PROD 1.4 Application of PROD 4
- (1)
an insurance intermediary; and
- (2)
an insurer,
with respect to:
- (3)
manufacturing insurance products; and
- (4)
distributing insurance products.
[Note: articles 1(2) and 25 of the IDD]
1In PROD an insurance product may be read as being a reference to the product for distribution to customers generally and is not intended to refer to each individual contract of insurance being sold or underwritten (unless the context indicates otherwise).
1 PROD 4 does not apply in relation to the manufacturing or distributing of:
- (1)
a contract of large risks, or
- (2)
[Note: article 25(4) of the IDD]
When an intermediary may be considered to be manufacturing
2For the purposes of [PROD 4.2.1R, PROD 4.2.2R, PROD 4.2.29R, PROD 4.2.34R, PROD 4.3.1R and PROD 4.3.2R], insurance intermediaries shall be considered manufacturers where an overall analysis of their activity shows that they have a decision-making role in designing and developing an insurance product for the market.
3(2) A decision-making role shall be assumed, in particular, where insurance intermediaries autonomously determine the essential features and main elements of an insurance product, including its coverage, price, costs, risk, target market and compensation and guarantee rights, which are not substantially modified by the insurance undertaking providing coverage for the insurance product.
3(3) Personalisation of and adaptation of existing insurance products in the context of insurance distribution activities for individual customers, as well as the design of tailor-made contracts at the request of a single customer, shall not be considered manufacturing.
[Note: article 3 of the IDD POG Regulation]
1The effect of PROD 1.4.4UK2 and PROD 1.4.6R is that an insurance intermediary needs to consider if it is manufacturing an insurance product and, if so, should comply with PROD 4.2 (Manufacture of insurance products).
Effect of provisions marked “UK”
- (1)
1Subject to (2) and PROD 1.4.3R, provisions in this section and in PROD 4 marked “UK”2 apply to firms manufacturing or distributing insurance products, but to whom the IDD POG Regulation does not apply, as if they were rules.
- (2)
For the purposes of (1), a word or phrase used in the IDD POG Regulation and referred to in column (A) has the meaning indicated in Column (B) of the table below:
(a)
(b)
“Article 8(2)”
“customer” and “potential customer”
“insurance-based investment products”
“insurance distribution activities” and “distribution activities”
“insurance distributor”
“insurance intermediary”
“insurance undertaking”
“manufacturer” and “manufacturers within the meaning of Article 2 of this Delegated Regulation”
“manufacturing”
“shall”
must
- (3)
In this sourcebook, where a reproduced provision of an article of the IDD POG Regulation refers to another part of the IDD POG Regulation, that other provision must also be read with reference to the table in (2).
Where?
1 PROD 4 applies to a firm with respect to activities carried on from an establishment maintained by it, or its appointed representative, in the United Kingdom.
[Note: article 7(2) of the IDD]
[deleted]2