IMD Proposal

A revision of the Insurance Mediation Directive is proposed with a view to raising standards. The revision is part of a package of three changes issued by the European Commission – see the separate articles in this Regulatory Roundup on ‘UCITS V’ and ‘PRIPs’.

The remit of the IMD will be expanded so that it will not only apply to insurance brokers and agents but also to insurance companies that sell direct to consumers.

Changes will include the need to disclose to a customer the basis of remuneration, fee or commission, as well as details of any agreed targets between the insurer and the intermediary and the amounts payable on the achievement of them. It is expected that the amended IMD will come into force in 2015.