The Dutch Authority for the Financial Markets has published findings from a review of whether developers of supplemental health insurance comply with product approval and review process requirements. It found that the basic framework for a sound PARP is in place, but said firms need to strengthen how customer interests are incorporated into product development and governance. The authority highlighted three main areas for improvement. Firms should document how they assess a product's complexity, unusual nature and potential impact, because that assessment determines how deeply the PARP should be applied, including target market identification, distribution strategy and scenario analysis. PARP policies should also set out how the process is actually carried out in practice, rather than only restating legal requirements, with process descriptions and templates to support consistent execution. In addition, policies should clearly define the role of second-line key functions in safeguarding the customer perspective, including who brings that perspective into decision-making, whether the second line advises or also co-decides, and how its input affects subsequent decisions. The Dutch Authority for the Financial Markets said it will continue to monitor developments and signals in the health insurance market in the coming years and may conduct further reviews. It noted that about 80% of people with basic health insurance also hold supplemental cover.

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