What is PRIIPs Regulation?
PRIIPS is a European Regulation (PRIIPs Regulation) which is effective as of 1st January 2018.
The Regulation imposes the implementation of a “Key Information Document” (KID) for retail investors (and therefore including applicants to a life insurance contract) that describes the key features of a product in a clear and understandable manner, before any contractual engagement takes place.
The Regulation aims at a better protection of the retail investor by improving the transparency of a product and then the comparability between different financial products within the Member States of the European Union.
Timeline
![PRIIPS Timeline](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%201-EN.jpg)
![PRIIPS Timeline](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%201-EN_0.jpg)
![PRIIPS Timeline](https://www.life-insurance360.com/sites/baloise/files/styles/media_910/public/2019-11/Chapitre5_Desktop-Infographie%20PRIIPS%201-EN.jpg?itok=Kfdj_Uei)
What happened from 1st January 2018?
![PRIIPS from 1st January 2018](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%202-EN.jpg)
![PRIIPS from 1st January 2018](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%202-EN_0.jpg)
![PRIIPS from 1st January 2018](https://www.life-insurance360.com/sites/baloise/files/styles/media_910/public/2019-11/Chapitre5_Desktop-Infographie%20PRIIPS%202-EN.jpg?itok=a0mabUXz)
What to do?
![PRIIPS - what to do?](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%203-EN.jpg)
![PRIIPS - what to do?](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%203-EN_0.jpg)
![PRIIPS - what to do?](https://www.life-insurance360.com/sites/baloise/files/styles/media_910/public/2019-11/Chapitre5_Desktop-Infographie%20PRIIPS%203-EN.jpg?itok=4f57uume)
During life time contract
![PRIIPs - During life time contract](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%204-EN.jpg)
![PRIIPs - During life time contract](/sites/baloise/files/2019-11/Chapitre5_Mobile-Infographie%20PRIIPS%204-EN_0.jpg)
![PRIIPs - During life time contract](https://www.life-insurance360.com/sites/baloise/files/styles/media_910/public/2019-11/Chapitre5_Desktop-Infographie%20PRIIPS%204-EN.jpg?itok=ddTWSLhH)
What should be included in the generic Key Information Document (KID) presented to the policyholder?
KEY INFORMATION DOCUMENT | |
Purpose | Purpose of the KID |
Product | Generic information on the product and the provider marketing it: contact information ... |
What is the product? |
What type of product it is: the objectives, what type of investor should invest in it, its description |
What are the risks and what could get I get in return? | What is the risk and the potential return of the product (scenario) |
What happens if the company is unable to pay out? |
What should happen in case of default of the product provider? |
What are the costs? | The overall cost structure of the product |
How long should I hold it and can I take the money out early? | The investment horizon: how long should I keep the investment and can I withdraw prematurely |
How can I complain? | How to make a claim |
Other relevant information |
Other relevant information on the product or the company |
PRIIPS is a regulation that requires to provide the policyholder of a Luxembourg life insurance contract with a Key Information Document (KID) that describes the main features of the product before subscription.