Local view for "http://purl.org/linkedpolitics/eu/plenary/2015-11-24-Speech-2-119-000"
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"en.20151124.4.2-119-000"2
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"Mr President, I would like to thank the rapporteur and shadows. The European insurance sector has trillions of euros worth of assets under its management, making it the backbone of our financial industry and an important contributor to GDP. The insurance distribution directive (IDD) is, along with Solvency II, just one piece of the puzzle of updated regulations aimed at strengthening European standards and encouraging cross-border purchases.
A patchwork of national regulations, with some governments gold-plating the measures and others implementing the bare minimum necessary for compliance, has been the case across Europe for some years now. However, the agreement reached on IDD includes substantial achievements in consumer protection, notably on information for consumers, a ban on time practices and the prevention of conflicts of interest.
This agreement includes substantial achievements in consumer protection, which was my priority and my group’s from the get-go. The implementation of this updated regulation will ensure consumers understand the risks, costs and features of all insurance products and that those selling them possess the relevant professionalism and competence.
Part of a review by the Commission in 2008 found that a lack of transparency around remuneration was resulting in too many Commission-driven conflicts of interest in the market. The new directive requires Member States to lay down rules ensuring the intermediaries, insurers and reinsurers do not remunerate or assess the performance of employees in a way that conflicts with their duty to act in the best interests of consumers. Also, before a contract is concluded, an intermediary must disclose to customers the nature and basis – such as a fee, commission, or combination thereof – of the remuneration. This is a huge increase in transparency for the consumer. Insurance and reinsurance distribution can be carried out by insurers and reinsurers as well as intermediaries. So the scope of this regulation has been widened to reflect that. But in specified circumstances, such as ancillary insurance intermediaries, those whose principal activities are not insurance related are excluded from the scope.
Another important achievement of IDD is ensuring that sellers’ professional qualifications match the complexity of the products they sell. Included in the directive is a requirement for at least 15 hours of professional training or development per year, although as part of our compromise with the Council, Member States may allow evidence of continuous training and development through successful completion of an exam.
Under the existing directive, there will be requirements to disclose information to customers before a contract is concluded. So to remain competitive, there is a need for innovation – particularly digital innovation – and this will ultimately lead to huge potential for the provision of cross-border insurance sales. The adoption of IDD is an important step towards this, and I look forward to Parliament endorsing it during the plenary session."@en1
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