Conservative MEPs have backed new rules designed to ensure clearer information and greater choice for consumers when buying insurance products.
The so-called Insurance Distribution Directive covers general insurance products, including car insurance and life insurance policies.
The directive takes a “minimum harmonisation” approach, meaning that existing practices in individual EU countries will be allowed to continue.
Consumers and retailers will be given enhanced information about the price and costs of products, and whether the insurance seller has an economic incentive or receives commission, so that an informed decision can be made.
The directive also brings in a new standardised product information document for non-life insurance documents. This was originally overly detailed and burdensome, however Conservative MEPs have succeeded in ensuring that the information required will be much less prescriptive than proposed.
Conservative Spokesman on Economic Affairs, Dr Kay Swinburne MEP commented: “This is yet another example of Conservative MEPs working to ensure that EU legislation is used to bring advantages to consumers, rather than simply create new burdens.”
