14 Feb 2022

A customer centric-approach to the design of unit-linked products

How to deliver value for money?

EIOPA believes that reliably putting consumer outcomes at the heart of product design, distribution and monitoring processes is critical for tackling value for money issues.

While unit-linked products can and often do offer important benefits for policyholders, EIOPA repeatedly highlighted concerns that costs for some unit-linked products continue to remain too high. Also, due to the complexity of some products, features often offer limited value for money to consumers.

On 30 November 2021, EIOPA issued a supervisory statement to outline how supervisory authorities will monitor manufacturers’ and distributors’ product oversight and governance processes. The supervisory statement is based on the framework issued for public consultation over the period 13 April 2021 – 16 July 2021 and takes into account stakeholders' comments.

In its statement, EIOPA highlighted that while value for money is embedded already within product oversight and governance requirements, more convergence is needed. The statement clarifies how value for money should be taken into account when:

  • Manufacturers define the pricing of unit-linked products;
  • Manufacturers assess the complexity of their unit-linked products;
  • Manufacturers test their unit-linked products before bringing them onto the market;
  • Manufacturers review their products;
  • National competent authorities supervise whether manufacturers have developed an adequate and proportionate product oversight and governance process.

The event offers participants the opportunity to exchange views with EIOPA and other stakeholders from across Europe.

This event, taking place on 14 February from 9:00 to 10:15 CET, aims to provide more clarity on the statement and EIOPA’s expectations by answering any question from stakeholders and by seeking concrete views on the practicality of implementing the principles outlined.

Interested participants are invited to send questions ahead of the event to the following email valueformoney@eiopa.europa.eu.

Registrations are closed

If you need further assistance, please contact training&events@eiopa.europa.eu.

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