Towards binding EU legislation on insurance mediation

1
Towards binding EU legislation on insurance
mediation

• By Harald Krauss
• Director BIPAR
• Polish Brokers Conference
• 23-26 May 2002
• Mikolajki, Poland

BIPAR
2
BIPARBureau International des Producteurs
dAssurances et de Réassurances

• Set up in 1937
• Founding President Joseph Grzybowski
• 42 national associations
• 27 countries
• 100,000 insurance intermediaries
• Task Force Central and Eastern Europe

BIPAR
3
MARKET SHARES OF THE VARIOUS INSURANCE
DISTRIBUTION CHANNELS IN SOME COUNTRIES OF THE EU
()
Statistics 2000
4
(No Transcript)
5
EU Directive on insurance medidation

• Acquis communautaire
• Adoption expected mid-June

BIPAR
6
Single LicenseInsurance companies
YESInsurance intermediaries NO
I want the potential of the Internal Market to
be unlocked for consumers. The Commission must
lead the drive for an Internal Market that
delivers for the consumer in terms of choice,
quality and value-for-money, above all in the
area of financial services. Romano Prodi,
President of the European Commission
BIPAR
7
Practical consequence

• An insurance intermediary established in Member
  State A wishing to do business in Member State B
• has
• to comply with the law and regulations of both A
  and B

BIPAR
8
Main objectives

• Single Market for intermediaries
• Reinforce consumer protection

BIPAR
9
New rules

• 1) Scope
• any person or corporate entity transacting the
  activity of insurance mediation, whether acting
  as a sole trader, partnership or as a firm.

BIPAR
10
Licensing requirements

• 2) Adequate general knowledge and ability
• 3) PI cover
• 4) Financial capacity
• 5) Good repute /no bankruptcy
• 6) Sanctions

BIPAR
11
Information requirements(not for large risks)

• Position of the intermediary on a case by case
  basis, the intermediary should disclose his
  position
• Reason why ?
• In writing
• Amount of commission ?

BIPAR
12
Schedule15/4/02 Start of EP proceedingJune
or July EP Plenary SessionAutumn (if
necessary) conciliation procedureImplementation
period 2 years
BIPAR
13
EU Commissioner BolkesteinKey text for a truly
Single Market for Insurance
BIPAR
14
Towards binding EU legislation on insurance
mediation

• By Harald Krauss
• Polish Brokers Conference
• 23-26 May 2002
• Mikolajki, Poland

BIPAR