The purpose of a Target Market Statement is to explain the identified target market, intended value, expected distribution strategy and fair value assessment outcomes for each AXA Commercial Insurance product manufactured by AXA Insurance.
It outlines our approach to Product Oversight and Governance to demonstrate how we design, monitor and review our products to ensure they continue to provide fair value and meet the needs, characteristics and objectives of the target market including vulnerable customers.
AXA UK’s Product Governance Policy sets out the standards that AXA Commercial is required to implement to ensure the achievement of fair value and good customer outcomes by having robust product oversight and governance arrangements, systems, policies and procedures in place, which encourage a business culture with customers’ interests at its core.
These requirements are in place in order to ensure that all AXA UK customers receive fair value and that good customer outcomes are delivered in line with AXA UK’s defined customer outcome statements.
Target Market Statements provide information about all of the AXA Insurance products distributed. This includes:
Manufacturers of insurance products are required to complete an annual assessment to ensure that these products provide fair value to customers in the target market.
To help us complete our assessments, AXA Commercial requires some information from you to be able to demonstrate clearly the distribution channels we use do not compromise customer fair value.
Brokers who have a relationship with AXA Health and AXA Retail may receive separate contact from them.
Some trade bodies have collaborated to create a template. AXA Commercial has reconciled this against our own approach and where appropriate we have tried to align our own assessment with this template, while also providing an online solution to enable easier and quicker completion, so that brokers can meet their own regulatory obligations.
In most cases, if we were satisfied with your response in 2022, we will simply contact you to confirm that the information remains the same. Our Strategic Partners will also receive a questionnaire due to their size, even if they responded last year.
If you require an extension please contact firstname.lastname@example.org. So we can complete our own assessments, we would appreciate where possible brokers keeping to the original submission date but understand there could be extenuating circumstances preventing you from doing this.
AXA Commercial needs a clear understanding of the distribution process. The broker partners who we have a direct relationship with are required to provide information about their services, remuneration and distribution arrangements. It's important that product manufacturers and distributors work together to ensure that customers receive fair value from the goods and services they purchase and achieve the right outcomes at every point of their journey, regardless of who they're interacting with.
Once we have received a response, AXA Commercial will review this and let the broker know if there are any further questions, or any next steps.
AXA Commercial must ensure that our products are delivering fair value to end customers. This means working closely with all of our broker partners and obtaining more information from them than we have previously, about the remuneration they receive and what they do for customers in return for this. The information we have requested is in line with the requirements set out by the FCA in their PROD rules. This does not require insurers to obtain details of any separate commercial agreements between distributors and other firms, which are paid by the distributor (rather than being included separately in the premium) or a breakdown of the distributor’s costs or profit margins.
We know that our broker partners need to understand the value of our products, the target market, and how this impacts their distribution strategies. This information, based on our 2022 assessments, is already included in the Target Market and Fair Value Statements for our products, which can be accessed via our dedicated broker website https://www.axaconnect.co.uk/
Our Target Market and Fair Value Statements will be updated during 2023 to reflect the outcomes of our latest product value assessments when they are completed.
Please contact email@example.com so we can try to resolve any issues or answer questions you may have.