The Product Approval & Review Process (PARP) is one of the internal processes for assessing the quality of products and services and their relevance for the target market. The objective of this process is to ensure that the interests of customers are taken into account in a balanced way in the development of new products and the review of existing products. It encourages continual improvement on the basis of feedback from customers and advisors, social developments, current circumstances such as COVID-19 and changes in legislation and regulations. The PARP applies to products that a.s.r. actively offers, as well as to inactive products and services that are regularly revised. In accordance with the assessment framework of the AFM and in line with legislation and regulations, a.s.r. set up the PARP tests, which relate to matters including cost efficiency, usability, safety and transparency.
The PARP assesses the cost-efficiency and usability of a product and / or service for the customer: to what extent does the product respond to a realistic need of the target group and does it have sufficient added value? The safety test concerns the outcome for the target group, which must be justifiable and acceptable in different scenarios. The transparency test is used to check whether the target group can properly assess the use of a product on the basis of the information that the customer receives from a.s.r. The comprehensibility test involves testing for comparability, the completeness of the information provided and / or whether product features are clearly defined.
In the PARP process, Risk Management, Legal Affairs, Compliance and the Actuarial Function (AF) all assess all product-related financial and non-financial risks for a.s.r.
In 2021, the PARP Committee assessed 1 new proposition (2020: 2), 9 product adjustments (2020: 8) and 15 reviews (2020: 11) of existing products (including packages such as the Voordeelpakket). An example of approval by the PARP Committee is the WGA Top-up Plus insurance. Active products are reviewed every three years.