The European Insurance and Occupational Pensions Authority (EIOPA) has recently published a report summarising the findings of an Expert Group set up in May 2011 with the aim of establishing good disclosure and selling practices for variable annuities.
The main findings of the Report are that good practices:
In relation to disclosures:
- should provide general information on the insurance undertaking and the legal and supervisory regime it operates under to take account of the cross-border nature of this business; and
- should also include product specific information to address product complexity.
In relation to selling practices:
- should ensure that variable annuities are always sold on an advised basis, even when they are sold directly by the company; and
- should focus on the customer’s objectives to determine his demands and needs.
Please click here to read the full text of the Report.