in association with
IIB’s “strong views”on
IMDreview T
he Institute of Insurance Brokers says that the Insurance Mediation Directive review, initiated by the EC, has stirred up the debate over transparency and conflicts of interest in general insurance, with mandatory up-front commission disclosure back in the mix. The Institute has responded to the consultation document, expressing “strong views” about disclosure. Ann Peel, IIB head of technical
services, says, “The case for mandatory up-front commission disclosure has not been made. Under UK agency law (and FSA rules for commercial customers) brokers are already obliged to disclose the amount of their remuneration on the client’s request, but very few buyers appear to be interested in anything but the overall price of their insurance.”
The Institute says that, although it is firmly against up-
front commission disclosure, it would support the development of an “on request” remuneration disclosure regime across Europe along the lines of the UK model, perhaps supplemented by guidance for firms on handling and disclosing conflicts of interest. However, Ann Peel warns, “There is a danger that presenting customers with a complex suite of disclosures at the point of sale might be counter- productive.”
Ann Peel
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MARCH 2011 insurancepeople 27
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