French Insurance Code
In forceI.-Insurance undertakings, as well as intermediaries when designing insurance products, shall develop, apply and update in accordance with Commission Delegated Regulation (EU) 2017/2358 of 21 September 2017, a validation process for each insurance product, or significant adaptations to an existing insurance product, prior to its marketing or distribution to policyholders or members.
This product validation process shall be proportionate and appropriate to the nature of each insurance product. It defines a target market of policyholders or members for each product, ensures that all relevant risks associated with that market are assessed, and ensures that the planned distribution strategy is well suited to that target market. This process shall include the definition of appropriate measures for the adequate distribution of the insurance product within the target market.
Insurance undertakings, as well as intermediaries who develop insurance products, shall regularly review the insurance products distributed, taking into account any event that could significantly affect the potential risk of the defined target market. The purpose of this review is at least to assess whether the product continues to meet the needs of the defined target market and whether the planned distribution strategy remains appropriate.
Insurance undertakings, as well as intermediaries who design insurance products, shall make available to distributors all the information necessary to assess all the characteristics of the insurance product and knowledge of the product validation process, including the defined target market for the insurance product.
II.-When a distributor of insurance products offers products that it does not design itself, it must equip itself with appropriate systems for obtaining the information mentioned in the last paragraph of I and for understanding the characteristics and defined target market of each insurance product.
