EIOPA has published a Consultation Paper on its revised proposals for preparatory Guidelines on product oversight and governance arrangements by insurers and distributors. The Guidelines are designed to protect policyholders and beneficiaries by requiring that insurance products are designed and distributed in such a way as to meet consumers’ needs.
EIOPA’s original draft Guidelines, subject to public consultation from October 2014 to January 2015, applied only to product manufacturers. Chapter 1 of the Consultation Paper sets out an amended text of the Guidelines for product manufacturers, incorporating feedback from that first consultation. Chapter 2 sets out the new Guidelines applicable to insurance distributors which cover an intermediary’s distribution strategy, the need to review distribution arrangements as well as the role of management in such a review.
More generally, the Consultation Paper contains details of a cost / benefit analysis carried out by EIOPA in relation to the impact of the proposed Guidelines. Explanatory notes for the full suite of Guidelines are also provided, together with a list of questions for stakeholders to answer in relation to the Chapter 2 Guidelines.
The consultation period will close on 29 January 2016 and EIOPA anticipates publishing a final report in the second quarter of 2016. EIOPA has also indicated that, following approval from its Board of Supervisors, final guidelines will only be published once the Insurance Distribution Directive/IMD2 has been officially adopted and published in the Official Journal of the EU.
A link to the Consultation Paper is here.