The amendments we propose will allow us to defend our companies, workers and consumers, whenever our partners do not play by the rules.”
Today’s proposal to amend the existing Enforcement Regulation comes as a direct reaction to the blockage yesterday of the operations of the WTO Appellate Body. The current regulation – a basis under EU law for adopting trade countermeasures – requires that a dispute go all the way through the WTO procedures, including the appeal stage, before the Union can react. The lack of a functioning WTO Appellate Body allows WTO Members to avoid their obligations andescape a binding ruling by simply appealing a panel report.
The Commission’s proposal will enable the EU to react even if the WTO is not delivering a final ruling at the appellate level because the other WTO member blocks the dispute procedure by appealing into the void.
This new mechanism will also apply to the dispute settlement provisions included in regional or bilateral trade agreements to which the EU is party. The EU must be able to respond resolutely in case trade partners hinder effective dispute settlement resolution, for instance, by blocking the composition of panels.
In line with the Political Guidelines of President von der Leyen, the Commission is further reinforcing the Union’s tools to focus on compliance and enforcement of the EU’s trade agreements and created the post of Chief Trade Enforcement Officer that will be filled in early 2020.
Ensuring the respect of the commitments agreed with other trade partners is a key priority of the von der Leyen Commission. The EU is therefore increasing its focus on enforcing its partners’ commitments in multilateral, regional and bilateral trade agreements. In so doing the Union will rely on a suite of instruments. The proposal presented today will now be subject to validation by the European Parliament and the EU Member States in the Council in a normal legislative process.
Compliments of the European Commission

The Governing Council of the European Central Bank (ECB) today adopted an opinion on a recommendation from the Council of the European Union on the appointment of a member of the ECB’s Executive Board.
The Governing Council had no objection to the proposed candidate, Isabel Schnabel, who is a person of recognised standing and professional experience in monetary or banking matters, as required by Article 283(2) of the Treaty on the Functioning of the European Union. Ms Schnabel currently serves as a member of the German Council of Economic Experts and is a professor for financial economics at Bonn University.
Following the Governing Council’s opinion and an opinion of the European Parliament, the new member of the Executive Board will be appointed by the European Council. The Governing Council’s opinion, which will be published shortly in the Official Journal of the European Union, will be made available on the ECB’s website in all official EU languages.
Ms Schnabel will serve a non-renewable eight-year term, succeeding Sabine Lautenschläger, who resigned from her position with effect from 31 October 2019.
Compliments of the European Central Bank

