Product Oversight and Governance

What has changed?

On 1 October 2018, the Insurance Distribution Directive (IDD) came into force. This is a requirement for insurers to maintain, operate and review a Product Approval Process and make appropriate information available to its distributors. It also requires insurers to provide their distributors with an outline of the identified target market for those products.

How does this affect me?

The IDD applies to all companies and individuals who distribute insurance to customers. HSB Engineering Insurance Limited has an established Product Approval Process that covers the entire product lifecycle, from new product development to product review.

Information about identified target markets is available in the Insurance Product Information Document (IPID) for the specific product.

What do we do?

  • Extensive research of the product concept is undertaken to identify an appropriate target market. Engagement with our Product Innovation Group also ensures innovation drives our product development.
  • Customer type, distribution channel, charging structure as well as the wider market and legal developments are identified and considered.
  • Risk assessments and regulatory reviews are undertaken to ensure fairness to customers and that any risks to the identified target market are appropriately managed.
  • Product marketing, training and technical support ensures knowledge of the product is properly assessed and competence is evidenced prior to distribution of the product.
  • Post launch, the overall product performance is interrogated and reviewed. This includes claims reports, systems reviews and customer feedback being processed to identify on-going product and market suitability.

More information on the IDD can be found on the FCA's website at

You can also contact us directly via your local Business Development Manager.

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