In the latest edition of its consumer information series “Let’s talk about money”, the Austrian Financial Market Authority (FMA) informs consumers about how they can compare different insurance-based investment products with one another using the key information document.
Insurance-based investment products are life insurance policies that not only provide coverage in the event of death, but which all also carry the opportunities and threats associated with an investment, both in the case that the investor dies or survives. Generally they are a mixed product made up of the hedging of risks and investment of money. In addition to classical life insurance, other examples include fund-based or index-linked life insurance.
Insurance undertaking must make a standardised key information document (a KID) available for each of these insurance-based investment products. It contains the most important information about the product, especially regarding transparency of charges, a depiction of performance, a risk indicator and information about the protection scheme.
In 2021, the FMA has checked all insurance-based investment products on sale to see whether the key information documents that are required to be published on Austrian insurance undertakings’ websites duly present the charges and performance as well as information about risk indicators transparently and in accordance with legal regulations. In addition, a random sample has been checked regarding whether the legally prescribed methodologies were applied for the calculation of information. It has emerged that approx. 330 key information documents that have been reviewed all adhere to the legal regulations. This review was conducted as part of the priority for supervision and inspections on “collective consumer protection”.
Further information may be found on the “Let’s talk about money” website.
Journalists may address further enquiries to:
Annemarie Bauer
+43/(0)1/24959-6007