The European Commission today presented The European Green Deal – a roadmap for making the EU’s economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the transition just and inclusive for all.
President Ursula von der Leyen said: ‘The European Green Deal is our new growth strategy – for a growth that gives back more than it takes away. It shows how to transform our way of living and working, of producing and consuming so that we live healthier and make our businesses innovative. We can all be involved in the transition and we can all benefit from the opportunities. We will help our economy to be a global leader by moving first and moving fast. We are determined to succeed for the sake of this planet and life on it – for Europe’s natural heritage, for biodiversity, for our forests and our seas. By showing the rest of the world how to be sustainable and competitive, we can convince other countries to move with us.‘
Executive Vice-President Frans Timmermans added ‘We are in a climate and environmental emergency. The European Green Deal is an opportunity to improve the health and well-being of our people by transforming our economic model. Our plan sets out how to cut emissions, restore the health of our natural environment, protect our wildlife, create new economic opportunities, and improve the quality of life of our citizens. We all have an important part to play and every industry and country will be part of this transformation. Moreover, our responsibility is to make sure that this transition is a just transition, and that nobody is left behind as we deliver the European Green Deal.’
The European Green Deal provides a roadmap with actions to boost the efficient use of resources by moving to a clean, circular economy and stop climate change, revert biodiversity loss and cut pollution. It outlines investments needed and financing tools available, and explains how to ensure a just and inclusive transition.
The European Green Deal covers all sectors of the economy, notably transport, energy, agriculture, buildings, and industries such as steel, cement, ICT, textiles and chemicals.
To set into legislation the political ambition of being the world’s first climate neutral continent by 2050, the Commission will present within 100 days the first ‘European Climate Law’. To reach our climate and environmental ambition, the Commission will also present the Biodiversity Strategy for 2030, the new Industrial Strategy and Circular Economy Action Plan, the Farm to Fork Strategy for sustainable food and proposals for pollution-free Europe. Work will immediately start for upping Europe’s 2030 emissions targets, setting a realistic path to the 2050 goal.
Meeting the objectives of the European Green Deal will require significant investment. Achieving the current 2030 climate and energy targets is estimated to require €260 billion of additional annual investment, representing about 1.5% of 2018 GDP. This investment will need the mobilisation ofthe public and private sectors. The Commission will present in early 2020 a Sustainable Europe Investment Plan to help meet investment needs. At least 25% of the EU’s long-term budget should be dedicated to climate action, and the European Investment Bank, Europe’s climate bank, will provide further support. For the private sector to contribute to financing the green transition, the Commission will present a Green Financing Strategy in 2020.
Fighting climate change and environmental degradation is a common endeavour but not all regions and Member States start from the same point. A Just Transition Mechanism will support those regions that rely heavily on very carbon intensive activities. It will support the citizens most vulnerable to the transition, providing access to reskilling programmes and employment opportunities in new economic sectors.
In March 2020, the Commission will launch a ‘Climate Pact’ to give citizens a voice and role in designing new actions, sharing information, launching grassroots activities and show-casing solutions that others can follow.
The global challenges of climate change and environmental degradation require a global response. The EU will continue to promote its environmental goals and standards in the UN’s Biodiversity and Climate Conventions and reinforce its green diplomacy. The G7, G20, international conventions, and bilateral relationships will be used to persuade others to step up their efforts. The EU will also use trade policy to ensure sustainability and it will build partnerships with its neighbours in the Balkans and Africa to help them with their own transitions.
Next steps
The Commission invites the European Parliament and the European Council to endorse the Commission’s ambition for Europe’s future economy and the environment and to help realise it. The Commission will bring forward the measures announced in the European Green Deal roadmap.
Background
Climate change and environmental degradation present an existential threat to Europe and the world. To overcome this challenge, Europe needs a new growth strategy that transforms the Union into a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases by 2050, where economic growth is decoupled from resource use and where no one and no place is left behind.
The European Union already has a strong track record in reducing its emissions of greenhouse gases while maintaining economic growth. Emissions in 2018 were 23% lower than in 1990 while the Union’s GDP grew by 61% in the same period. But more needs to be done. The EU, given its extensive experience, is leading the way in creating a green and inclusive economy.
The Green Deal Communication sets the path for action in the months and years ahead. The Commission’s future work will be guided by the public’s demand for action and by undeniable scientific evidence as demonstrated most comprehensively by IPCC, IPBES, Global Resources Outlook and EEA SOER 2019 reports. Our proposals will be evidence-based and underpinned by broad consultation.
An overwhelming majority of Europeans consider that protecting the environment is important (95%). Almost 8 in 10 Europeans (77%) say that protection of the environment can boost economic growth. The results of the Eurobarometer survey concerning environmental attitudes of EU citizens confirm the wide public support for environmental legislation at EU level and EU funding for environmentally friendly activities.
Compliments of the European Commission

MEPs will debate the “European Green Deal” to make the EU the first climate-neutral continent, on Wednesday 14:00, in an extraordinary plenary sitting in Brussels.

Following the Commission’s expected announcement of the “European Green Deal” on Wednesday 11 December, the European Parliament will have a first debate on it with Commission President Ursula von der Leyen and Executive Vice-President for the European Green Deal, Frans Timmermans who will close the debate.
The European Green Deal will focus on the fight against climate change and other environmental objectives in areas such as transport, energy, pollution, agriculture, circular economy and biodiversity.
The Commission’s communication is expected to include a timeline for the upcoming proposals. Parliament has already stressed that the EU should cut emissions by 55% by 2030 to become climate neutral by 2050 and that an ambitious long-term EU budget for 2021-2027 is needed urgently.
Compliments of the European Parliament

