Published 14 February 2006
February 2006
To EEA-based Intermediaries
Dear Sirs,
Insurance Mediation Directive (IMD)
To all EEA-based brokers and other insurance intermediaries (including entered thru’s),
The European Union Insurance Mediation Directive (2002/92/EC) has come into force in Norway on 1 January 2006. In order to implement the terms of the Directive, Member States within the European Economic Area (“EEA”) have introduced, or are in the process of introducing, enacting legislation.
Brokers and any other third party introducing insurance business to an insurer (“Intermediaries”) based in the EEA will no doubt be considering their obligations under the IMD and where appropriate be seeking permission or a variation of an existing authorisation to carry out Insurance Intermediary Activities.
The IMD imposes an obligation on all regulated insurers within the EEA to ensure that those from whom they accept business on behalf of principals (including Intermediaries regulated in other EEA countries) are authorised under the IMD. Assuranceforeningen Gard is a regulated insurer and is therefore required under the legislation implementing the IMD to ensure that any Intermediary it accepts business from is appropriately authorised.
Within the next few days we shall be sending a Circular on the IMD to our Members (a copy is attached) and other regulated Clubs in the International Group have already or will be sending similar Circulars so that a uniform approach is achieved to ensure that Intermediaries with which those Clubs deal are IMD compliant. The Circular will set out the requirement that Intermediaries based in the EEA introducing business will be required to confirm that they are IMD authorised in their relevant country and that, where necessary, they have freedom of services authorisation.
The Clubs suggest in the Circular that the following wording be incorporated in underwriting renewal/new business documentation in order to confirm that a broker or other insurance intermediary is IMD/freedom of services authorised. A certificate in the relevant wording will require to be incorporated in all quotation acceptances with effect from 20.02 2006.
For Intermediaries regulated in the EEA and introducing EEA business the proposed wording is:
"(Name of Intermediary) is registered for the Insurance Mediation Directive (“IMD”) purposes with (Name of Regulator) in (Country of Regulation), and will advise you of any change in that status."
If you have any questions, please contact Kjetil Eivindstad, Senior Vice President, in Gard AS.
Yours faithfully, GARD AS as agent only for Assuranceforeningen Gard –gjensidig-
Claes Isacson Chief Executive Officer
Gard is a member of
