The Official Journal of the European Union (“OJEU”) has published European Commission Delegated Regulation amending the Insurance Distribution Directive (“IDD”) with regard to regulatory technical standards (RTS) adapting the base euro amounts for professional indemnity insurance (“PII”) and for financial capacity of insurance and reinsurance intermediaries.
Under the IDD, insurance and reinsurance intermediaries are required to hold a certain amount (in Euros) of PII or some other comparable guarantee against liability arising from professional negligence.
Under the IDD, intermediaries are required to have financial capacity amounting to 4% of the sum of annual premiums received, subject to a minimum amount in euros. These amounts must be regularly reviewed to take account of changes in the European index of consumer prices published by Eurostat. The Delegated Regulation will amend regulation to require intermediaries to:
- Hold PII cover or an equivalent guarantee for at least EUR1,564,610 per claim, and in aggregate EUR2,315,610 per year for all claims.
- Have financial capacity amounting, on a permanent basis, to 4% of the sum of annual premiums received, subject to a minimum of…
