Clearer, and more consumer-friendly information is needed to prevent the ‘illusion of being insured’ for natural catastrophe coverage, EIOPA study finds

NATURAL CATASTROPHES, IS YOUR HOME COVERED? Findings from a sample-based analysis on the clarity of NatCat coverage in Household Insurance Product Information Documents EIOPA(2025)0132906 Consumer Protection Department EIOPA REGULAR USE EIOPA-BoS-25/192 22 April 2025 TABLE OF CONTENTS Executive Summary 3 1. Introduction 4 2. Findings 5 2.1 The degree and quality of information in relation to NatCat coverage varies across IPIDs 6 2.2 Coverage limitations, when not clearly dislosed, can affect consumers’ understanding 8 2.3 The definition of target markets may differ in levels of granularity 9 2.4 Product monitoring and review following NatCat events enables the identification of adequate coverage 10 2.5 Proactive initatives are being developed to promote consumer awareness 11 3. Illustrative examples to enhance consumer experience 12 4. Conclusions 14 Annex 1: Additional findings stemming from survey data analysis 15 Annex 2: Methodology and limitations of the report 17 EXECUTIVE SUMMARY With the increase in frequency and severity of Natural Catastrophes (NatCat,), more and more households across the European Union are vulnerable to shocks, even when insurance coverage is available to them. Work carried out by the European Insurance and Occupational Pensions Authority (EIOPA) shows that even when insurance coverage is available, many consumers opt not to buy NatCat coverage. EIOPA’s consumer research identifies a...