On Thursday 21 September, the European Commission adopted new standards on the oversight and governance of insurance products, and on the application of the rules of conduct by vendors of life assurance products.
The new rules – adopted in the form of two delegated acts stemming from the directive on insurance distribution, which the member states must transpose by 23 February 2018 – “will, for the first time, oblige insurers to prioritise the interests of consumers when designing, developing and distributing all insurance products”, the institution states in a press release.
Proposals include new standards on the approvals process for new insurance products and the management of conflicts of interests, with which suppliers of insurance products must comply from 2018 onwards.
The rules clarify the information that vendors must gather from their customers before advising them, and the situations in which products may be sold without prior consultation.
The organisation Better Finance felt that the Commission's proposal reduced consumer protection compared to the technical opinion returned by the European Insurance and Occupational Pensions Authority in February (see EUROPE 11847).
These new rules now require the blessing of the European Parliament and Council before entering into force alongside the insurance distribution directive. The texts are available at http://bit.ly/2xpr97u. (Original version in French by Marion Fontana)