AILO voices PEPP concerns
The Association of International Life Offices has written to a key EIOPA official in Brussels to express its strongly-held view that draft regulation aimed at bringing into law a so-called Pan European Personal Pension (PEPP) product would not work, nor could any such one-size-fits-all pension “unless some radical rethinking is carried out”.
Its letter, delivered via email on Monday, was addressed to Sophia in’t Veld, a member of the European Parliament, and rapporteur for the PEPPs dossier, in view, it begins by saying, her “remark at the EIOPA conference that as you are in listening mode”, and given her “clear understanding of the key issues”.
In essence, AILO, which is also based in Brussels and represents life insurance companies transacting cross-border and international business around the world – including within the European Economic Area – argues that it should by virtue of its members’ self interests welcome an initiative that would enable them to sell their products easily across national borders.
However, it notes, past experience over the years has shown that “it is not practical or profitable to continue to offer products in some [EU] member states, so that the unintended consequence has been a contraction rather than expansion of cross-border business”.