Question ID: 1620 - Remedial action to be taken by manufacturer in case of material adverse effect on customer
Regulation Reference: (EU) No 2017/2358 - product oversight and governance requirements for insurance
Topic: Other
Status: Final
Date of submission: 10 Jul 2018
Question
Are manufacturers expected to rectify any circumstances that could have an adverse effect for customers?
EIOPA answer
Pursuant to Article 7(3) of Delegated Regulation 2017/2358, manufacturers that identify during the lifetime of an insurance product any circumstances related to the insurance product that may have a material adverse affect on the customer, shall take appropriate action to mitigate the situation and prevent further occurrences of the detrimental event. EIOPA cannot provide a specific threshold of circumstances that can be identified as having a material adverse effect on the customer. All circumstances of the specific situation should be taken into consideration in order to determine the appropriate action.