The effects of european legal modifications on professional education

The Insurance Distribution Directive (IDD)

ACQUIRING COMPETENCE TO PROTECT THE CONSUMER

8-9th October 2015, Bucharest, Romania

Katharina Höhn & Matthias Stettler

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1. Scope of application (1/4)

IDD has (as IMD Art 2 (3)) to be applied to natural and legal persons who distribute insurance products

i.e. agents, brokers, banc assurance operators, insurance undertakings, travel agencies, car rental companies

Insurance distribution means the acitvities of– Proposing or carrying out other work preparatory to the conclusion of

contracts of insurance,– Concluding such contracts– Assisting in the administration and performance of such contracts, in

particular in the event of claim.

Insurance distribution explicitly comprises activities of

Insurance companies including their employees (Art. 2 (3, 3a) no registration (Art. 3 (1)) employees need to have the qualification and good repute as

defined by the home member state (Art. 8 (1, 2))

web sites where customers can buy insurance coverage directly

1. Scope of application (2/4)

Ancilliary intermediaries

do not distribute insurance as a main profession

only distribute insurance policies as an annex to another product AND

the insurance product does not cover life risks or liability risks – unless the coverage is only an annex to the main product or service

1. Scope of application (3/4)

No insurance distribution when

mere introducing activities (contact between a customer and an insurance distributor)

Professional claim handler

1. Scope of application (4/4)

2. The core of professional requirement:registration

Exceptions» Insurance undertakings and their employees

» Ancilliary services

Tied agents» Term is not defined explicitly any more in IDD

» Tied agents in the sense of art. 2 (7) IMD can still be registered by insurance undertaking when insurance undertaking takes over liablility and guarantees the requirements for registration.

2. Conditions of registration

professional indemnity insurance

good repute

qualification information on shareholders

2. Conditions of registration

Good repute – Art. 8 (2)

2. Conditions of registration:professional indemnity insurance (Art. 8 (3))

2. Conditions of registration:information on shareholders (new)

The following information of insurance distributors are requested in the future additionally (Art. 3 (7):

Qualification in IDD

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2. Conditions of registration:minimum qualification

Non-life

Life

Insurance-based investment-products

2. Conditions of registration:continuing training and development (1/3)

2. Conditions of registration:continuing training and development (2/3)

2. Conditions of registration:continuing training and development (3/3)

Link to IDD

http://data.consilium.europa.eu/doc/document/ST-10747-2015-INIT/en/pdf