Which annual cost impact is shown in table 2 (composition of costs)? For insurance-based investment products, the table shows the impact of the different types of costs on the investment return the in

Which annual cost impact is shown in table 2 (composition of costs)? For insurance-based investment products, the table shows the impact of the different types of costs on the investment return the investor might get at the end of the recommended holding period. The values indicated are the impact on return per year, and more precisely the RIY at the recommended holding period. (Answer provided by the ESAs on the application of the PRIIPs Delegated Regulation, revised on 21 December 2022) 4. How should the information on costs mentioned in Article 2(4) of the delegated Regulation 2017/653 be presented? Article 2(4) of the Delegated Regulation indicates that “The details of insurance benefits in the section entitled ‘What is this product?’ of the key information document shall include ( … ) or the impact of the cost part of the biometric risk premium taken into account in the recurring costs of the ‘Costs over the time table’ calculated in accordance with Annex VII”. So that this information on the cost part of the biometric risk premium is shown to retail investors in a comparable and consistent way, the cost part of the biometric risk premium could be presented using a cost ratio, as for the other types of costs presented in the KID. For the purpose of this question and answer, this ratio is called in the following parts of this answer the “insurance costs ratio”. For the calculation of this insurance costs ratio, the costs to be disclosed should be the insurance costs according to Points 59 and 60 of Annex VI for insurance based investment products and the methodology to be used for the calculation of the ratio should be the methodology described in Points 70 to 76 of Annex VI. This information on this cost part of the biometric risk premium could be accompanied with the following narratives: “This is the impact of insurance costs. [Where full biometric risk premium presented]. This is the impact of the amount you are paying to buy insurance protection. [Where cost part of the biometric risk premium presented] This is the impact of the amount you are paying for insurance cover which exceeds the estimated value of insurance benefits Insurance costs are included in the “total costs” and “Management fees and other administrative or operating costs” presented in the cost section. (Answer provided by the ESAs on the application of the PRIIPs Delegated Regulation, revised on 21 December 2022) 5. Is the biometric risk premium part of the investment of insurance-based investment products?