ACQUIRING COMPETENCE TO PROTECT THE CONSUMER
8-9th October 2015, Bucharest, Romania
The effects of european legal modifications on
professional education
The Insurance Distribution Directive (IDD)
Katharina Höhn & Matthias Stettler
IDD aims at
minimum
harmonisation
2
Member states may
maintain or introduce
more stringent
provisions in order to
protect consumers
1. Scope of application (1/4)
IDD has (as IMD Art 2 (3)) to be applied to natural and legal
persons who distribute insurance products
i.e. agents, brokers, banc assurance operators, insurance
undertakings, travel agencies, car rental companies
Insurance distribution means the acitvities of
– Proposing or carrying out other work preparatory to the conclusion of
contracts of insurance,
– Concluding such contracts
– Assisting in the administration and performance of such contracts, in
particular in the event of claim.
1. Scope of application (2/4)
Insurance distribution explicitly comprises activities of
Insurance companies including their employees (Art. 2 (3, 3a)
 no registration (Art. 3 (1))
 employees need to have the qualification and good repute as
defined by the home member state (Art. 8 (1, 2))
 web sites where customers can buy insurance
coverage directly
1. Scope of application (3/4)
Ancilliary intermediaries
do not distribute insurance as a main profession
only distribute insurance policies as an annex to
another product AND
the insurance product does not cover life risks or
liability risks – unless the coverage is only an
annex to the main product or service
1. Scope of application (4/4)
No insurance distribution when
mere introducing activities (contact between a
customer and an insurance distributor)
Professional claim handler
2. The core of professional requirement:
registration
Exceptions
» Insurance undertakings and their employees
» Ancilliary services
Tied agents
» Term is not defined explicitly any more in IDD
» Tied agents in the sense of art. 2 (7) IMD can still be registered by
insurance undertaking when insurance undertaking takes over
liablility and guarantees the requirements for registration.
2. Conditions of registration
good repute
professional
indemnity
insurance
qualification
information on
shareholders
2. Conditions of registration
Good repute – Art. 8 (2)
2. Conditions of registration:
professional indemnity insurance (Art. 8 (3))
2. Conditions of registration:
information on shareholders (new)
The following information of insurance distributors are requested in
the future additionally (Art. 3 (7):
Qualification in IDD
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2. Conditions of registration:
minimum qualification
 Non-life
 Life
 Insurancebased
investmentproducts
2. Conditions of registration:
continuing training and development (1/3)
2. Conditions of registration:
continuing training and development (2/3)
2. Conditions of registration:
continuing training and development (3/3)
Link to IDD
http://data.consilium.europa.eu/doc/document/ST-10747-2015-INIT/en/pdf