Mystery Shopping by BaFin: Would Your Digital Sales Journey Pass the Test?

BaFin has been criticising the quality of advice provided in the sale of unitlinked life insurance products for some time. The issue recently gained renewed attention through a crossborder mystery shopping exercise accompanied by EIOPA, whose final results were published in June 2025. The findings have prompted many insurers to take a critical look at their digital advisory and sales processes. 

Mystery Shopping Reveals Significant Deficiencies 

Although BaFin points out that only six insurers were examined, the results still paint a clear picture: In many cases, the wishes and needs of the test persons were only insufficiently assessed, which was also reflected in the documentation. Advisory protocols were frequently incomplete, confusing, or even incorrect. Risk appetite, for example, was sometimes documented in a way that did not match the customer’s actual statements. Product suitability regarding expected returns and risk categories was clearly presented in only about half of the cases. In addition, the documentation itself was often excessive and difficult to navigate, in some cases comprising up to 400 pages. 

The affected companies have been contacted by BaFin with the aim to jointly identify and address systematic weaknesses. 

Why Insurers Should Optimise Now Instead of Losing Customers 

In light of BaFin’s findings, life insurers must reconsider how to make their offering and advisory processes more attractive and customerfriendly. This spans the entire journey from creating risk profiles, to deriving suitable investment recommendations, to enabling simple fund switches.  

Customers increasingly expect intuitive digital journeys. If insurers fail to deliver, many will turn to alternative providers offering smoother, more modern solutions. Particularly regarding the presentation of the current fund portfolio, possible fund combinations, and switching options, many insurers’ digital offerings still show weaknesses. Yet this can be solved relatively easily. A key step is the integration of Shift & Switch options into the digital advisory and sales journey. 

Shift & Switch: Enabling Simple, Transparent Fund Changes  

Combining a transparent investment overview with digital tools for searching, selecting, and composing suitable funds enables a contemporary customer journey for Shift & Switch processes. 

Using up-to-date information on conditions and fund performance, unit-linked insurance products can be tailored to individual risk profiles and performance expectations. 

Creating a Fully Digital Advisory & Sales Journey 

Once the current policy has been analysed and suitable alternatives have been selected using easy digital tools, fund switches (Shift) or strategic reallocations (Switch) can be executed quickly and efficiently. This mirrors the level of convenience already common in investment products without an insurance wrapper. 

An ideal digital advisory journey inside a central portal could follow these steps: 

1. Risk profiling & IDD Check
   A digital onboarding process to assess personal risk affinity, supported by an integrated tax calculator and IDD compliance verification. 

1. Fund Selection With Fund Finder, Fund Comparison and Fund Portraits 
   Guided fund selection based on the risk profile and the recommendations of the fund finder.
2. Transparent Portfolio Overview
   Daily updated information on fund development, including all relevant performance indicators.
3. Shift & Switch Optimisation 
   Guided optimisation of fund allocations during Shift & Switch, based on the fund finder’s suggestions.
4. Contract Conclusion
   Digital contract finalisation with e‑signature and all required documents, such as factsheets, PRIIP KIDs and ESG reports, including all necessary KYC, due‑diligence and AML processes. 

These steps are typically carried out with an advisor. To maximise customer benefit, advisors should proactively inform clients about flexible switching options into potentially more attractive products. However, self-service options can also be provided in a fully digital and compliant way – an increasingly relevant option, especially for online insurers. 

The Digital AllinOne Solution from cleversoft 

With cleversoft’s integrated solution for digital Shift & Switch processes, advisors can easily optimise existing customer portfolios and design suitable products for new customers, for example in line with principles of modern portfolio theory. This enables flexible alignment of unitlinked life insurance products with individual risk profiles and return goals, making them more attractive overall. All documents required for compliant advice and complete documentation are, of course, included. 

At the FONDSprofessionall KONGRESS 2026 in Mannheim, Lisa Waldherr will present on intelligent solutions for Portfolio Optimization in Unit-Linked Policies on January 28 in Hall 10. Don’t miss the opportunity to gain first-hand insights into how to improve your processes! 

Do you have questions about Shift & Switch or digital advisory journeys for the distribution of life insurance? We will be happy to advise you personally. Simply contact us via direct message to Lisa Waldherr or our contact form.