WEBINAR

11 Dec 2017

Webinar: German Industry Standard for Category 4 PRIIPs

The PRIIP regulation will come into force on 01 January 2018. It affects the financial service industry as a whole, as many financial firms do indeed sell one or more “packaged retail investment and insurance-based products” (PRIIPs) to retail clients within the EEA, while many other firms provide direct or indirect services for PRIIP manufacturers. For the insurance sector, the “insurance-based investment products” (IBIPs) form the products within the scope of this regulation. The PRIIP regulation aims to inform potential retail clients about the risk, reward and cost structure of all PRIIPs via the “key information document” (KID). This new document will include qualitiative and quantitative information about the PRIIP it represents.

Since the range of regulated products is very wide, the “regulatory technical standards” (RTS) do define four categories of products with similar properties, and give separate instructions for the calculation of the required figures for each category. Due to the nature of profit sharing mechanisms, German IBIPs will almost exclusively belong to category 4. While the other three categories have to comply with precise methods and formulas, the category 4 products must heed the following principle:

“The component of the PRIIP that depends wholly or partly on a factor or factors that are  unobserved  in  the  market  shall  follow  robust  and  well  recognised  industry  and regulatory   standards   for   determining   relevant   expectations   as   to   the   future contribution  of  these  factors  and  the  uncertainty  that  may  exist  in  respect  of  that  contribution.”

This webinar will give an overview over the upcoming regulatory requirements of PRIIPs for insurers from a German point of view. In particular, it will introduce the industry standard that will be applied by the German insurance industry in order to calculate PRIIP information. The focus will be on the mathematical modelling and its implementation, as well as an explanation how the industry ended up using this standard.

Organised by the EAA - European Actuarial Academy GmbH.

Participants

The webinar is open to all interested persons.

Technical requirements and test session
Please check with your IT department if your firewall and computer settings support webinar participations (the programme GoToWebinar is used for the webinar). Please also make sure that you are joining the webinar with a stable internet connection.

On 5 December 2017, 12:00 – 12:30 CET, there will be a test session offered to all registered participants to test the software. Participation is voluntary but recommended.

Purpose and Nature

The aim of this webinar is to provide the participants with an overview over the compliance requirements of PRIIPs from the German insurance industry perspective. In particular, it aims to provide a basic understanding of the industry standard used by German insurers to comply with the PRIIPs regulation. In order to achieve this, the webinar will start with an explanation of the European and German regulatory framework, and then proceed to introduce the industry standard itself in terms of the mathematical models used for the calculation of PRIIP information, as well as some concrete examples.

Language

The language of the webinar will be English.

Lecturers

Nils Rautenberg, PhD
Nils is deputy head of the life insurance product development division of the medium-sized German insurer Provinzial Rheinland. He is head of the implementation team for PRIIPs for his employer, and member of various subcommittees of the German Insurance Association (GDV) tasked with the development of a fit-for-purpose industry standard for PRIIPs.  

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