Itello collaborates with our life insurance customers on interpretation of and how compliance according to MiFID 2, IDD and PRIIPs should be met. The result provides a common view of the changes and creates a more effective administration of insurance policies in the Policy Administration System for the Nordic market Inca by Itello.
During 2018, two EU directives will come into effect as aims at increasing transparency about fees and costs and increasing protection of investors. The third – IDD has been postponed until October 1st 2018.
The new regulations affect Itello’s customers throughout their operations. The regulations only affect a limited but vital part of the operation supported by the policy administration system provided by Itello. The central part concerns the transparency regarding costs and commissions in saving products and mutual funds. The costs and provisions should be reported to customers before both purchase and as during the life cycle of the product. Similar rules apply to insurance products.
The work around agreeing on the regulations has been delayed several times, which has created challenges in achieving regulatory compliance. A consequence, there is currently no legal text for IDD, only a memorandum from the Swedish financial supervisory authority – Finansinspektionen. In these challenges, it has been extremely important to have a close dialogue with our customers about their interpretation of the information available regarding the new regulations shall be interpreted and what action that requires. Therefore, Itello has been in constant contact with its customers and taken note of their thoughts and interpretations of the regulations. Itello has also been in close contact with our lawyers for updated information on interpretations and practices around the regulations.
Based on the dialogue with our customers, following areas are discussed:
– Where there is a consensus among our customers on how the rules are interpreted and what effects these interpretations have
– Where interpretations of the regulations are different but where a solution can be identified and implemented by configuration of Inca.
– Where requirements based on how our customers are organised creates different needs for how the requirements can be met
Our collaboration with our customers is ongoing in order to create conditions for compliance. The first features of this have already been delivered to several of Itello’s customers.