UK insurers are pleased that the European Commission has begun proceedings against...
UK insurers have welcomed the European Commission's move to begin proceedings against countries failing to comply with the Insurance Mediation Directive (IMD).
On 12 October the European Commission issued reasoned opinion to the 10 countries which failed to adopt the IMD before the 15 January deadline.
France, Germany and Italy are among the 40% of countries that have yet to pass national legislation in accordance with the IMD.
For 10 months the European Federation of Insurance intermediaries (Bipar) has pressured the European Commission to take steps to speed the implementation of the IMD.
Bipar EU Committee chairman David Harari welcomed the EU's stance, saying the IMD was crucial to bringing about a meaningful single market for insurance intermediaries.
Harari said: “This text will lead to the proper regulation of intermediaries throughout the European Union.”
Biba, a Bipar member, also supported the move, saying that although some Biba members were critical of the UK's execution of the legislation, many were pleased that the EU was finally taking action against states that were “dragging their heels.”
A Biba spokesman said: “The London market has always been a leading market, largely due to the way it has been regulated.”
Bipar has also urged the Committee of European Insurance and Occupational Pensions Supervisors to agree to provisional arrangements to allow all EU intermediaries to benefit from the passporting rights until all EU member states have implemented the IMD.
