The Belgian market authority FSMA has made recommendations in order to improve the quality of financial reports in branch 23 life insurance packages.
These half-year and annual reports aim to inform Belgian insurers’ clients on the state of their investments.
This follows research driven by the regulator that has highlighted various deficiencies in the practices of Belgium-based insurers. The FSMA has found out that they were not always producing these reports or that they fail to inform the clients in a qualitative way, it said in statement today.
The FSMA quoted as examples that some reports did not include a single information regarding the portfolio composition of the investment funds selected for branch 23 life insurance packages and that information was missing on currency and derivatives trading operations.
Investment funds’ strategies and risks they include were not enough detailed, the Belgian regulator also underlined.
If the quality of branch 23 packages’ reports has improved since the study was published, the FSMA recommends the inclusion in the reports of any pertinent information regarding the underlying assets of investment funds that compose branch 23 life insurance packages.
It also demands Belgian insurers to explain clearly how these investment funds work and to publish the packages’ financial reports on their websites.