Regulatory Alerts2016-06-01
Preparatory Guidelines on Product Oversight and Governance Systems by Insurance Undertakings and Insurance Distributors
EIOPA has issued preparatory guidelines to insurance undertakings and distributors requiring the establishment of robust product oversight and governance systems that ensure insurance products are designed, distributed, and monitored in line with the identified target market. The guidelines mandate that manufacturers and distributors implement proportionate, risk-based procedures for product approval, continuous monitoring, corrective actions, and clear distribution strategies to prevent consumer harm and manage conflicts of interest. Competent authorities are instructed to apply these guidelines consistently during the transitional period leading to the full implementation of the Insurance Distribution Directive, ensuring a level playing field across financial markets.