Insurance-based investment products, between the market and policyholder protection: What responses from European Union Law?

Abstract

The proceedings of a seminar held on June, 20, 2024 delves into the phenomenon of insurance-based investment products (so-called IBIPs). The analysis of the jurisprudence of the Court of Justice of the European Union serves as the starting point for addressing the most relevant issues related to the distribution of IBIPs. The most significant rulings of the Luxembourg Court are thus, firstly, clarifying the application scope of the sector-specific regulations on IBIPs, as well as establishing the differences between the specialized rules provided for the insurance sector and those applicable to other contracts and regulated markets (such as the financial market, broadly speaking). Secondly, an attempt is made to understand how the issues arising from the circulation of these hybrid products can find efficient solutions through the adoption of intersectoral European disciplines, such as those concerning the protection of retail customers – for example, Directive 93/13/EEC on unfair terms in consumer contracts – and the prohibition of unfair commercial practices (Directive 2005/29/EC). In this context, the role played by the Court's precedents can only be appreciated. On the one hand, the interpretative effort of the European judge aims to ensure the so-called effet utile of Union law. On the other hand, the harmonizing scope of the decisions constitutes a necessary reference to reinforce the project of the Capital Market Union, in this case, applied to the insurance sector.