The Slovenia Insurance Supervision Agency has issued supervisory expectations for insurers and other manufacturers of insurance-based investment products, explaining how it will assess whether product oversight and governance arrangements are effective, proportionate and supported by evidence. Manufacturers must demonstrate that each product remains appropriate for its defined target market throughout its life cycle. The expectations reinforce the agency’s supervisory focus on value for money in investment life insurance following its earlier review of insurers’ practices in this area. Product governance must operate as an integrated system rather than a formal written framework. Manufacturers should apply an objective and repeatable method for determining product complexity, define target and negative target markets in specific and verifiable terms, conduct separate financial or product testing and consumer testing before marketing, and align distribution with the product and its target market. They must regularly monitor consumer outcomes and product suitability, address deviations promptly, assess value against costs, risks, benefits, insurance coverage and other features, and maintain a complete, verifiable evidence trail for key decisions. The document creates no new legal obligations, but the agency will not regard formal descriptions without supporting evidence as sufficient.
Slovenia Insurance Supervision Agency sets product governance expectations for insurance-based investment products
The Slovenia Insurance Supervision Agency has set expectations for effective and evidence-based product governance by insurers and other manufacturers of insurance-based investment products. Manufacturers must define target markets, test products before marketing, align distribution and monitor consumer outcomes throughout the product life cycle. They must also demonstrate value relative to costs, risks, benefits and insurance coverage, backed by a verifiable evidence trail.