Product Oversight & Governance - Product Approval Process and Target Market Statements
In line with the FCA’s policy statement PS21/5, ‘General Insurance pricing practices’, we want to share with you an overview of our governance processes in place across Methodist Insurance as to how we oversee the design, approval and review of our products during their lifecycle.
You will also find our Target Market Statements, developed for each of our products, to provide clarity as to whom the products are designed for.
What processes do Methodist Insurance have in place?
The key areas outlined below cover the various processes we have in place to monitor our products as well as the information we may require from our distributors (brokers) throughout the lifecycle of a product.
Product development process
The product development process has been designed to ensure that we have a consistent approach to the development of new or significantly adapted products and protects against our products having any potential to cause customer harm. The process comprises 6 stages:
The process allows for continual monitoring and decision-making throughout the journey, taking in to account a number of factors such as customer testing and an evaluation of fair value. Each product development project will have a core team of individuals assigned to it to ensure a balanced approach is taken.
Product review process
The product review process has been designed to ensure that we assess our products against a range of factors and metrics, to check for any risk of customer harm, and to ensure we have the necessary controls in place to know when we need to take remedial action.
These reviews will be carried out annually (or more frequently as determined) to analyse product performance and to ensure they are meeting customer needs and continue to provide fair value.
Information required from distributors (brokers) and other distribution partners
As part of the FCA rules we will be requesting information from distributors that sell our products to understand the total value of the product to the customer. Examples of this include fees and charges, complaints relating to the product and evidence that the product has been sold to the right target market.
Target Market Statements
An ongoing requirement of FCA rules is for the product manufacturer to provide our distributors (brokers) with clarity as to who the product is aimed at and how it can be offered to customers.
We have produced an overarching Target Market Statement for each of our products which demonstrates:
- Who the product is designed for
- Any specific characteristics you should be aware of
- Who the product is not designed for
- Key value elements of the product that are important to the target market
- What needs are being met by the product
- How the product can be sold, including advice
- How value is assessed
01 October 2021
24 January 2022
24 January 2022