FINANCIAL SERVICES : INSURANCE REFORM: MEPS EXPECTED TO VOTE LATE JANUARY.

After months of delays, the vote on a report by Werner Langen (EPP, Germany) in the European Parliament's Committee on Economic and Monetary Affairs (ECON) on insurance reform is expected to take place at the end of January after months of delays. This reform that aimsato improve policy-holder protection has been controversial among the political groups.

In July 2012, the European Commission proposed a review of Directive 2002/92/EC on insurance mediation (IMD) to reinforce the protection of consumers of insurance products. Overall, this directive regulates selling practices of insurance products (such as house insurances but also life insurance products).

According to several sources, the remaining sensitive issues include the rules applied to the practice that consists of selling different insurance products or services in a package. These products cannot be sold separately to the consumer. This is called the 'tying practice' that can affect negatively the consumer. It is different to the 'bundling practice' that allows...