EIOPA-Report on Good Supervisory Practices regarding knowledge and ability requirements for distributors of insurance products
The “Report on Good Supervisory Practices regarding knowledge and ability requirements for distributors of insurance products” was drafted by the European Insurance and Occupational Pensions Authority and published on 9th December 2013. As stated in the report (page 59), EIOPA has taken into consideration the comments of major stakeholders such as the Insurance Europe, the German Insurance Association, BIPAR, Allianz, FFSA, UK Financial Services Consumer Panel, BEUC (European Consumer Organization), I.K. Rokas & Partners Law Firm etc. EIOPA took into consideration our comments as you can see in pages 8, 10, 16 and 55.
Notion of “appropriate knowledge and ability” to complete
tasks and perform duties adequately
To demonstrate ethical and professional conduct at all times
(e.g. ability to consider the best interests of the customer in
relevant circumstances connected with concluding and
executing the contract of insurance; knowledge of how to
protect the customer and all parties to a transaction against
fraud, misrepresentation or unethical practices in the area of
business opportunities).
• To communicate effectively to the customer regarding
general and particular1 terms and conditions of the contract,
complaints5handling procedures, risks and rewards of a
strategy or product, by using clear and comprehensible
language.
• To provide suitable and/or personalised recommendations,
for example, concerning the beneficiary clause, selection of
appropriate insurance products depending on their main
features and adapt the recommendation to the evolving consumer situation and needs.
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