UK/EUROPE- The proposed European Consumer Rights Directive must not be allowed to hamper auto-enrolment into occupational pensions, the Association of British Insurers warns.
ABI director of consumer affairs Maggie Craig raised her concerns to the House of Lords European Committee.
She said: "The UK already has very high standards of consumer protection, especially in financial services. For this reason, financial services are mainly exempt from the Directive's provisions, and we hope that this will continue.
"However, we have particular concerns that the Directive could be amended during negotiations to prohibit the use of automatic enrolment into workplace pensions schemes, a key feature of the government's pension reform programme due to come into force in 2012."
She said the ABI successfully persuaded the European Commission to agree that "inertia selling" bans in previous directives would not apply to pensions automatic enrolment.
"Amendments to the Consumer Rights Directive must not be allowed to call this into question.
"The same concern applies to automatic renewal of insurance policies, a process which works well for consumers but which could be outlawed by this Directive. We are seeking guarantees that the Directive will not affect this long-established and understood practice."
A handful of industry heavyweights have begun trialling a so-called 'mid-life MOT', with positive initial results reported by all those involved.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.