EIOPA published its approach to the supervision of product oversight and governance requirements in the insurance sector in EU. EIOPA takes a consumer-centric approach to supervision based on the requirements of the Insurance Distribution Directive (IDD). This approach is expected to support insurance manufacturers and distributors when implementing their own product oversight and governance policies as well as to facilitate engagement with national supervisors.
In the published guidance document, EIOPA explains the approach and aim to supervision of product oversight and governance in the insurance sector. EIOPA emphasizes that insurance manufacturers and distributors should take into account their business model, product complexity, and characteristics of the target market in their policies and processes. It also sets out the approach by explaining that supervisors will focus on how insurers and distributors ensure customer-centric business product design, approval, and distribution process with adequate systems and controls in place by:
- Establishing whether target markets for each product are adequately defined
- Assessing whether product testing sufficiently assesses the fairness and the value of each product
- Determining whether distribution strategies are adequate
- Assessing whether manufacturers adequately monitor and regularly review products, either for ad hoc reviews or at appropriate intervals
The published document is for information purposes only and is neither binding on national competent authorities, nor on insurance distributors and insurance manufacturers. It does not amend or form any part of the IDD or the Commission Delegated Regulation (EU) 2017/2358 (POG-DR). As explained, supervision of product oversight and governance is based on Article 25 of IDD. The requirements outlined in Article 25 are further specified in the POG-DR. Articles 2 and 3 of the POG-DR specify that product oversight and governance requirements are applicable to insurance undertakings (subject to Solvency II and to IDD) and to insurance intermediaries (subject to IDD) which manufacture insurance products that are offered for sale to customers and which advise on or propose insurance products that they do not manufacture.
Keywords: Europe, EU, Insurance, Product Oversight and Governance, Insurance Distribution Directive, Proportionality, IDD, Solvency II, EIOPA
Previous ArticleSNB Updates Reporting Forms for Liquidity Monitoring Tools
Next ArticleFED Proposes to Revise and Extend FR Y-9 Reports
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.