European Council adopts insurance distribution rules
Thursday, 12 17 2015, Category: Insurance and Reinsurance, Country: Europe
The European Council has adopted a directive establishing new rules on insurance distribution designed to enhance consumer protection for insurance products.
The directive aims to improve retail insurance regulation for simplifying market integration; and establish the required conditions for fair competition between distributors of insurance products.
It also seeks to strengthen policyholder protection with respect to life insurance products of an investment element.
The new directive intends to identify, manage and mitigate conflicts of interest; strengthen administrative sanctions, as well as measures to improve the suitability and objectiveness of insurance advice.
Source: Insurance Business Review