The Bank of Latvia informed the media that it has developed proposals for improving insurance services and presented them to the responsible ministries - the Ministry of Economics and the Ministry of Finance.
Currently, the state has laid down detailed requirements for the provision of insurance services and the conclusion of an insurance contract. Insurers are required to provide easily readable, understandable, and comparable insurance product information, including a standardized property insurance product information document. Customers, in turn, are obliged to consult this information in order to understand the terms of the contract.
In order to simplify and make the terms of the insurance contract clearer and easier to understand for customers, the Bank of Latvia proposes to require that the terms of the insurance contract be drafted in plain language based on the International Organisation for Standardisation (ISO) standard on the use of plain language.
The Bank of Latvia's proposal foresees also a requirement to include personalized information on the insured risks in the insurance policy, including their definitions and exclusions.