Brokers now face a five-year timetable to prepare for mandatory disclosure to clients
Biba today hit out at the European Commission’s revised plans to push through mandatory disclosure for general insurance brokers.
The Commission’s revised Insurance Mediation Directive (IMD II) wants mandatory disclosure from brokers.
The European Commission has set a five-year timetable for its implementation once the IMD is rubber-stamped by Brussels.
It means brokers will have to reveal to customers remuneration on a transaction, probably by 2019 at the latest.
Biba is demanding that insurers disclose details of remuneration when customers buy a policy direct, creating a “level playing field”.
Biba training and compliance head Steve White said: “We are pleased that the majority of points that we have made to the Commission have been taken on board in this text, but we still have major concerns in some areas.
“Our primary concern is around mandatory disclosure and where it is imperative from a European perspective that a level playing field is established with insurers when selling direct.”
Biba said it was “extremely concerned” that the Commission had ignored the views of Eiopa (the European Insurance and Occupational Pension Authority), HM Treasury, the Financial Services Authority and all the leading insurance broking representative bodies in Europe.
Biba chief executive Eric Galbraith said: “Biba alongside BIPAR (European Federation of Insurance and Financial Intermediaries), will in the coming months, continue to actively promote its detailed views during the final stages towards the definitive adoption of the Directive by the EU co-legislators, the European Parliament and the Council of Ministers.”
Biba said it was pleased that travel agents and price comparison sites were part of the directive. It means both industries will have to show greater transparency when selling products.
The IMD text now enters the European legislative process and is expected to be finalised and published in late 2013 or early 2014, with an implementation no later than two years after.
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