Fair Value Assessments – Brokers FAQ’s

Why are AXA Commercial asking for this information?

Manufacturers of insurance products are required to complete assessments 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.

Will brokers receive the same questionnaire to complete from AXA Health and AXA Retail?

Brokers who have a relationship with AXA Health and AXA Retail may receive separate contact from them.

Is there one standard questionnaire that insurers could use, so that there is consistency across the industry?

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.

Can brokers request an extension to the submission request?

If you require an extension please contact vidc.ins@axa-insurance.co.uk. 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 manufactures the product, so why do brokers have to complete 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.

What response will brokers receive from AXA Commercial following completion of the questionnaire and when?

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.

The information AXA Commercial has requested from brokers is commercially sensitive and so cannot be provided, why is this needed?

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.

When will AXA Commercial share information relating to its product fair value assessments with us?

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 previous 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 2024 to reflect the outcomes of our latest product value assessments when they are completed.

Who do brokers contact if they have questions or cannot access the questionnaire?

Please contact vidc.ins@axa-insurance.co.uk so we can try to resolve any issues or answer questions you may have.