Product Oversight and Governance – Home Insurance

Regulators expect firms to be effective, efficient, and proactive to ensure consumer detriment issues are identified and addressed in a timely manner. Products are expected to be consumer-centric – aligned to the needs of their consumers to produce good outcomes.

The Insurance Distribution Directive’s (“IDD”) Product Oversight and Governance (“POG”) requirements require firms to consider the best interest of customers during product design and throughout the lifecycle of a product, including distribution. Regulators expect firms to be effective, efficient, and actively monitor POG metrics to ensure customer impacting issues are identified and addressed in a timely manner.

Products are expected to be suitable for the target market and consumer-centric – aligned to the needs of their consumers to produce good outcomes. Regulatory, government and media scrutiny in retail insurance have increased the focus on consumer protection, particularly surrounding pricing and transparency.