Brussels, 13/11/2014 (Agence Europe) - European insurers are calling for a revision of the rules on insurance mediation which benefits consumers and remains acceptable to the industry.
Insurance Europe, the association of European insurance companies, has praised the “balanced” approach decided on by the member states in the political agreement in principle they recently reached on the proposed 'IMD 2' directive, which governs insurance mediation activities (EUROPE 11192). The transparency required over mediators' fees will allow consumers to make informed choices “without distracting them from other relevant information, such as the coverage and exclusions of their policies”, the organisation states in a press release.
On the other hand, Insurance Europe expressed disappointment that the Council's text does not bring the obligations on the disclosure of information to consumers under the 'insurance mediation directive' fully into line with those laid down in the 'PRIIPs' (Packaged Retail and Insurance-based Investment Products) regulation (EUROPE 11194). Although the Italian Presidency of the Council suggested an alignment of this kind in its fourth draft compromise, the text finally settled upon is less explicit (article 24). Insurance Europe argues that disparities of this kind would result in “unnecessary duplication of obligations for insurance and policyholders being presented with inconsistent information”.
The industry also welcomes the approach defended by the Council on cross-selling, which obliges insurers to inform their clients as to whether they can buy financial products related to their insurance policies separately from other service providers.
The political agreement in principle paves the way for inter-institutional negotiations between the Council of the EU and the European Parliament, which adopted its position in February (EUROPE 11028). (MB)