|
Less insurance, more security
The Member States of the European Union require insurance intermediaries to have professional liability insurance of at least EUR 1,250,000 for each individual claim and EUR 1,850,000 for all claims in a year. This is what the EU Insurance Distribution Directive (IDD) requires. The aim of the European legislator is to protect consumers against the consequences of possible incorrect advice from insurance intermediaries. In practice, however, it has been shown that this regulation is excessive and also has errors that can even have a disadvantageous effect on consumers. FECIF is therefore taking the current revision of the IDD as an opportunity to propose changes.
AFPA, the Austrian partner association of FECIF, recently presented exact figures on the situation relating to professional liability insurance in Austria. In just 0.08% of all business cases involving insurance intermediaries, there are complaints from customers which lead to a court case. The value in dispute before Austrian courts is between EUR 40,000 and 60,000 on average. The comparison within the European partner associations of FECIF shows that the situation is similar in many EU countries. Against this background, the EU-wide minimum sum insured of EUR 1.25 million per claim and EUR 1.85 million for all claims in one year is oversized and unnecessary. In practice, insurance intermediaries in the EU pay too much in premiums for unnecessary insurance cover.
On the other hand, the limitation of insurance coverage to a maximum of...
|
