European trade bodies express satisfaction at Parliament’s ruling on insurance mediation – with caveats

The European Parliament’s Economic and Monetary Affairs (ECON) Committee, the lead committee on the revision of the Insurance Mediation Directive, has adopted its report on the European Commission’s (EC) Proposal.

Eurofinas and Leaseurope both welcome the fact that the Parliament has maintained a differentiated approach between the different distribution channels, as proposed by the EC, providing for a simplified declaration procedure for ancillary insurance intermediaries.

Eurofinas’ and Leaseurope’s director general Tanguy van de Werve explained:  “The European Parliament has agreed to a solution that ensures that ancillary insurance intermediaries are subject to a proportionate framework.

“A one-size-fits-all approach would have been detrimental to the offering of affordable and commonly-used insurance products that consumers use and value. The differentiated approach provides ancillary intermediaries, such as retailers and motor dealers distributing insurance products at the point of sale, with a regulatory framework which is well balanced considering their core activity and the cost, risk and simplicity of the products they distribute.”

Van de Werve added that a number of issues are still to be resolved in future negotiations between the Parliament and the council in order to achieve greater harmonisation across Europe as well as a workable framework for all intermediaries.

“We are particularly concerned by the envisaged new stringent and time-consuming training requirements for staff of intermediaries. Despite the differentiated approach, a number of intermediaries distributing simple insurance products at the point of sale may be subject to the new requirements. This is not only excessive but also unnecessary in terms of consumer protection. It can only lead to less choice and less convenience for consumers at the point of sale” he said.