Changes of insurance intermediares regulation in the EU countries

Abstract

This paper describes the changes, which were made in recent years to the regulation of insurance intermediaries in the EU countries. The Insurance Distribution Directive (IDD) came into force on 22 February 2016 and updates the 2002 Insurance Mediation Directive (IMD), applies to the wider regulation of insurance “distributors” in comparison with IMD. The IDD has a wide scope of application, applying to all sellers of insurance products, anyone who assists in the administration and performance of insurance contracts and ancillary insurance intermediaries. Member States have two years to transpose the IDD into national laws and regulations, which should provide for significant changes in practices of selling insurance products and guarantee enhanced level of consumer protection. The aim of article is reveal the problem areas of IDD implementation in order to escape infringements. To achieve the aim of article, there were used the following approaches: systematic and logical analysis, generalization, analysis of documents, qualitative content analysis, empirical data collection and systematisation. Conclusions of article are as following: agents and brokers are the main non-life distribution channels, and banc-assurance is one of the main life distribution channels, insurance intermediaries foster competition in the local and the EU insurance market, diversity of channels, which makes it possible for insurers to adjust to differing cultures, needs and preferences in different markets, is in the interest of consumers, effective implementation of new Insurance Distribution Directive will help to make changes in organisation, professional requirements, remuneration and forecasting the challenges.