Product Governance for Insurers in the EU
Introduction
Defining what we’re talking about – product governance, manufacturers, distributors
Key Materials IDD, EIOPA Guidelines & what rules/guidance apply to what?
Governance & Systems
The product governance arrangements – participants & structures
Independent challenge & membership of the arrangement/committee
Product oversight and governance policy
Proportionality requirement
Ongoing issues – conflicts of interest, joint-manufacturing
Different types of product reviews and ongoing monitoring
Product risk management
Oversight by senior management and compliance
Review of the process
The Tasks
Identifying Target Market
Positive and negative
Its needs, characteristics and objectives
Effect of value for money
Product design
Core design
Developing the spec and working with outsourcers
Risk premium
Value measures – over the relevant period
Defining value
Effect of distribution chains on value
Avoiding pricing punishing loyalty & vulnerability
Cost of premium finance
Assessing value and management information
Effect of add-ons and packages
Regulator & compensation scheme
Product Testing
Testing what
Procedures for testing
Value measures
Distribution
Distribution strategy
Managing distribution chains
Monitoring distributors
Material for distributors
Tests depending on intended recipients
Disclosure of product review materials
Distributors’ duties
Identification of target market – use of manufacturers’ target
Obtaining information about the product
Duty to co-operate
Assessment of value
Post-launch monitoring & ongoing review
Key management information
Checking that product still offers fair value
Check that product delivers what customer reasonably expects
Handling product failures
Dealing with regulators