ACA Insurance Day 2024 : Consumer protection: The pursuit of common goals between the regulator and the market

The 12th edition of the ACA Insurance Day featured the panel “Consumer protection: The pursuit of common goals between the regulator and the market” which brought together around 100 participants to discuss a central topic in insurance. Moderated by Pierre-Michaël de Waersegger (Partner – Arendt & Medernach), the panel included prominent experts: Octavie Dexant (Managing Director and Board Member of AXA Luxembourg and AXA Wealth Europe, as well as Vice-President of the ACA), Nicolas Limbourg (CEO of Vitis Life, Deputy CEO of the Monceau Assurances Group, and Vice-President of the ACA), Xavier Bové (ACA Representative in Brussels), and Yves Baustert (Member of the Executive Committee of the Commissariat aux Assurances).

An Expanded Vision of Consumer Protection

Initially focused on prohibiting unfair practices, consumer protection now revolves around a core element: better consumer information. Enhanced information allows consumers to compare products effectively. However, it is crucial to avoid the pitfall of standardizing certain products. Continuous dialogue with all stakeholders remains essential to account for the specificities of the Luxembourg market and to avoid the adoption of rules that may be poorly adapted.

Insurers’ Perspectives: “No Gap, No Overlap”

Octavie Dexant emphasized the fundamental essence of the insurance profession: protection. The ACA Vice-President advocated for a balance between comprehensive protection and avoiding over-coverage. “Protecting consumers means diagnosing their specific needs, avoiding coverage gaps, and eliminating unnecessary excess,” she stated. She also highlighted risk prevention as a key tool for supporting clients.

Nicolas Limbourg underscored that protecting clients strengthens long-term trust while noting that this approach also shields insurers from regulatory and reputational risks.

The Regulator’s Role: Trust and Collaboration

Yves Baustert advocated for a selfless approach to regulation, focusing on maintaining high trust levels in the Luxembourg sector. However, he acknowledged the challenges posed by European directives that are sometimes ill-suited to Luxembourg’s specific products. Baustert called for close collaboration among stakeholders (legislators, regulators, insurers, distributors, etc.) to find pragmatic solutions.

The European Dimension: Plurality and Competitiveness

Xavier Bové provided a perspective on European dynamics, highlighting the plurality of voices among legislators, Member States, and institutions. He stressed the importance of preserving competitiveness and innovation while ensuring that consumer protection does not become a pretext for protectionist restrictions, as is occasionally observed in certain national legislations.

Toward Simplification and Regulatory Assessment

The panelists unanimously criticized the “regulatory layering,” which complicates compliance without always delivering tangible benefits to consumers. They advocated for simplifying and continuously adapting regulations to better reflect the needs of clients and markets.

In Conclusion: A Quest for Aligned Goals

The panel demonstrated that the objectives of the various stakeholders—insurers, regulators, and legislators—largely align: effectively protecting consumers while ensuring the sector’s competitiveness. Achieving this ambition requires close collaboration among stakeholders and consideration of each market’s specificities.