Value for Money: EIOPA's Methodology and Its Consequences

EIOPA published its methodology on Value for Money (VfM) benchmarks in relation to unit-linked (UL) and hybrid insurance products.
For each product cluster based on a list of indicators covering costs and returns the methodology defines VfM indicators for calculating benchmarks.
The objectives of the benchmarks are primarily to assist national competent authorities (NCAs) in identifying products with higher VfM risks and eventually to allow comparability so that insurance product manufacturers can determine if their products will offer value.
The aim of the presentation is to summarize the methodology and current developments on this topic. We will also briefly outline the guidance notice of the German regulator BaFin, which describes how BaFin applies the tools developed by EIOPA.