The principle of “value for money” for the customer of an insurance company was sanctioned by the EU Delegated Regulation on POG (Product Oversight Governance) and was subsequently taken up by IVASS Regulation no. 45 of August 4, 2020. EIOPA has also expressed itself on the subject several times, first in the document published in October 2020 “EIOPA’s approach to the supervision of product surveillance and governance” and subsequently in the document “Methodology for assessing the quality-price in the unit linked market”.
If the principle is very clear, the concrete implementation methods are less so, especially with reference to non-IBIPs products where objectively little progress has been made for the formalization of quantitative product tests.
This theme was the focus of an important conference held at the La Sapienza University of Rome, which was also attended by the Secretary General of IVASS with his report (see attachment).
Algoritmic® has been following these issues for some time and is pleased to announce that it has submitted for registration the ALGORITMIC© MODEL, an innovative approach to measuring value for money for customers of non-IBIPs products. The approach, based on scientific research which is the cornerstone of Algoritmic®‘s activity, makes it possible to measure the value brought to the customer by the product offered through objective parameters, taking into account the types of guarantees offered and any ceilings and limitations. The adoption of the model – currently in the test phase – will allow insurance companies to document the quantitative test carried out in a scientifically incontrovertible manner.
Please, read the attached file by clicking HERE.