Agreement has been reached on the text of the revised Insurance Mediation Directive (or Insurance Distribution Directive as it will be known). A compromise text which has been agreed between the trialogue bodies of the EU was published on 16 July 2015. The text remains largely the same as the text published by the European presidency back in October last year. However, the compromise text now includes the requirement to have a short, stand-alone ‘product information document’ that resembles the ‘key information document’ required by the Packaged Retail and Insurance-based Investment Products Regulation (1286/2014), or ‘PRIIPS’.
The product information document should be presented and laid out in a manner that is clear and easy to read and should contain the following: the means for payment of premium; the main exclusions in the policy; obligations relevant to the commencement and duration of the contract; obligations on making a claim; the term of the contract and the means of termination.
Consumers in the UK will be accustomed to reading such product information documents. The ICOBS rules already require UK insurers to provide information to the customer (including concerning key exclusions and significant features and benefits) before the contract is concluded.
For our 5 minute guide to the Insurance Distribution Directive please read: The Insurance Distribution Directive – 10 things to know about the proposals so far.