The Prudential Control and Resolution Authority (ACPR) updated its recommendations for insurers on Thursday, emphasizing in particular their “duty to advise” towards the insured. These changes are fueled by the lessons learned from controls carried out by the ACPR and the application of a law relating to green industry. The banking and insurance policeman, for example, asks distributors of insurance products “to communicate with their customers in order to prevent the risk of involuntary accumulation of insurance covering the same risk”.
In accordance with their “duty to advise”insurers must also “check that the insurance product still covers the needs of the insured” over time in damage insurance (automobile, home, etc.) and in more life insurance contracts, specifies a press release. In life insurance, the ACPR “advocates increased vigilance by distributors on the marketing of certain unit-linked media containing conditions for redemption, in particular when redemption compensation is provided”.
Units of account, investment vehicles involving a risk of capital loss but potentially more profitable, are developing in certain investment strategies investing in unlisted companies. The update of the recommendation also takes into account “integration of customer preferences regarding sustainability into the duty to advise” in life insurance. “As such, it recommends providing clients with clear, accurate and non-misleading information allowing them to invest with full knowledge of the facts based on their preferences in non-financial matters”completes the Authority, backed by the Banque de France. At the end of September, the ACPR invited insurers to review their contracts to remove exclusion clauses. “not in compliance with the state of law”.
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