European Insurance and Occupational Pensions Authority follow-up report finds stronger but uneven national supervision of insurance product governance

The European Insurance and Occupational Pensions Authority published a follow-up report to its 2023 peer review on Product Oversight and Governance, concluding that National Competent Authorities have generally strengthened supervision of insurance product governance requirements, but that progress remains uneven across Member States. The report points to a broader shift from general or formal oversight toward more operational, risk-based and product-focused supervision, with particular relevance to insurance manufacturers and insurance-based investment products. Many NCAs now use more developed conduct risk assessment frameworks that combine product-specific and undertaking-specific analysis with practical tools for supervisory prioritisation, helping them identify products, firms and practices that may cause consumer detriment. Supervisory work has also become more systematic and outcome-oriented through greater use of off-site analysis, thematic reviews, product-focused assessments and on-site inspections. In several cases, this has led to remedial action, including product changes, cost reductions and product withdrawals. At the same time, the report says weaker progress persists in areas that require changes to internal methodologies, organisational arrangements and resources, although communication of supervisory expectations to the market has improved and helped clarify how POG requirements should be applied in practice. EIOPA will continue to monitor implementation of open recommended actions. Where relevant, the competent authorities concerned will be asked to inform EIOPA within six months of the follow-up report's approval on further progress achieved.