The changing landscape for insurance intermediaries : the Insurance Distribution Directive

Abstract

Legislations and regulations concerning financial services are constantly developing and improving on any preceding directives with the sole aim of achieving the highest level of professionalism within the industry. This research project concerns the business of insurance, and can be seen as a discussion on the transition from the Insurance Mediation Directive to the Insurance Distribution Directive. Beginning with a general overview of the history and development from the Insurance Mediation directive to the Insurance Distribution Directive, the first Chapter addresses those parties who shall be affected by the change in the Directive, and those who are excluded from it. This research project further examines the essential advances and modifications that can be found in the Insurance Distribution Directive, together with various requirements which the various market players in the insurance field must address and adhere to. The third chapter of this research project focuses on the consumer’s perspective and how the new Directive shall enhance consumer protection within the industry. The final chapter deals with a local insurance broker’s perspective, where an in depth questionnaire was carried out to investigate how the new requirements in the directive shall affect the day to day activities of a local broker in Malta, and how the MFSA shall incorporate such Directive into local legislation.