Despite good returns, performance of retail investment products in insurance and pensions fails to outperform inflation

COSTS AND PAST PERFORMANCE REPORT April 2025 Consumer Protection Department EIOPA REGULAR USE EIOPA-BoS-25/123 15 April 2025 CONTENTS EXECUTIVE SUMMARY 3 1. INSURANCE-BASED INVESTMENT PRODUCTS (IBIPS) 5 1.1. What is the IBIPs landscape? 5 1.2. How did products perform in 2023? 7 1.3. How did products perform over the past years? 9 1.4. How do products differ in costs? 12 2. PERSONAL PENSION PRODUCTS (PPP) 16 2.1. How did PPP perform in the EEA? 16 2.2. What were the performance and costs in different Member States? 17 3. INSTITUTIONS FOR OCCUPATIONAL RETIREMENT PROVISIONs (IORPs) 19 3.1. What is the landscape in the EEA? 19 3.2. What is the trend in members and investments? 20 3.3. What were the contributions, expenses and incomes in DC schemes? 22 ANNEX I – MARKET COVERAGE 23 ANNEX II – METHODOLOGY 25 ANNEX III – STATISTICAL ANNEX (IBIPs) 28 ANNEX IV – GLOSSARY 33 EXECUTIVE SUMMARY EIOPA is required to monitor and report on the development of costs and charges of retail financial products and services in Member States1. This Report provides an overview of the (past) performance and costs of retail investment products within EIOPA’s remit for the period 31 December 2019 to 31 December 2023.2 In 2023, insurance-based investment products (IBIPs) delivered positive net returns, driven by the recovery of financial markets. Overall, and aided by the recovery in 2023, IBIPs achieved positive net returns over the...