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”).

Giselle Borg

Partner, Advisory Services

KPMG in Malta

papers stacked on table

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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