The European Commission has published a proposed directive to replace the current Insurance Mediation Directive. Known as IMD 2 , the proposed directive seeks to improve the regulation of the retail insurance market and create a level playing field in relation to the sale of insurance products.
IMD 2 extends the scope of the existing directive to apply to those selling insurance products, including insurance companies that sell directly to customers. A number of new rules have been proposed that address the risk of conflicts of interest, including a mandate for intermediaries to disclose their remuneration. There are also a number of improved requirements which will apply to life insurance products that have investment elements. IMD 2 also proposes the establishment of a single EU registry for insurance intermediaries who wish to provide cross-border services.
The European Commission has indicated that the European Parliament and the Council of the European Union are likely to adopt IMD 2 during 2013. Once it has been adopted work on the level 2 implementing measures will begin. It is expected to come into force in 2015.