1. Insurance Mediation Directive
Anna Kadar
Insurance and Pensions Unit
DG Internal Market and Services European Commission
21/04/2017

2. 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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3. 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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4. 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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5. 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
21/04/2017

6. 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
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7. Thank you for your attention.
Questions?
21/04/2017