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BackAn AK Study on mediation commissions clearly shows the requirement of improved consumer protection with regard to the planned amendment of the Insurance Mediation Directive. A lack of information and intransparency is not the exception but the rule.
On the occasion of the planned amendment of the Insurance Mediation Directive (IMD2), the AK is able to present a Europe-wide survey, which focusses on the transparency of the remuneration of the insurance mediator. The Directive shall be voted on next week in the plenum of the European Parliament.
During conducting the AK Study, identical enquires (so-called “mystery shopping” via Internet) asking for a non-binding quotation for a life insurance were sent to various providers (brokers, banks, insurance companies) in eleven Member States. It was the objective of this online survey to determine the costs of mediation (commissions, fees) and to assess the quality of the information provided. The result in respect of the information quality of the quotation, which the AK test buyers were provided with, was sobering. In many cases, product information was provided, which was difficult to compare with other products, details about costs were almost always poor and varied tremendously. Apart from that, there was hardly any information given on fees. Questions on remuneration were hardly answered, whereby replies in most cases were not very forthcoming. Details on costs also proved to be little comprehensible.
All in all, the AK survey demonstrates how urgently required the mandatory disclosure of commissions (remuneration) and other costs is. Only once this has been achieved, hidden costs will be transparent. For this reason, the AK demands a Europe-wide standardisation and disclosure of costs and other important product details by means of a product information sheet (including all types of endowment life insurance).
The AK also demands a wide scope for the Insurance Mediation Directive. It should be ensured that all important distribution channels for insurances (for example automobile insurance by car rentals, credit card insurance or travel insurances by travel agents) are also included in the Directive.
The vote on the Payment Services Directive (PSD 2) took place on 20.2.2014 in the Economic Committee. The vote in the plenum has been scheduled for April. From the point of view of the AK, those Member States, which want a more favourable implementation for consumers, must be given the vote.
More Information:
AK Position Paper
AK Study abridged version
During conducting the AK Study, identical enquires (so-called “mystery shopping” via Internet) asking for a non-binding quotation for a life insurance were sent to various providers (brokers, banks, insurance companies) in eleven Member States. It was the objective of this online survey to determine the costs of mediation (commissions, fees) and to assess the quality of the information provided. The result in respect of the information quality of the quotation, which the AK test buyers were provided with, was sobering. In many cases, product information was provided, which was difficult to compare with other products, details about costs were almost always poor and varied tremendously. Apart from that, there was hardly any information given on fees. Questions on remuneration were hardly answered, whereby replies in most cases were not very forthcoming. Details on costs also proved to be little comprehensible.
All in all, the AK survey demonstrates how urgently required the mandatory disclosure of commissions (remuneration) and other costs is. Only once this has been achieved, hidden costs will be transparent. For this reason, the AK demands a Europe-wide standardisation and disclosure of costs and other important product details by means of a product information sheet (including all types of endowment life insurance).
The AK also demands a wide scope for the Insurance Mediation Directive. It should be ensured that all important distribution channels for insurances (for example automobile insurance by car rentals, credit card insurance or travel insurances by travel agents) are also included in the Directive.
The vote on the Payment Services Directive (PSD 2) took place on 20.2.2014 in the Economic Committee. The vote in the plenum has been scheduled for April. From the point of view of the AK, those Member States, which want a more favourable implementation for consumers, must be given the vote.
More Information:
AK Position Paper
AK Study abridged version