The Board of Supervisors of the European Insurance and Occupational Pensions Authority (EIOPA) has agreed to launch a second joint mystery shopping exercise in Europe’s insurance sector.

While the first ever EU-coordinated exercise focused on the sales of insurance-based investment products, this second campaign will examine the online sales of non-life insurance products.

The first mystery shopping exercise revealed uneven practices across distribution channels and markets regarding information gathering and disclosure for investment products. On the positive side, most distributors (74%) collected information about customers’ ability to hold investments over the recommended period, including aspects such as investment horizon, employment status and overall financial situation. However, the assessment found weaker performance when it came to evaluating clients’ risk tolerance and sustainability preferences.

In terms of disclosure, more than two thirds of distributors provided information on product risks, expected returns and recommended holding periods. However, fewer than half offered complete information on product costs. The exercise also showed that Key Information Documents (KIDs), when made available, helped consumers better understand product features and characteristics.

The forthcoming exercise will be coordinated by EIOPA and take place across 10 Member States, following a common methodology developed by EIOPA and its Members. The results of the second coordinated exercise are expected to be published in the first half of 2027.

Notes

Mystery shopping is an exercise in which trained individuals act as prospective consumers to evaluate consumers' real experience. It can involve both in-person visits to distributors and online interactions via digital channels. 

Mystery shoppers' visits allow supervisors to gather useful insights into the sales journey of insurance products by exploring the potential risks and opportunities associated with consumers' purchasing journey. The findings provide valuable input and a structured view on consumer outcomes.

[daniela.ghetu]