European Commission Vice President Valdis Dombrovskis expressed his appreciation to  Maltese MEP Alfred Sant for his engagement in the postponement of the Insurance Distribution Directive. The Maltese MEP had asked the European Commission to reconsider the application of a one-year delay for the implementation of the Insurance Distribution Directive  as requested by the Maltese industry.

The Maltese insurance industry had specifically asked the Maltese MEP to raise their concerns with the EC regarding the lack of time given to the insurance industry for the implementation of the Insurance Directive and postpone the 23 February 2018 deadline to a later date. The Commission accepted Dr Sant’s proposal and postponed the Insurance Directive until 1 October 2018.

“In a country like Malta, where I come from, most of the insurance intermediaries are small or micro entities. For them, the changes prospected will give rise to considerable burdens. The Insurance Distribution Directive will bring widespread changes to the sector of mainly small and medium operators. Its implementation timeline is simply not realistic,” the Maltese MEP had alerted the European Commission.

“Your observations as well as numerous contacts with stakeholders made me aware of the fact that parts of the insurance industry had - in spite of the readily available information - not yet made sufficient preparations for the application of the new legal framework. This is particularly true for small insurance companies and insurance distributors which do not have the necessary organisational resources.” Valdis Dombrovskis told Dr Sant in a letter dated 14 March 2018.

Dombrovskis told the Maltese MEP that he is well aware that an appropriate preparation and implementation by insurance distributors is key for the attainment of the consumer protection goals pursued by the Directive.

Letter