AFM scores well on supervision of product oversight and governance

AFM scores well in EIOPA’s first ever peer review of NCAs’ supervision of conduct of business

Given the increase in cross-border marketing of insurance products, EIOPA considers it crucial that the supervision by NCAs on product development is consistent across the European Economic Area (EEA). In its peer review, EIOPA also assessed how NCAs have included and implemented ongoing supervisory processes in their POG supervision. It is important that customers are only offered and advised on financial products that are in their interest.

EIOPA has issued recommendations to all European NCAs

Based on its peer review of the 30 NCAs in the EEA, EIOPA has issued a total of 110 recommendations to the NCAs on how to improve their POG supervision. These include recommendations relating to the organisation of their POG supervision and their supervisory methodologies. The AFM has received only one recommendation. EIOPA has advised us to apply a framework (dashboard) that also covers the supervision of life insurance products to enable systematic and effective risk-based supervision of insurers’ conduct of business. We will of course take steps to implement this recommendation.

Consistent European supervision of product development is crucial

Given the increase in cross-border marketing and offering of financial products, it is crucial that the NCAs’ supervision of insurance products is consistent across the EEA. The Netherlands already had in place rules on product development before the European rules were introduced. The AFM will now take steps to improve the sharing of best practices to enhance the European supervision of conduct of business.

EIOPA will publish a follow-up to its peer review in six months time that will assess the NCAs’ implementation of its recommendations.

More information

You can read the full peer review here.