MFSA issued a circular on The European Insurance and Occupational Pensions Authority’s (EIOPA)
The MFSA issues a circular on EIOPAs Request for Public Input on its proposed Methodology for Setting Value for Money Benchmarks for Unit-Linked and Hybrid Insurance Products
On the 19th February, the MFSA issued a circular on The European Insurance and Occupational Pensions Authority’s (EIOPA) public consultation over its proposed method for setting value for money (VfM) standards for unit-linked and hybrid insurance products, which will provide insight for insurance manufacturers and distributors regarding its control measures to mitigate VfM risks. This is to ensure customer-oriented services that factor in VfM considerations.
A gradual approach will be used to accurately represent the varying product differences sold throughout the European Union. The planned steps include defining the product clusters, determining the indicators to develop benchmarks, and collecting data and calibrating the benchmarks.
This proposal is independent of the Retail Investment Strategy yet is rooted in and built upon current Insurance Distribution Directive (IDD) requirements. EIOPA welcomes feedback on its consultation paper on VfM standard methodology, especially those which provide clear reasoning and potential alternatives. All feedback should be submitted by March 15, 2024, and only responses submitted via the EU Survey and before the deadline will be accepted. Contributions can also be shared with the MFSA to [email protected].
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Karl Mercieca
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Maria Calleja
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Leanne Haber
Regulatory Compliance Senior Consultant
Kira Farrugia
Regulatory Compliance Consultant