Insurance Mediation
Directive
Anna Kadar
Insurance and Pensions Unit
DG Internal Market and Services
European Commission
08/04/2015
The Insurance Mediation Directive (IMD1)
and its recast (IMD2)
• IMD1 (2002): removing barriers to free movement of
insurance agents and brokers, requirements on insurance
intermediaries selling insurance products (who can sell?)
• IMD2 (proposal 2012): extends IMD1 to all sellers of
insurance products (including insurance companies) and
extends IMD1 to all products (including life insurance with
investment elements) (what can the intermediary sell?).
• Main objective: consumer protection
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IMD and its links to financial services
• MiFID II (Markets in financial instruments Directive)
regulates the sale of insurance-based investment
products via an amendment to IMD1
• Definition of insurance PRIPs (Packaged Retail Invesment
Products)
• Tying and bundling of products (i.e. mortgage and
payment protection or life insurance) (MCD – Mortgage
Credit Directive)
• Out-of-court settlement of disputes (ADR – Alternative
Dispute Resolution)
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Consumer protection in IMD
• Authorisation / registration requirements (business card)
• Insurance comparison websites included in the scope
• Inclusion of ancillary sellers (travel agents, car rentals) as
well as insurance companies
• Fair, clear and not misleading information provision
• Demands and needs of customer
• Professional qualifications requirements (professional
training to match the insurance product)
• Remuneration disclosure requirements (nature, source,
amount) + insurance company employees' variable
remuneration (bonus)
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Insurance products with investment
elements
• Additional
consumer
protection
requirements
for
insurance-based investment products
• MiFID II rules on investor protection
• Amending IMD1
• Management of conflicts of interests between the
insurance intermediary/employee and the customer
• Acting in the best interest of the consumer
• Ban on commissions for independent advice (or MS option
to do so)
• Consumer protection as regards cross-selling practices
• Consumer protection as regards out of court settlement of
disputes
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Timing of IMD2
• EP plenary vote took place on 25 February 2014 (not on
legislative resolution)
• Incoming Parliament?
• No Council position yet (expected by the summer)
• IMD2 expected to be finalised by end 2014
08/04/2015
Thank you for your attention.
Questions?
Email: anna.kadar@ec.europa.eu
08/04/2015