New Insurance Distribution Rules: Are you compliant?

New Insurance Distribution Rules: Are you compliant?

The Insurance Distribution Directive (“Directive”) will supersede the current Insurance Mediation Directive (“IMD”).

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Giselle Borg

Partner, Advisory Services

KPMG in Malta

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The Insurance Distribution Directive (“Directive”), which entered into force on 23 February 2016, will supersede the current Insurance Mediation Directive (“IMD”). The Directive seeks to:

  • ensure a minimum harmonization of the laws of the various European countries, without precluding Member States from maintaining or introducing more stringent provisions in order to protect customers;
  • improve retail insurance regulation by creating a level playing field between participants in insurance sales in order to improve consumer protection, market integration and competition;
  • extend the scope of application to all distribution channels and establish the conditions necessary for fair competition between distributors of insurance products;
  • guarantee that consumers benefit from the same level of protection despite the difference in distribution channels;
  • strengthen policyholder protection, particularly with regards to life insurance products withan investment element, and enhance the suitability and objectiveness of the insurance advice provided; and
  • strengthen the administrative sanctions and measures to be applied in the event of a breach of key provisions.

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