EIOPA peer review follow-up shows progress in product oversight and governance supervision

The European Insurance and Occupational Pensions Authority (EIOPA) published today its follow-up report to the Peer Review on Product Oversight and Governance (POG), assessing the progress made by National Competent Authorities (NCAs) in implementing recommended actions to strengthen the supervision of POG requirements.

POG requirements are a key part of the conduct framework for insurance products. They aim to ensure that products are designed, distributed, monitored and reviewed in a customer-centric way and remain aligned with the needs, objectives and characteristics of the target market throughout the products’ lifecycle. Effective POG supervision helps protect consumers, supports sound market functioning and contributes to building confidence in insurance and long-term savings products.

The follow-up report shows overall progress in the supervision of POG requirements. Since the peer review, NCAs have strengthened their supervisory frameworks and advanced the maturity of POG supervision. Progress is particularly visible where authorities have moved from general or formal approaches towards more operational, risk-based and product-focused supervision. Notable progress has also been achieved in the communication of supervisory expectations to the market and in clarifying how POG requirements should be applied in practice to support more consistent supervisory outcomes. At the same time, the report also finds that progress remains uneven across Member States, particularly in areas requiring changes to internal methodologies, organisational arrangements and resources.

The report notes that many NCAs have implemented more developed conduct risk assessment frameworks that combine product-specific and undertaking-specific analysis with practical tools to support supervisory prioritisation. This allows them to better identify products, undertakings and practices that may give rise to consumer detriment. Supervisory work has become more systematic and outcome-oriented as well, with NCAs making greater use of off-site analysis, thematic reviews, product-focused assessments and on-site inspections. In several cases, this work has led to concrete remedial actions, including product changes, cost reductions or product withdrawals.

Go to the Follow-up Report

Next steps

EIOPA will continue to monitor the implementation of open recommended actions. Competent authorities concerned will be asked, where relevant, to inform EIOPA within six months from the approval of the follow-up report about further progress achieved. 

Background

EIOPA published its Peer Review on Product Oversight and Governance in 2023. The peer review assessed the maturity of supervisory frameworks developed by NCAs for the supervision of POG requirements as applied by insurance manufacturers, with a particular focus on insurance-based investment products.

Under EIOPA’s peer review framework, follow-up reports assess the adequacy and effectiveness of actions taken by National Competent Authorities in response to recommended actions. They are an important tool to promote supervisory convergence and consistent consumer-protection outcomes across the European Economic Area.