Product Oversight and Governance

How our products meet legal and regulatory requirements

Product oversight and governance refers to the systems and controls firms have in place to design, approve, market and manage products throughout the product’s lifecycle to ensure they meet legal and regulatory requirements.

Please note that this page only covers products that belonged to ARAG prior to their takeover of DAS UK in 2025. For products belonging to DAS prior to this, please see our page on DAS FVAs.

Product Governance

Product oversight and governance activities are designed to provide assurance that our products:

• Meet the needs of one or more identifiable target markets;
• Are sold to clients in the target markets by appropriate distribution channels;
• Deliver appropriate customer outcomes; and
• Offer fair value to customers in the target market.

Launching new products, or making material changes to our existing products, is governed through our Product Development Process. Before new products, or changes, are launched, our internal governance arrangements ensure that the following assessments are undertaken and approved:

• Identification of the target market and non-target market for each product;
• Ensuring the distribution approach aligns to the needs of the target market;
• Assessment of costs and charges and how these impact on Fair Value for the customer;
• Consideration of characteristics of vulnerability within the target market group; and
• Ensuring that Customer Communications are clear and transparent.

Distributor Product Information

Each Distributor Product Information (DPI) document is designed to provide a clear snapshot of our products, outlining the main cover, key benefits and any important limitations. For full details, including terms and conditions, please refer to the policy wording.

Product oversight and governance activities are designed to provide assurance that our products:

• Meet the needs of one or more identifiable target markets;
• Are sold to clients in the target markets by appropriate distribution channels;
• Deliver appropriate customer outcomes; and
• Offer fair value to customers in the target market.

Launching new products, or making material changes to our existing products, is governed through our Product Development Process. Before new products, or changes, are launched, our internal governance arrangements ensure that the following assessments are undertaken and approved:

• Identification of the target market and non-target market for each product;
• Ensuring the distribution approach aligns to the needs of the target market;
• Assessment of costs and charges and how these impact on Fair Value for the customer;
• Consideration of characteristics of vulnerability within the target market group; and
• Ensuring that Customer Communications are clear and transparent.

Fair Value Assessments (FVA)

In accordance with Financial Conduct Authority (FCA) Policy Statement (PS21/5), ARAG completes Fair Value Assessments (FVAs) for all core products on a regular basis. Such reviews will be undertaken every 12 months or more frequently where the potential risk associated with the product makes it appropriate to do so.

In assessing whether core products continue to offer fair value to the intended customers for a reasonably foreseeable period, these assessments include consideration of factors relevant to the product, including:

• The nature of the product, coverage and exclusions;
• The target market and distribution channels;
• The way we price the product (including the remuneration paid to distributors);
• Commission and margin levels - to ensure these are appropriate for the service received by the customer;
• Claims acceptance ratios;
• Complaints - analysis of customer complaints to identify and resolve root causes, particularly where the product fails to deliver as expected;
• Service delivery - to ensure service levels are in line with those we have led customers to expect including any barriers to claiming, or impact on vulnerable customers;
• Communications - to ensure customers continue to receive communications which are clear, transparent and timely; and
• Any relevant external factors such as changes to the applicable legal rules, technological developments, or changes to the market situation that may impact the value provided by the product.

It is important to note that the insurance element is only part of the product. Other services such as access to Helplines and Online Legal Documents also need to be considered when looking at the ‘value’ offered by the product.

Please note: FVAs are completed by the anniversary date of the last review, but it can take up to one month from the anniversary date for them to be prepared and circulated. If you have any questions about this process in the meantime, please contact your Account Manager.