The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has published a letter to the European Commission containing an analysis of three different proposals for defining of cross-border services under the Insurance Mediation Directive (IMD). The proposals are:

  • Proposal 1 (Residence of Policyholder). An insurance intermediary is carrying out business under freedom of services (FOS) if the Member State (MS)in which it is established is different from the Member State where the recipient of its services (i.e. the consumer/ policyholder) is established.
  • Proposal 2 (Situation of the risk). An insurance intermediary (IIM) carries on business under FOS if the IIM is not established in the MS where the risk to be underwritten is located.
  • Proposal 3: (Definition). An IIM is operating under FOS if it intends to supply a policyholder, who is established in a MS different from the one where the IIM is established, with an insurance contract relating to a risk situated in a MS different from the MS where the IIM is established. The IIM should notify its intention to operate under FOS in the sole MS where the policyholder is established or has his residence, also in the case the policyholder acts on behalf of different insured and/or risks established or situated in one or more other MS. If the IIM already notified its intention to operate under FOS in a MS other than the one where the IIM has its residence, this notification procedure is considered as the legal proof of its intention to write business under FOS with residents of that MS. If the IIM did not notify its intention to operate under FOS in another MS, an intermediary shall nevertheless be considered as having the intention to write business under FOS with residents of that MS, when it is marketing, providing insurance mediation services or when it is actively seeking business from a client/consumer resident or established in that MS.

View CEIOPS proposals for a definition of cross-border provision of service under the IMD, (PDF 85.6KB), November 2007