Firms are expected to be consumer-centric – aligning products to consumers’ needs throughout the product lifecycle. Ongoing challenges such as an evolving and expanding Regulatory landscape, the exposure of vulnerable consumer segments due to COVID-19 and Government / media scrutiny on insurance firms are converging on consumer protection and product issues, writes Gillian Kelly, Head of Conduct Risk Services.
Assuring products is complicated, as firms rely heavily on manual assurance processes, a complex IT environment and third party outsourcing to deliver their product offering. 1st Line of Defence and 2nd Line of Defence spend on assuring products can be reduced through the introduction of automation and preventative controls.
KPMG has designed a bespoke methodology, which harnesses data collected across the product lifecycle and reduces the cost burden and manual nature of assurance processes. Our methodology highlights how firms can centre their Product Oversight and Governance programme on consumer interests and address Regulators’ supervisory expectations with regard to the new requirements. In addition, it arms our clients with a comprehensive understanding of their products and underlying control environment, unlocking key insights to managing product sets and assisting with assessing product value.