Implementation of the new Insurance Distribution Directive has been delayed from 23 February until October, it has been confirmed
The European Parliament and European Council have agreed delay implementation of the Insurance Distrubution Directive until 1 October.
The new rules had been due to come into force next week on 23 February, but there has been pressure from the industry and from regulators in member states to delay its introduction.
The delay has been welcomed by the market.
The EY said the delay will “enable the insurance industry to better prepare for the directive and for the changes necessary”.
The new rules have been designed to improve protection for consumers and retailer when buying insurance products and increasing the transparency of price when buying an insurance policy.
On 6 February, the FCA confirmed that it planned to delay the directive and that the European Commission had submitted a proposal to the European Parliament.
William Vidonja, head of conduct of business at Insurance Europe said: “It is crucial that the European insurance industry has sufficient time to implement the required changes from the point at which regulatory certainty is established.”