Page 8 - BIPAR Annual Report 2020_EN

in the context of the proper functioning of the IDD and of the BIPAR monitoring of IDD implementation Under EIOPA’s interpretation, an intermediary is not
internal market. This report was published on 30 July 2019. operating under FOS if the intermediary:
The report is accompanied by a country-by-country analysis. The IDD is a key text for the insurance distribution sector.
BIPAR is monitoring its implementation (levels 1, 2 and 3) in - is registered in the same Member State as the
- As a follow-up to the publication of the report, EIOPA the EU Member States very carefully. It will produce by he policyholder’s residence or establishment;
launched in September 2019 a brief consultation for external end of the year the two following documents:
stakeholders including BIPAR to gather input on the report - is registered in the same Member State where the
in general and, in particular, on any general good provisions - A comparative table on IDD key requirements as risk is situated; or
which stakeholders consider to be disproportionate with implemented in the EU (+ UK)
regard to consumer protection and have an adverse impact - has no intention to carry out cross-border business.
on cross-border business activities. It its response to EIPOA - A detailed description of the IDD implementation
consultation, BIPAR explained that most of the EU Member country by country in the EU (+ UK) One of the objectives of the IDD was to clarify intermediaries’
States implemented the IDD only at the end of 2018, it is FOS. However, this was not defined in the IDD. BIPAR
therefore too early to be able to clearly assess such an Revision of EIOPA Luxembourg Protocol believes that it is important for the sake of legal certainty to
impact. More time and hindsight are needed to have a have a clear description of the triggering element of the FOS
correct understanding on how the national general good In September 2018, EIOPA adopted the revised version of activities of an intermediary because general good rules and
rules listed by EIOPA in its report can have an adverse effect its Luxembourg Protocol on the cooperation of national stricter information requirements of the host Member State
on intermediaries’ cross border activities. However, while we competent authorities (NCAs) with regard to the IDD, now may have to be complied with by an intermediary when he/
understand their main objective which is the protection of in the format of a Decision of EIOPA’s Board of Supervisors she is considered as carrying out FOS in that Member State.
consumers, we tend to agree with EIOPA that the quantity (BoS) which is binding on the authorities represented in the
and diversity of information requirements contained in the BoS.
general good rules “can present significant challenges for
entities seeking to carry out cross-border business in terms EIOPA revised its Luxembourg Protocol in the light of the BIPAR handbook on Cross-Border Insurance
of additional entry costs”. This is an issue which could make new provisions of the IDD. BIPAR was consulted informally Distribution by Insurance Intermediaries in the
a failure of the IDD. It must be repeated here that extensive Other reports/works to be carried out by EIOPA on the revision of the Luxembourg Protocol and informed EU
application of local conduct of business rules may seriously EIOPA in particular on the importance of keeping the
undermine the objectives of the Single Market for insurance - According to IDD Article 41, by 23 February 2020 clarifications the Protocol contains on the triggering element The IDD changes how insurance intermediaries operate
mediation. EIOPA had to prepare a report on the application of the IDD of insurance intermediaries’ cross-border activities. BIPAR is across the borders of the EU Member States. Based on our
and by 23 February 2021, the Commission has to submit therefore pleased that these clarifications were maintained own continuous work on this topic, BIPAR appreciates its
- Under the IDD, Article 3.4, EIOPA must establish and a report on the application of IDD Article 1 and to review in EIOPA’s Decision. These clarifications that BIPAR helped the importance for insurance intermediaries in the EU and in
publish on its website and keep up to date a single electronic the IDD. Because of the late adoption of the Directive Commission and CEIOPS (now EIOPA) to develop in 2007, have order to provide insurance intermediaries with updated
register containing records of insurance, reinsurance and and then the Covid-19 crisis, these reports have been very important ramifications for our sector and it is anticipated and practical information, it commissioned the Brussels
ancillary insurance intermediaries which have notified their postponed. EIOPA report is now expected by Q4 2021 and that they will continue to be heavily relied upon by insurance office of Steptoe & Johnson LLP to draw up a Handbook
intention to carry on cross border business in accordance the Commission ones by mid-2022 at the earliest. However, intermediaries when carrying out cross-border activities. on Cross-Border Insurance Distribution by Insurance
with the IDD. This information is now available on the EIOPA EIOPA has started some data gathering on its application Intermediaries in the EU.
website. report already with its Members and hope to get first set
of results by end of May. They may carry out an evidence-
- In December 2018, EIOPA published a report on gathering exercise with stakeholders later in the year.
the “Evaluation of the Structure of Insurance Intermediaries
Markets in Europe” in accordance with Article 41(5) of the IDD - Possible EIOPA Guidelines for the assessment and
(please click here for the report and here for the annex). This the supervision of cross-selling practices (Article 24.4)
report provides an overview of the status of the European
intermediaries markets up to 31 December 2017, relating to - EIOPA annual report on all national administrative
data for the period from 2013 to 2017. measures or sanctions

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