Manufacturers are to continuously monitor and regularly review insurance products they have brought to the market, to identify events that could materially affect the main features, the risk coverage or the guarantees of those products.
They should assess whether the insurance products remain consistent with the needs, characteristics and objectives of the identified target market and whether those products are being distributed to the target market or are reaching customers outside the target market.
Manufacturers are to determine the appropriate intervals for the regular review of their insurance products, thereby taking into account;
− the size and scale of the product,
− contractual duration,
− complexity of those insurance products,
− their respective distribution channels, and
− any relevant external factors such as changes to the applicable legal rules, technological developments, or changes to the market situation.
Manufacturers that identify during the lifetime of an insurance product any circumstances related to the insurance product that may adversely affect the customer of that product are to take appropriate action to mitigate the situation and prevent further occurrences of the detrimental event.
Manufacturers are to promptly inform concerned insurance distributors and customers about the remedial action taken
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