The Insurance Mediation Directive

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The Insurance Mediation Directive
3. June, 2005

Jeffrey Manners Marsh Europe S.A.
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AGENDA

• INTRODUCTION
• MARSH
• BIPAR
• OBJECTIVES OF IMD
• CURRENT STATUS
• THE FUTURE

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INTRODUCTION

• MARSH
• World leading risk and insurance firm
• 30,000 employees in over 100 countries
• Unit of MMC
• BIPAR
• Founded in 1937
• European Federation of Insurance Intermediaries
• Non-profit professional organization

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INTRODUCTION

• Membership in 44 national associations from 28
  countries
• 80,000 agents and brokers, employing 250,000
  people
• recognized by the EU, as the official voice of
  insurance intermediaries

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OBJECTIVES OF IMD

• CONSUMER PROTECTION
• Minimum standard of
• professional qualifications
• good repute
• professional indemnity coverage
• financial capacity
• Information to the clients on
• relationship with insurance companies
• reasons underlying advice
• written form before concluding contract
• Exceptions...

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CURREN STATUS OF IMD

• SCOPE OF IMD
• Activity based definition
• IMPLEMENTATION
• 11 MEMBERS (Austria, Czech Republic, Denmark,
  Estonia, Hungary, Slovenia, Lithuania, Malta,
  Cyprus, Ireland, UK)
• Germany, France and Portugal will be late
• EU Commission Actions

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THE FUTURE ?

• EVOLUTION NOT REVOLUTION
• NON-LEGAL BARRIERS TO F.O.S.
• Existing networks
• local service requires local knowledge (language,
  customs, laws, personal relationships, trust)
• lack of willingness of insurers
• risks and legal uncertainties

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THE FUTURE ?

• NON-LEGAL BARRIERS TO F.O.E.
• Cost
• Risks
• MORE HOMOGENITY ?
• Set of minimum standards
• Strength of local practice

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