New insurance rules come into force to protect consumers

New measures to guarantee customers receive the same level of consumer protection wherever in the EU they buy insurance have come into force.

The Insurance Distribution Directive sets out the information that must be provided to customers before they sign up to an insurance contract. It also lays down rules for insurance-based investment products.

Conservative MEPs helped secure changes to the original proposals to ensure member states can impose tougher rules if they wish.

MEP for South East England, Richard Ashworth, said: “The Insurance Distribution Directive will enhance consumer protection, increase competition and create a more level playing field between insurance and investment products.

“It will ensure that the same protections are available to individuals when they by an insurance product in the UK as elsewhere in Europe, no matter where the insurance broker is based.”

“Allowing Member States, such as the UK, to have the flexibility to implement tougher rules is a great example of the EU recognising where its law-making is useful and where Member States should be in charge.”

Member states now have two years to incorporate the new rules into national law

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