For the first time ever, nearly all European Ambassadors to the United States went on a joint trip outside of the Beltway to showcase EU unity and celebrate the close political, economic, and cultural ties between the European Union and the State of Maryland
Are you sure this is going to work? Can we manage so many events simultaneously? Will we be able to remain on schedule with multiple parallel programs across the State of Maryland?
When the ambassador of the European Union to the United States, Stavros Lambrinidis, came up with the idea of a joint trip of EU ambassadors to Maryland, some of us at the EU Delegation to the US — and probably in some Member States’ embassies too — started scratching our heads. And yet, it worked out remarkably well.
While European embassies and the EU Delegation regularly organize joint missions across the United States, it is the first time that such a trip is organized at the ambassador level in the country. And all are eager to repeat this again in another State.
23 European Ambassadors knock on Governor Hogan’s door
The full-day trip started in the early hours of Tuesday, December 3rd, with 22 European Union Member States’ ambassadors and the EU ambassador departing Washington, DC, for a meeting with Maryland Governor Larry Hogan in Annapolis, MD.
The meeting with Governor Hogan started with a lot of pictures being taken in front of the Maryland State House Christmas tree…including a few ambassadorial selfies.
Governor Hogan and the European ambassadors then talked about the benefits of strong trade and investment ties between Maryland and the European Union, supporting jobs and prosperity on both sides of the Atlantic — including 120,000 jobs in Maryland. Governor Hogan, who also serves as the Chair of the National Governors Association and is part of the U.S. Climate Alliance, also discussed our common policy goals in areas such as climate action with the visiting ambassadors.
23 Ambassadors across the State of Maryland
Following their joint meeting in Annapolis, the European ambassadors split into multiple groups to engage with Marylanders, in all their diversity, with a particular focus on youth — from a public charter school to universities and the U.S. Naval Academy. Ambassadors also talked with business and environmental protection actors.
At the U.S. Naval Academy, several European ambassadors paid tribute to the late Senator John McCain, a lifelong advocate of vibrant transatlantic relations.
Reunited for a flag changing ceremony at Fort McHenry
The ambassadors then reconvened in Baltimore where they visited historic Fort McHenry, which played a role in defending the city in 1812 and inspired America’s national anthem. In the freezing cold, the ambassadors assisted rangers in changing the flag.
A celebration of Maryland in Baltimore
Final stop: the American Visionary Art Museum in Baltimore.
More than 200 Baltimoreans — many of whom from European diasporas — gathered to get to meet the ambassadors, Mayor Bernard ‘Jack’ Young, and senior state officials. Mayor Young handed over a Mayoral Salute to the European Union.
The trip ended with several dance shows, wrapping up a visit that brought Europeans and Marylanders even closer.
And the question now is: where will European Ambassadors go next? Stay tuned…
Compliments of the Delegation of the European Union to the United States

The European Accessibility Act aims to ensure more products and services are accessible for elderly people and people living with a disability. 

On 13 March Parliament approved the European Accessibility Act (EAA). The new rules are a step towards a fairer and more inclusive Europe and will improve the daily lives of the elderly and people with disabilities across the EU.
The final text will still need to be approved by the Council before it can enter into force. Once the legislation has been published in the EU’s official journal, member States will have three years to transpose the new provisions into national law and six years to apply them. 
More accessible products and services
More than 80 million people live with disabilities in the EU and many have difficulties using everyday products, such as smartphones, computers, e-books, and encounter problems in accessing key services via ticket machines or ATMs.
The UN Convention on the Rights of Persons with Disabilities (UNCRPD) requires the EU and member states to ensure accessibility. Measures at EU level are needed to set common accessibility requirements for key products and services.

The European Accessibility Act sets standards for key products and services:

ticketing and check-in machines

ATMs and other payment terminals

PCs and operating systems

smartphones, tablets and TV equipment

access to audio-visual media services, e-books

e-commerce

some elements of passenger transport services

electronic communications, including the 112 emergency number

Opportunities for businesses and consumers
Having common standards at EU level will prevent member states from developing different laws? This will make it easier and more attractive for businesses to sell accessible products and services in the EU and abroad.
The new rules will encourage competition between economic operators and promote the free movement of accessible products and services. It is expected to give consumers more choice of accessible products and service and reduce their cost.
Exemptions for micro-enterprises
Because of their size and limited resources, exemptions would apply to some micro-enterprises, which are small companies with fewer than 10 employees and an annual turnover or balance sheet of less than €2 million.
However, these firms will be encouraged to manufacture and distribute products and provide services that comply with the accessibility requirements of the new rules.
EU countries will have to provide guidelines to these micro-enterprises to facilitate the implementation of the legislation.

Read our overview explaining how the EU improves public health.
Compliments of the European Commission