Speaking after a plenary session of the European Parliament voted in favour of amendments to the EU Insurance Mediation Directive, the German MEP said consumers would now “be able to make a more informed decision”, as providers would now need to disclose the commissions paid to brokers, as well as all other costs.
He added that the amendments to the existing 2002 EU directive would “shed greater light on the high and hidden costs of insurance products”.
The final text of the revised directive has to be agreed between the parliament, European Commission and European Council, although the timing of its ratification is unclear.
The deferral of a decision frustrated Jane Portas, insurance partner at KPMG, who said the delays would mean the UK would continue to operate to a higher standard than much of Europe.
Ian Sawyer, managing director for Cheltenham-based A-Plan, said: “There is a huge number of people in the UK that do not know that some insurance products exist and there is a huge thing for the industry to be transparent about claims and costs.”