The Greek Draft Law harmonising the IDD

The Greek Draft Law harmonising the insurance distribution directive IDD

(Article by Alkistis Christofilou – Partner, Viktoria Chatzara – Senior Associate and Alexandra Papaioannou – Associate, published on Lexology Navigator – Insurance & Reinsurance for Greece, 17 July 2018)

European Union, Greece|July 17 2018

The highly anticipated Draft Law on the transposition of the Insurance Distribution Directive (Directive 2016/97 – IDD) into Greek law was made available for public consultation on 21.06.2018. This brief note focuses on the main particularities and derogations the Greek law drafters propose; it is noted, however, that the Draft Law has not reached the Hellenic Parliament yet, thus, it is still subject to possible amendments during its processing through parliamentary proceedings.

A. (Re)Insurance intermediaries
Categories of (re)insurance intermediaries. (Re)insurance intermediaries established in Greece may either be insurance agents, coordinators of insurance agents (which is a form of organised business of insurance intermediaries, often attached to particular insurance undertakings), insurance brokers and ancillary
intermediaries. Thus the draft abolishes the fourth currently existing “insurance consultants”, who are single intermediaries and will automatically be classified as insurance agents. A broker cannot also be an agent, while an agent, a coordinator and a broker cannot also be an ancillary intermediary. Intermediaries currently
registered in more than one categories, which is quite often, shall select by 15.09.2018 which one they will maintain, otherwise they will, by 01.10.2018, be deleted from the Special Registries.

Registration. The intermediaries shall be registered in the Special Registries of the local Chambers of Tradesmen or the Trade Departments of Commercial Chambers, while the Central Union of Greek Chambers shall organise the Single Information Point linked to the EIOPA site.

Incompatible capacities. Intermediaries cannot at the same time be general directors or directors or representatives of an insurer, whereas an insurer’s employee cannot be an insurance agent or broker.

Knowledge and skills. Insurers may certify that the ancillary insurance intermediaries they cooperate with meet the necessary knowledge and skills requirements. They cannot do so with respect to their employees.

Professional indemnity insurance. Insurers may certify that they take on full responsibility for intermediaries’ actions, unless they are insurance brokers.

Protection against financial inability. A client has settled its obligations upon paying the premium to an intermediary in good faith, while the insurer has only settled its obligations to the client when the client actually receives the insurance money.

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