Product oversight and governance

The requirements place the onus on brokers’ and insurers’ internal operations and controls to ensure that the industry as a whole works towards providing customers with products and services that deliver fair value.

In order to ensure compliance with the regulation and the best outcomes for our customers, we’ve reviewed our internal procedures for product development, approval and assessment of value. We’re committed to working together with you in fulfilling these requirements, and the following information will provide useful detail on the steps we’re taking and how we can support you. 

We’ve been manufacturing insurance products for over 130 years, and already have well-established product oversight and governance controls in place. These provide assurance that all the activities undertaken throughout the lifecycle of a product are managed to appropriate standards. 

Our product oversight and governance processes have been updated. Embracing the value -focussed regulatory developments, our product value assessment activity now requires completion every 12 months as opposed to the previous review timeframes. 

We have, and continue to, undertake the product assessment and monitoring activity in accordance with the FCA’s requirements. Our product oversight and governance processes have been amended to ensure we’re aligned to the updated PROD (Product Intervention and Product Governance) Sourcebook requirements, which came into effect on 1 October 2021. 

We’re currently initiating the additional product approval assessment activity on existing products in order to have these completed in good time prior to the FCA’s 30  September 2022 deadline.

We will require information about the distribution activities undertaken for all our existing products, including details on any additional services or products provided as well as remuneration and service levels of all parties involved in the product distribution. 

We’re already working with a number of brokers to establish a mutually beneficial and consistent approach to obtaining this information, while keeping abreast of any development that BIBA (the British Insurance Brokers’ Association) and the ABI (Association of British Insurers) have been progressing in this area. 

Once we’ve identified the best approach, we’ll be reaching out to some of you for distribution chain information for our open market products. In the future, we may also request distribution chain information from all brokers with schemes or facilities with us, which fall outside of our open market product range. 

We understand you may have additional questions as you also respond to the new regulatory requirements. Please check this page regularly as we’ll continue to provide the latest information to assist you further. In the meantime, please direct any further queries to your usual Allianz contact. Thank you for your assistance.