European insurers are facing a more complex regulatory environment from national, regional and superregional authorities. The approaching date for implementation of Solvency II, January 1, 2016, is taking center stage. Member states are expected to transpose the directive requirements into local requirements with equivalence decisions this year.
The upcoming Insurance Mediation Directive (IMD2), issued by the European Commission, aims to ensure professionalism and competence among insurance intermediaries with minimum professional requirements such as appropriate knowledge of markets and products, good reputation, professional indemnity insurance and sufficient financial capacities to protect customers. The overall goal at the end is the protection of customers’ interests. Insurance intermediaries need to provide clear explanations to customers on the advice given.
The objective of the new European Data Protection rules is to give individuals control over their personal data, and to simplify the regulatory environment for business activities. Every day, individuals, firms and public authorities transfer personal data across borders. Conflicting data protection rules in different countries would disrupt international exchanges. Individuals might also be unwilling to transfer personal data abroad if they were uncertain about the level of protection in other countries. Common European Union (EU) Data Protection rules will be established to ensure that personal data enjoys a high standard of protection everywhere in the EU.
Currently, there is much industry discussion with the European Insurance and Occupational Pensions Authority to identify risk factors that reflect the strategic and long-term nature of infrastructure investments in a more accurate way.