Member states now have two years to embed the directive into their regulatory framework
The European Council has adopted changes to the revised Insurance Distribution Directive, formerly the Insurance Mediation Directive 2.
The directive sets out new rules for any intermediary that sells insurance to adhere to.
The new directive is aimed at:
- Extending the scope of application to all distribution channels, including proportionate requirements for those who sell insurance products on an add-on basis
- Identifying, managing and mitigating conflicts of interest
- Strengthening administrative sanctions, as well as measures to be applied in the event of a breach of key provisions
- Enhancing the suitability and objectiveness of insurance advice
- Ensuring that sellers’ professional qualifications match the complexity of the products they sell
- Clarifying the procedure for cross-border market entry
The directive also seeks to:
- Improve retail insurance regulation
- Establish the conditions necessary for fair competition between distributors of insurance products
- Strengthen policyholder protection, in particular with regard to life insurance products with an investment element
Member states will be able to apply more stringent consumer protection provisions, providing they are consistent with EU law.
The directive was adopted at its first reading after an agreement was reached with the European Parliament on 30 June 2015.
Member states now have two years to embed the directive into their regulatory framework.