Featured Product

    EIOPA on Product Oversight and Governance Measures Amid COVID Crisis

    July 08, 2020

    EIOPA issued a statement that clarifies supervisory expectations on product oversight and governance requirements amid the COVID-19 situation. To ensure the continuing fair treatment of customers in light of COVID-19 crisis, insurance manufacturers are being asked to identify the products affected as a result of COVID-19 crisis, assess possible unfair treatment of customers for these products, and consider proportionate remedial measures. This statement builds on the statement issued, on April 01, 2020, to insurers and intermediaries to take steps to mitigate the impact of COVID-19 crisis on consumers.

    EIOPA expects insurance manufacturers to identify insurance products whose main features, risk coverage, or guarantees have been materially impacted by the COVID-19 situation. Where products have been materially affected, insurance manufacturers should assess whether and how they continue to offer value to the target market, taking into account the needs, characteristics, and objectives. The assessment should be on a medium to longer term basis, to take into account product lifecycles and the evolution of the impact of the COVID-19 pandemic. When manufacturers identify products that are no longer sufficiently aligned with the target market, they should assess whether this can result in possible unfair treatment. This should be an assessment for the target market in general, rather than for individual customers.

    EIOPA expects measures to be taken where possible unfair treatment emerges, also taking into account the relevant legal requirements in national civil and insurance law. These measures should be proportional to the potential unfair treatment and reflect possible extended changes in product utility. In line with product oversight and governance requirements, remedial measures should aim to mitigate the situation and prevent further occurrences of the detriment. Insurance manufacturers should consider a broad range of possible measures and their impact on products over the medium to long term. EIOPA and national supervisory authorities will continue working collectively to ensure financial stability, market integrity, and consumer protection, including by continuing monitoring the market practices in light of the COVID-19 situation.

     

    Related Links

    Keywords: Europe, EU, Insurance, COVID-19, Governance, Product Oversight and Governance, Proportionality, EIOPA

    Featured Experts
    Related Articles
    News

    BoE Seeks Information Before Migrating Statistical Reporting to BEEDS

    The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.

    October 25, 2021 WebPage Regulatory News
    News

    FCA Publishes Final Rules on Investment Firms Prudential Regime

    The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).

    October 25, 2021 WebPage Regulatory News
    News

    CFRF Publishes Guides to Manage Financial Risks from Climate Change

    The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.

    October 21, 2021 WebPage Regulatory News
    News

    PRA Finalizes Policy for Non-Performing Exposure Securitizations

    The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.

    October 21, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EU to Explore Potential of Establishing a Joint Cyber Unit

    The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.

    October 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Work Program for 2022

    The European Commission (EC) adopted the work program for 2022.

    October 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7598