Date: 22nd August 2017
In 2016, the European Commission adopted the Insurance Distribution Directive (IDD) widening the Insurance Mediation Directive’s (IMD) scope with the aim of increasing transparency of price and costs of insurance products.
The new directive introduces a simple, standardized insurance product information document (IPID) which provides clearer information on non-life insurance products, so that consumers can make more informed decisions. The IDD also strengthens the rules on transparency and business conduct to help consumers avoid buying products that do not meet their needs.
On the 1st of February 2017, EIOPA published its technical advice (TA) for a possible Delegated Act for the implementation of the IDD. The European Commission released a draft Delegated Act in July 2017 based on EIOPA’s technical advice. As part of the Better Regulation framework, the European Commission launched a consultation requesting feedback from stakeholders and individuals. The Bund der Versicherten, member of BETTER FINANCE and BETTER FINANCE provided their feedback.
In its Press Release, the Bund der Versicherten declares that “the Commission softens EIOPA’s proposal and obviously inclines to the insurance industry”, pointing out two points in particular.
The first point stressed by the German organization is the question of conflicts of interest. Whereas EIOPA considers that monetary benefits intensify conflicts of interest, the European Commission had decided to remove this criterion from the list of criteria used to identify conflicts of interest.