CIPR 6.2.2 Developing insurance products — policies and procedures

(1) A QFC insurer must have policies and procedures, approved by the insurer's governing body and recorded in a durable medium, for the development of new insurance products (including insurance products developed by another insurer for which the QFC insurer will act as an intermediary).
(2) The policies and procedures must ensure that any new insurance product:
(a) is reviewed by the insurer's compliance officer to confirm that the insurer is authorised to provide or sell the product, and that the product satisfies all the requirements of these rules and any other relevant rules or laws;
(b) in the case of a new takaful product — is approved by the insurer's Shari'a supervisory board before it is offered to the insurer's customers;
(c) is assessed in relation to the insurer's business plan and risk appetite, and specifically in relation to its insurance risk policies and procedures;
(d) uses adequate information and data about the sustainability of the product and how it satisfies customers' needs; and
(e) is subjected to a thorough assessment of its main characteristics.
Guidance

The Regulatory Authority expects that a new insurance product would also be carefully reviewed by the insurer's risk management officer and the individual who exercises the actuarial function for it. The Authority considers it good practice for a QFC insurer to establish a committee in relation to product development.
(3) A QFC insurer must adequately support any intermediary that will distribute a new product to customers.

Guidance

The support should focus on minimising the possibility of mis-selling the new product, and could include training for the intermediary's employees, or documents explaining the new product and its significant characteristics.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).