APIR Systems, a provider of identifiers and data for financial products, sees an opportunity to expand into the life insurance industry following the introduction last month of design and distribution obligations (DDO) laws.

The DDO regime requires a target market determination (TMD) document for every financial product – including life offerings – sold.

The Financial Services Council has prepared TMD templates for its members that include a provision for a product identifier but has not prescribed which supplier of codes should be used.

Having an identifier code will make it clear which product is involved when there is correspondence about a product.

Such codes are already prevalent across the wealth management industry, used by all distribution platforms, custodians and fund administrators.

APIR Systems says since July the business has expanded its capabilities to include life insurers, who are now able to apply for a code for their products.

“Product identifiers will assist in facilitating the obligations set out in the DDO legislation by eliminating potential reporting ambiguities, including nil reports, between the various parties,” CEO Chris Donohoe said.

“The fact that we now have a unique code for these products will also result in a seamless, efficient integration at the back end.”

Mr Donohoe told insuranceNEWS.com.au MLC, an existing client, has already extended its use of APIR identifiers to include a selection of its life insurance products.

He says he has been engaging with the industry for many years about identifier codes.

“The DDO was the catalyst for change,” Mr Donohoe told insuranceNEWS.com.au. “The industry has concluded that it is in the industry’s best interest for efficiency.”