Manufacturers of insurance products must:

• Complete Fair Value Assessment(s) in good time on, at least, an annual basis.

• Share the required information with distributors and take all reasonable steps to obtain information required from distributors to enable them to undertake the product reviews.  

• Take all necessary steps to have appropriate product governance frameworks in place.

• Include in the governance framework the need to comply with PROD 4.5 and demonstrate all relevant products offer fair value to customers.

• Ensure all products covered by the value measure rules have been identified and offer fair value to customers.

Fair Value Assessments present a number of operational challenges. The biggest challenge for Manufacturers is the actual identification of total costs to the end customer through the distribution chain.

Manufacturers also need to manage:

• A large number of relationships with co-manufacturers, distributors, and sub-distributors.

• A large number of products, and the distribution of fair value forms for these products across the distribution chain.

• The communication process with distributors, monitoring the completion status of fair value forms, as well as providing actionable feedback.

• Data input consistency so that information can be collated and reported.

• The development of meaningful reporting to evidence compliance against fair value outcomes. 

• The escalation of key issues to senior management and the implementation of remedial actions.

The manual approach to Fair Value Assessments can result in untimely completion, a lack of evidence and reporting, and the process ultimately becoming a "tick box" exercise with little value. This leads to significant costs in terms of time and money and fails to meet regulatory expectations.

Streamlining and automating these processes is crucial for providing real value to all parties involved.

Streamline Collaboration with Automated Communication

VisRisk provides an easier experience for our clients as it improves and facilitates the interaction between manufacturers, co-manufacturers and distributors. By combining VisRisk with communication tools, there can be automated and secure real-time conversation flows between parties. 

• Single or bulk loading and management of distributor’s details.

• Consideration of the role of the co-manufacturer in the process.

• Automatic email notification of form distribution at defined workflow stages.

• Integrated communication to the manufacturer showing status and submission of fair value forms.

• Communication of feedback to the manufacturer driven by automated email notifications. 

This saves time and reduces manual effort, freeing up resource for other important tasks. 

Integrated Workflow Capabilities

VisRisk’s workflow capabilities streamline the Fair Value Assessment exercise, providing internal peer review options and the circulation of forms to co-manufacturers and distributors. The flexibility of this workflow functionality enables us to replicate your business practices simply and effectively to deliver oversight, efficiency and ultimately cost-savings.

• Co-manufacturers, distributors and sub-distributors capability to add other parties involved in the distribution chain.

• Full visibility of the entire fair value form completion status across all parties.

Digitalised Market Forms and Product Library

Automated templates allowing for the simplified collection of accurate and structured product data across multiple parties. This reduces manual input and enables quantifiable analysis at product and entity level.

• Enhanced market template to collect meaningful data per product from the distributor.

• Single or bulk loading and management of product information.

• Creation of both single and combined products.  

• Setting of product risk tolerances (e.g. acceptable remuneration cost per product).

Easily identify your Fair Value compliance

VisRisk's platform simplifies the process of assessing fair value compliance for Firms. By integrating input from both the manufacturer and distributors, we provide a comprehensive view of product compliance and customer outcomes.

The platform's user-friendly interface makes it easy to identify exceptions and take corrective actions, ensuring that products offer fair value to customers.

• System logic driving the automated analysis of fair value inputs.

• Production of PROD 4 status reports showing exceptions across all products and distributors.

• Reporting of total costs to the end customer through each distribution chain at product level.

• Intuitive dashboards tailored to senior management and key governance groups.

Real-time Interactive Dashboards

Built in dashboards that show the information visually in a simple and interactive manner, allowing for effective decision making. VisRisk’s dashboards will help you keep track of the status of the Fair Value Assessments and easily identify exceptional items from distributor responses. The reporting component enables assessment of the delivery of good customer outcomes as well as product compliance with PROD 4.2 of the FCA Handbook.