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

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 21/04/2017

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) 21/04/2017

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) 21/04/2017

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

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 21/04/2017

Thank you for your attention. Questions? Email: anna.kadar@ec.europa.eu 21/04/2017