Insurance Distribution: Council Delays Application of New Rules

BRUSSELS, Belgium, March 9 -- The Council of the European Union issued the following news release:

The Council has delayed the application of new rules on insurance distribution.

On 9 March 2018, it adopted a directive postponing the application date to 1 October 2018. The directive also extends to 1 July 2018 the deadline given to member states to transpose the new rules into national laws and regulations.

Directive 2016/97 is aimed at improving consumer protection for insurance products. Adopted in December 2015, it was due to apply from 23 February 2018 and member states initially had until then to transpose it.

The delay was decided in the light of implementing rules issued by the Commission in September 2017. The delay will enable the insurance industry to better prepare the changes necessary to comply with the implementing rules.

The implementing rules deal with:

* Product oversight and governance requirements for insurance companies and insurance distributors;

* Information requirements and other rules applicable to the distribution of insurance-based investment products.

The directive was adopted at a meeting of the Justice and Home Affairs Council, without discussion. This follows an agreement with the European Parliament. The Parliament approved the directive on 1 March 2018.