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The International Insurance Mediation Conference 2011
IMD 2
Challenges & changes
Dieter Pscheidl
Representative to the European Union
Austrian Insurance Association (VVO)
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Disclaimer
This presentation reflects European developments
and does not constitute an official position
of the Austrian Insurance Association (VVO).
Check against delivery.
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Agenda
1. Starting point
2. Issues for reform
3. The way forward
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Directive on insurance mediation (2002/92/EC)
 creation of a Single Market for insurance mediation
- professional qualifications
- register
- information duties
- liabilities and professional indemnity insurance
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Agenda
1. Starting point
2. Issues for reform
3. The way forward
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Michel Barnier, EU Commissioner Internal Market & Services
Quality of information
 insufficient
Intermediaries‘ remuneration &
dual role of the broker
 conflict of interest
scope of application
 legal uncertainty
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Definition: What is insurance mediation?
(a) introducing,proposing or carrying out
other work preparatory to the conclusion
of contracts of insurance, or
presale
(b) concluding such contracts, or
sale
(c) assisting in the administration and
performance of such contracts,
in particular in the event of a claim.
aftersale
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Scope: Who‘s in? Who‘s out?
 Direct sales?
 Occupational pension products?
 Large risk insurance products?
 Websites?
 Reinsurance brokers?
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Remuneration: conflicts of interest?
 „Sales without advice“ for insurance products?
 Commissions for agents and brokers?
 Disclosure of remuneration (upon request)
or reduction in yield?
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
Agenda
1. Starting point
2. Issues for reform
3. The way forward
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Legislative timetable
2011
Public Consultation (until February 2011)
Proposal for a Directive by the European
Commission (expected by December 2011)
2012/13
Co-decision by Parliament and Council
National transposition in the Member States
2014/15
Dieter Pscheidl, VVO
New regime comes into force
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Thank you !
Further information: [email protected]
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes
Potential structure of the future IMD 2
PILLAR I
PILLAR II
PILLAR III
Acces to activity
of insurance
intermediation
_______________________
Intermediation & sales
of insurance non-PRIPs
Intermediation & sales
of insurance PRIPs
_______________________
_______________________
Conduct and information
rules based upon IMD I
Conduct and information
rules (reference point: MiFID)
- Register
- Professional knowledge
- Professional indemnity
insurance
+ Demands and Needs
+ Definition of advice?
+ More conflict of interest
management via
disclosures?
+ Rewording of exceptions?
+ Remuneration disclosure
upon request
+ Transparency
+ Introduction of FOS and
FOE definition
+ Conflict of interests
+ Advised / non-advised sales
+ Conditions for Member
States to require more
+ KIID
+ Notification
+ General good rules
Dieter Pscheidl, VVO
Istanbul, 28 March 2011
IMD 2: Challenges & Changes