The Economic and Monetary Affairs Committee (ECON) in EP has published a working document on the proposals to review the Insurance Mediation Directive (IMD2). It raises the following contentious questions:
- the industry has opposed a simplified registration procedure for insurance mediation when conducted as ancillary activity, for example in the case of travel agents and car rental companies, as this could create an unlevel playing field;
- the administrative burden of disclosing the basis and amount of remuneration could outweigh the likely benefit to customers; and
- a system based purely on fees paid by customers can lead to a shortfall in supply of advice – and, where insurance products are PRIPs under the Commission’s proposals, this could become a problem.
(Source: Working Document on IMD2)