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While the Insurance Distribution Directive (IDD) has been in force
in each EU member state since 2018 at the latest, its
implementation has only become the focus of supervisory authorities
in the last two years. Of particular importance are the
requirements for the product approval process according to Article
25 IDD in connection with the Delegated Regulation on product
oversight and governance requirements (POG). Specifically, this
relates to requirements for the development and distribution of new
products and significant adaptations of existing insurance
products. The requirements serve to effectively protect consumers
and are part of the business organization of insurance
undertakings. Depending on the nature of the insurance product and
the risk of consumer detriment related to it, the product approval
process essentially includes
- defining a target market for the insurance product, determining
and assessing the relevant risks for this target market,
- testing the insurance product, including scenario analyses, to
ensure that the product meets over its whole lifetime the
identified needs, objectives and characteristics of the defined
target market,
- determining a distribution strategy corresponding to the target
market and the information to be provided to distributors,
- ensuring that the insurance product is distributed to the
defined target market, and
- monitoring and regularly reviewing the insurance product.
The product approval process under IDD therefore goes well beyond
the process how an insurance product was designed and developed by
insurance undertakings before the application of the IDD.
The aim of this web session is to provide the audience with an
overview of the key requirements of IDD first, and then to explain
in more detail the regulatory requirements for the product
oversight and governance rules and their integration into the
business organization of insurance undertakings. The focus is on
the extended requirements compared to the product approval process
before IDD and their impact on the activity profile of actuaries
involved. In addition, interfaces with the EU regulation on
environmental, social and governance (ESG) and the EIOPA
methodology for assessing value for money are pointed out at the
relevant stages in the process.
Early-bird discount is available for bookings made by 21
April 2025. |
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