Methodology on value for money benchmarks for IBIPs

The insurance market is undergoing significant regulatory changes aimed at ensuring transparency, fairness, and consumer protection. One of the key initiatives driven by EIOPA (European Insurance and Occupational Pensions Authority) is the implementation of value for money benchmarks for Insurance-Based Investment Products (IBIPs). These benchmarks are designed to help regulators, insurers, and consumers assess whether products deliver fair value relative to their costs and benefits.

This 2-hour training will provide participants with a comprehensive understanding of the regulatory context, the methodology proposed by EIOPA, and its practical implications for the Luxembourg insurance market. By the end of the session, attendees will be equipped to navigate the challenges and opportunities arising from these new expectations.

By the end of this training, participants will be able to:

• understand the regulatory context and EIOPA’s objectives for value for money;
• master the benchmark methodology, including product categorisation, key indicators, and practical benchmarking technics;
• explore the impact on the Luxembourg market, with actionable insights for insurers and benefits for consumers.

• Regulator context and expectations for the insurance market
• Value for money benchmark methodology:
  • Overview of the approach proposed by EIOPA and its objectives regarding insurance products
  • Concepts
  • Product categorisation
  • Indicators to consider
  • Benchmarking
• Expected impacts on the Luxembourg market:
  • What are the challenges and recommendations for insurers?
  • What can we expect for consumers?

This training is coordinated by Pavel Kostyuchenko, Partner, Antonella Argalia, Senior Manager, and Harshita Jain, Manager at PwC Luxembourg. It will be delivered by experts from PwC Luxembourg's Insurance sector, who have acquired in their daily work a significant and detailed experience of the issues faced by insurance market players. (Depending on the needs expressed, PwC Luxembourg may mobilise experts within its network).

• Pavel Kostyuchenko is a partner and Fellow of the Institute and Faculty of Actuaries, specialising in actuarial consulting and risk modelling for the financial sector with over 20 years of experience, including 17 years at PwC. He leads PwC Luxembourg's actuarial and risk modelling services practice and previously headed actuarial practices in PwC’s CEE offices in Asia. Pavel advises insurers and reinsurers on reserving, financial reporting, IFRS17, Solvency II, business planning, and acquisitions. He contributes to PwC’s global Actuary of the Future and Actuarial Modernisation initiatives and supports the UK Institute and Faculty of Actuaries on the profession’s future in overseas markets. His expertise includes risk capital frameworks, strategic asset allocation, and ALM, serving clients in insurance, asset management, and the public sector.
• Antonella Argalia is a senior manager within PwC Luxembourg’s insurance practice since October 2016, bringing over 25 years of experience in the European insurance industry. She began her career at Generali Assicurazioni in Italy and has worked with Swiss, German, and Belgian life insurance companies in Luxembourg, focusing on product management across various markets. Antonella has extensive expertise in regulatory projects, product development, and marketing, particularly for wealth solutions targeting (U)HNWI through unit-linked life insurance products under the EU freedom to provide services regime. Her key projects include IDD assistance, insurance due diligence, product suitability, solicitation, and regulatory analysis.
• Harshita Jain is a manager at PwC Luxembourg since March 2023, specialising in actuarial audit and advisory assignments within the life insurance sector, focusing on reserving under Lux GAAP and Solvency II, due diligence, and IFRS 17 proactive assurance. With over 13 years of actuarial consulting experience in US and European life insurance markets, she excels in modelling and valuation of life and annuities products, asset modelling, ALM, financial reporting, and regulatory implementation. A Qualified Actuary and MBA holder, Harshita leads diverse projects including model risk management, strategic asset allocation, and product development support, demonstrating strong project and people management skills.