Q&A With Eva Gyori-Toursel: A Luxembourg Perspective On The Forthcoming Insurance Distribution Directive

Luxembourg counsel Eva Gyori-Toursel gave a recent interview to Delano in respect of the Insurance Distribution Directive that is set to come into force in October.

The aim of the directive is to "regulate the way insurance products are designed and sold both by insurance intermediaries and directly by insurance undertakings," and it sets down rules on the information to be given to consumers prior to the purchase of an insurance contract, transparency rules for distributors and clarifies the procedures for cross-border distribution.

Can you briefly describe in what ways the directive will impact insurance providers' business?

Luxembourg life insurance providers will need to be supportive towards their distribution channels. They have a good opportunity to assist their distribution network with the setting up of appropriate pre-contractual disclosure duties. Based on their existing experience of international business cases, they can help some of their external distributors to grow internationally and master the regulatory framework. Proactive and collaborative institutions will be best positioned.

Do you have the impression that companies in Luxembourg are getting ready?

Luxembourg companies have started the process early. Local providers know that they will have to adapt the implementation of the directive into a broad number of national laws due to their international activities.

It is important to note that many aspects of the directive's implementation will depend on the options taken by each member state. Not all have been decided yet. If one takes the example of "advice", and insurance-based investment products, implementation into national legislation might carry some interesting definitions. For example, in France (see Ordonnance...