Abstract
AbstractDespite the European passport granted to insurance intermediaries by the Insurance Mediation Directive (IMD) in 2002, the single market for insurance distribution remained very fragmented. In 2016, in order to promote the emergence of a genuine Single Market in insurance services, the Insurance Distribution Directive (IDD) introduced new rules on cross border insurance distribution and new division of competence between home and host Member State authorities. However, it failed to provide the necessary legal clarity on when an insurance intermediary is likely to be pursuing cross-border activities. This chapter will explore whether the IDD, together with the 2018 Decision of EIOPA’s board of Supervisors, have led or will lead to more market integration. This chapter also briefly analyses the possible impact of ‘Brexit’, that is, the leaving of the EU by the United Kingdom, on cross-border activities of insurance intermediaries.
Highlights
The Insurance Distribution Directive (IDD1) came into force on 22 February 2016 and repealed the Insurance Mediation Directive (IMD2)
One of the key objectives of the IDD was to further facilitate cross-border activities of insurance intermediaries, promoting the emergence of a genuine Single Market in insurance services.3. This Chapter will present the new rules on the freedom to provide services (FOS) and freedom of establishment (FOE) introduced by Chapter III of the IDD and by EIOPA4 measures that apply to insurance intermediaries and ancillary intermediaries and will explain how they have partly simplified and clarified the procedure to
At the time of the trilogue, the Council of the EU had explained that the intention was here to strike a proper balance, taking inspiration from relevant legislative texts such as the Solvency II Directive and the Mortgage Credit Directive: “We considered that a proper solution aimed at enhancing consumer protection, while preserving a smooth functioning of the passport, might come from graduating competences and powers differently in the cases of freedom to provide services and freedom of
Summary
The Insurance Distribution Directive (IDD1) came into force on 22 February 2016 and repealed the Insurance Mediation Directive (IMD2). One of the key objectives of the IDD was to further facilitate cross-border activities of insurance intermediaries, promoting the emergence of a genuine Single Market in insurance services.3 This Chapter will present the new rules on the freedom to provide services (FOS) and freedom of establishment (FOE) introduced by Chapter III of the IDD and by EIOPA4 measures that apply to insurance intermediaries and ancillary intermediaries and will explain how they have partly simplified and clarified the procedure to. The restrictions by the general good provisions of EU Member States will be explained, on the basis of recent reports provided by the Commission and EIOPA It will detail the new division of competence between the home and host Member State competent authorities for ensuring intermediaries’ compliance with the IDD requirements (in particular in the context of the new concept of primary place of business and in other exceptional situations) and will explain how this new balance could impact intermediaries’ passporting rights. Part III will briefly analyse the impact of ‘Brexit’, that is, the leaving of the EU by the United Kingdom, on cross-border activities of insurance intermediaries
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