Selected recent European Insurance news items of more general interest:
On 10 February, the ESAs published a "Joint Consultation Paper on PRIIPs with environmental or social objectives." The draft technical advice refers to procedures to be used to establish whether a PRIIP targets specific environmental or social objectives (an "EOS PRIIP").
On 7 February, EIOPA published "Draft Implementing Technical Standards concerning a standardised presentation format for the Insurance Product Information Document [IPID] of the Insurance Distribution Directive [IDD]." The IPID is a pre-contractual document to be drawn up by the manufacturer of a non-life insurance product and provided to customers.
On 2 February, EIOPA published "Consultation Paper on the proposal for Guidelines under the Insurance Distribution Directive [IDD] on insurance based investment products [IBIPs] that incorporate a structure which makes it difficult for the customer to understand the risks involved." The IDD requires an assessment of the suitability or appropriateness of an IBIP to be carried out by the insurance intermediary or undertaking as part of the sales process. However, where various conditions are satisfied, including that the IBIP is not complex, the IBIP may be sold on an execution-only basis. EIOPA has developed Guidelines concerning these conditions. The consultation on the Guidelines closes on 28 April 2017 and the IDD has to be implemented by Member States by 23 February 2018. EIOPA's definition for background information: Insurance-based investment products (IBIPs) are insurance products which offer a maturity or surrender value band where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations. As an example, the following products in the retail market will be IBIPs: unit-linked life insurance policies or life insurance policies with profit sharing or profit participation.
Also on 2 February, EIOPA published the translations of the Guidelines on Facilitating an Effective Dialogue between Insurance Supervisors and Statutory Auditors into all official languages of the EU. NCAs now need to confirm whether they comply or intend to comply with the Guidelines. The Final Report on the proposals was published on 12 December 2016 and covered in OAC's Digest of 19 December.
On 1 February, EIOPA published its Technical Advice to the EC on possible Delegated Acts concerning the IDD. The recommendations covered Product Oversight and Governance (POG), Conflicts of Interest, Inducements and Suitability or appropriateness of IBIPs.
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