Featured Product

    EIOPA on Supervisory Approach to Product Oversight and Governance

    October 08, 2020

    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.

     

    Related Links

    Keywords: Europe, EU, Insurance, Product Oversight and Governance, Insurance Distribution Directive, Proportionality, IDD, Solvency II, EIOPA

    Featured Experts
    Related Articles
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6826