Brussels, 27/02/2014 (Agence Europe) - On Wednesday 26 February, the European Parliament decided on its negotiating position on the draft IMD2 directive on insurance brokerage to boost consumer protection and information, but did not decide on its position in first reading.
The MEPs broadly agree with the draft Langen report in the form endorsed by the EP's economic and monetary affairs committee but, in a vote, the EPP Group rejected a measure requiring insurance brokers and companies to inform their customers about commission charges received from third parties.
The EP did, however, adopt an amendment tabled by the Greens/EFA requiring information to be provided to consumers about “all costs and associated charges relating to insurance intermediation or ancillary services which must include the cost of advice, where relevant, the cost of the financial instrument recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments”.
The attempts by the ECR Group to reverse the ban on the retail sale of related products were defeated. The EP says that “grouped sales” will be allowed, but not “related sales”.
During the debate in plenary on Tuesday, EU Internal Market Commissioner Michel Barnier welcomed the fact that MEPs had introduced greater consumer protection, such as a compulsory information document for non-life insurance products and additional powers for the European insurance watchdog, EIOPA. The directive has been extended to cover occasional sellers of insurance and insurance comparison websites, said Barnier, who hoped that, despite delays at the Council of Ministers, it would be possible for a final agreement to be reached by the end of the year. (MB)