Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

IMD 2 Challenges & changes

Dieter Pscheidl

Representative to the European Union Austrian Insurance Association (VVO)

The International Insurance Mediation Conference 2011

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

This presentation reflects European developments and does not constitute an official position

of the Austrian Insurance Association (VVO).

Check against delivery.

Disclaimer

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

1. Starting point

2. Issues for reform

3. The way forward

Agenda

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

creation of a Single Market for insurance mediation

- professional qualifications

- register

- information duties

- liabilities and professional indemnity insurance

Directive on insurance mediation (2002/92/EC)

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

1. Starting point

2. Issues for reform

3. The way forward

Agenda

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

Quality of information insufficient

Intermediaries‘ remuneration & dual role of the broker

conflict of interest

scope of application legal uncertainty

Michel Barnier, EU Commissioner Internal Market & Services

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

(a) introducing,proposing or carrying out other work preparatory to the conclusion of contracts of insurance, or

(b) concluding such contracts, or

(c) assisting in the administration and performance of such contracts, in particular in the event of a claim.

Definition: What is insurance mediation?

sale

aftersale

presale

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

Direct sales?

Occupational pension products?

Large risk insurance products?

Websites?

Reinsurance brokers?

Scope: Who‘s in? Who‘s out?

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

„Sales without advice“ for insurance products?

Commissions for agents and brokers?

Disclosure of remuneration (upon request)

or reduction in yield?

Remuneration: conflicts of interest?

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

National distribution reforms: fee based remuneration

„Northern wind“

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

1. Starting point

2. Issues for reform

3. The way forward

Agenda

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

Legislative timetable

2011

2012/13

Proposal for a Directive by the European Commission (expected by December 2011)

Co-decision by Parliament and Council

National transposition in the Member States New regime comes into force

Public Consultation (until February 2011)

2014/15

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

Thank you !

Further information: dieter.pscheidl@vvo.at

Dieter Pscheidl, VVO Istanbul, 28 March 2011 IMD 2: Challenges & Changes

PILLAR I

Acces to activity of insurance

intermediation_______________________

- Register- Professional knowledge- Professional indemnity

insurance

+ Definition of advice?

+ Rewording of exceptions?

+ Introduction of FOS and FOE definition

+ Notification

+ General good rules

PILLAR II

Intermediation & sales of insurance non-PRIPs

_______________________

Conduct and information rules based upon IMD I

+ More conflict of interest management via disclosures?

+ Remuneration disclosure upon request

+ Conditions for Member States to require more

PILLAR III

Intermediation & sales of insurance PRIPs

_______________________

Conduct and information rules (reference point: MiFID)

+ Demands and Needs

+ Conflict of interests

+ Transparency

+ Advised / non-advised sales

+ KIID

Potential structure of the future IMD 2