While financial education standards remain low, generic financial advice and simpler products could benefit consumers, according to Kay Blair, vice chair of the Financial Services Consumer Panel (FSCP).
Blair says: “More choice and rampant innovation are not always good for consumers.
“A set of reliable and trusted products, for instance around saving, protection and retirement, could make a real difference.”
Blair called for a greater emphasis on financial education at the EIOPA Insurance and Reinsurance Stakeholder Group’s consumer day conference.
She says: “A focus on targeted financial education and, over the longer term, improved financial capability would help give consumers the tools they need to make more informed choices about their financial wellbeing.
“But this is a long haul as currently financial literacy skills are not high and consumers do not always make rational decisions.”
The FSCP vice chair also called for coordinated action from authorities to enhance consumer protection.
She says: “Regulators collectively need to identify and understand where, why and how consumer detriment arises.”
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