Publication Of Proposed Text Of Insurance Mediation Directive II

Author:Ms Sharon Daly, Darren Maher and Helen Noble
Profession:Matheson Ormsby Prentice

The forthcoming implementation of the Solvency II Directive is one of the main drivers for the review of IMD I. In addition, IMD I is implemented differently across EU Member States such that:

EU insurance markets are fragmented; there are significant inconsistencies, in particular regarding the information requirements imposed on sellers of insurance products; and customers are more likely to misunderstand the risks, costs and features of insurance products. IMD II extends the scope of IMD I to apply to those selling insurance products, including insurance companies that sell directly to customers. A number of new rules have been proposed that address the risk of conflicts of interest, including a mandate for intermediaries to disclose the nature and structure of their remuneration. There are also a number of improved requirements which will apply to life insurance products that have investment elements. IMD II will...

To continue reading